Insider Transaction: MICHAEL BAUR Sells $823K Worth Of ScanSource Shares

Disclosed on December 17, MICHAEL BAUR, CEO at ScanSource (NASDAQ:SCSC), executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that BAUR executed a sale of 20,000 shares of ScanSource with a total value of $823,367.

In the Wednesday's morning session, ScanSource's shares are currently trading at $41.55, experiencing a down of 0.46%.

Get to Know ScanSource Better

ScanSource Inc provides value-added services for technology manufacturers and sells to resellers in specialty technology markets. The firm's operations are organized in two segments: Specialty Technology Solutions and Intelisys & Advisory Segment. It generates maximum revenue from the Specialty Technology Solutions segment. The Specialty Technology Solutions segment includes the company's business in mobility and barcode, POS, payments, security and networking technologies. Geographically, it derives a majority of revenue from the United States and Canada, and also has its presence in Brazil, and other countries.

Financial Insights: ScanSource

Revenue Challenges: ScanSource's revenue growth over 3 months faced difficulties. As of 30 September, 2025, the company experienced a decline of approximately -4.63%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Insights into Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 14.53%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): ScanSource's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.9.

Debt Management: ScanSource's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.15.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 13.04 is lower than the industry average, implying a discounted valuation for ScanSource's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.32, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 6.84, ScanSource presents an attractive value opportunity.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Insider Transactions Are Important

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

A Deep Dive into Insider Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of ScanSource's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.