1st Source (NASDAQ:SRCE) Sets New 52-Week High After Earnings Beat

Shares of 1st Source Corporation (NASDAQ:SRCE) reached a new 52-week high during trading on Friday following a better than expected earnings announcement. The company traded as high as $86.77 and last traded at $86.2550, with a volume of 9347 shares changing hands. The stock had previously closed at $83.18.

The financial services provider reported $1.95 EPS for the quarter, topping the consensus estimate of $1.71 by $0.24. The firm had revenue of $118.16 million during the quarter, compared to analysts’ expectations of $114.13 million. 1st Source had a net margin of 28.09% and a return on equity of 13.05%.

1st Source Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Tuesday, August 4th will be issued a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 2.1%. This is a positive change from 1st Source’s previous quarterly dividend of $0.43. The ex-dividend date is Tuesday, August 4th. 1st Source’s payout ratio is 26.38%.

Key Headlines Impacting 1st Source

Here are the key news stories impacting 1st Source this week:

• Positive Sentiment: 1st Source reported record second-quarter results, with net income rising to $47.54 million and diluted EPS of $1.95, well above the $1.71 consensus estimate. Revenue also beat expectations at $118.16 million, helping support the stock. Article Title
• Positive Sentiment: The company also announced a 4.7% increase in its quarterly dividend to $0.45 per share, which may appeal to income-focused investors and reinforce confidence in cash flow. Article Title
• Neutral Sentiment: Several market write-ups echoed the earnings beat, including notes that 1st Source beat sales and earnings estimates in Q2, reinforcing the positive earnings narrative without adding new fundamental details. Article Title
• Neutral Sentiment: Short-interest data showed 0 shares outstanding and a days-to-cover figure of 0.0, which appears data-related and is unlikely to materially affect the stock by itself.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. Piper Sandler upped their target price on 1st Source from $83.00 to $88.00 and gave the company an “overweight” rating in a research note on Monday, April 27th. Weiss Ratings reissued a “buy (a-)” rating on shares of 1st Source in a research note on Thursday, July 2nd. Finally, DA Davidson restated a “neutral” rating and issued a $74.00 price target on shares of 1st Source in a report on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $77.00.

Institutional Trading of 1st Source

Several institutional investors have recently made changes to their positions in SRCE. Russell Investments Group Ltd. increased its holdings in shares of 1st Source by 1.2% during the 4th quarter. Russell Investments Group Ltd. now owns 16,687 shares of the financial services provider’s stock worth $1,043,000 after buying an additional 206 shares during the last quarter. Engineers Gate Manager LP grew its position in 1st Source by 8.9% during the second quarter. Engineers Gate Manager LP now owns 3,726 shares of the financial services provider’s stock valued at $231,000 after acquiring an additional 304 shares during the period. EverSource Wealth Advisors LLC grew its position in 1st Source by 562.1% during the second quarter. EverSource Wealth Advisors LLC now owns 437 shares of the financial services provider’s stock valued at $27,000 after acquiring an additional 371 shares during the period. Zacks Investment Management increased its stake in 1st Source by 4.2% during the third quarter. Zacks Investment Management now owns 9,613 shares of the financial services provider’s stock worth $592,000 after acquiring an additional 388 shares during the last quarter. Finally, Man Group plc increased its stake in 1st Source by 3.6% during the fourth quarter. Man Group plc now owns 11,933 shares of the financial services provider’s stock worth $746,000 after acquiring an additional 413 shares during the last quarter. 74.45% of the stock is owned by hedge funds and other institutional investors.

1st Source Trading Up 3.2%

The business has a fifty day moving average price of $78.56 and a 200 day moving average price of $72.55. The company has a market capitalization of $2.07 billion, a PE ratio of 13.17 and a beta of 0.58. The company has a debt-to-equity ratio of 0.07, a quick ratio of 0.96 and a current ratio of 0.96.

About 1st Source

1st Source Corporation is a bank holding company headquartered in South Bend, Indiana, operating through its wholly owned subsidiary, 1st Source Bank. The company offers a full range of commercial and consumer banking products, including checking and savings accounts, business and commercial lending, residential mortgage loans, and cash management services. Its client base spans small and medium-sized businesses, agribusinesses, professional firms, and individual consumers primarily across northern Indiana and southwestern Michigan.

In addition to traditional banking services, 1st Source Corporation provides wealth management and trust services through its 1st Source Wealth Management division.