1st Source (NASDAQ:SRCE) Hits New 1-Year High After Dividend Announcement

Shares of 1st Source Corporation (NASDAQ:SRCE) hit a new 52-week high on Friday after the company announced a dividend. The company traded as high as $76.44 and last traded at $73.6950, with a volume of 70408 shares. The stock had previously closed at $73.90.

The newly announced dividend which will be paid on Friday, May 15th. Stockholders of record on Tuesday, May 5th will be issued a dividend of $0.43 per share. The ex-dividend date of this dividend is Tuesday, May 5th. This is an increase from 1st Source’s previous quarterly dividend of $0.40. This represents a $1.72 dividend on an annualized basis and a dividend yield of 2.4%. 1st Source’s dividend payout ratio is currently 24.96%.

Analyst Ratings Changes

Several equities research analysts recently commented on SRCE shares. Weiss Ratings raised 1st Source from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Monday, April 6th. DA Davidson upped their target price on shares of 1st Source from $69.00 to $74.00 and gave the company a “neutral” rating in a research note on Wednesday, January 28th. Finally, Piper Sandler raised their price target on shares of 1st Source from $80.00 to $83.00 and gave the company an “overweight” rating in a report on Monday, January 26th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $75.33.

1st Source Stock Performance

The business’s 50 day simple moving average is $69.98 and its two-hundred day simple moving average is $65.74. The firm has a market capitalization of $1.78 billion, a PE ratio of 11.21 and a beta of 0.58. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.08.

1st Source (NASDAQ:SRCE) last released its quarterly earnings results on Thursday, April 23rd. The financial services provider reported $1.63 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.64 by ($0.01). The firm had revenue of $113.14 million during the quarter, compared to analysts’ expectations of $111.88 million. 1st Source had a return on equity of 12.47% and a net margin of 26.66%. Research analysts expect that 1st Source Corporation will post 6.7 earnings per share for the current fiscal year.

Key 1st Source News

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

• Positive Sentiment: Company reported record first-quarter results with revenue beating estimates and year-over-year net income growth; diluted EPS was $1.63 and revenue was $113.14M, slightly above consensus — this underpins fundamentals and supports the recent share-price strength. Article Title
• Positive Sentiment: Board raised the quarterly cash dividend to $0.43 (7.5% increase), with an ex-dividend date of May 5 — a yield around 2.3% and the hike signals management confidence and supports income-oriented demand. Article Title
• Neutral Sentiment: Shareholders approved amendments to three equity compensation plans at the April 23 annual meeting — this helps retention and incentives but may increase long-term share dilution depending on grant usage. Article Title
• Negative Sentiment: Q1 EPS missed consensus by $0.01 ($1.63 vs. $1.64) — a very small miss but enough to trigger short-term selling or analyst caution. Article Title
• Negative Sentiment: Short interest rose materially in mid-April to ~481,911 shares (up ~24% from March 31), representing about 2.5% of shares and a ~3.1 days-to-cover ratio — elevated short activity can add downward pressure and volatility.

Institutional Investors Weigh In On 1st Source

Hedge funds and other institutional investors have recently made changes to their positions in the business. EverSource Wealth Advisors LLC boosted its holdings in shares of 1st Source by 562.1% in the second quarter. EverSource Wealth Advisors LLC now owns 437 shares of the financial services provider’s stock worth $27,000 after buying an additional 371 shares during the last quarter. Quarry LP increased its holdings in 1st Source by 1,694.4% during the third quarter. Quarry LP now owns 646 shares of the financial services provider’s stock valued at $40,000 after buying an additional 610 shares during the last quarter. Rossby Financial LCC purchased a new stake in 1st Source during the fourth quarter valued at approximately $50,000. State of Alaska Department of Revenue bought a new position in 1st Source in the third quarter worth approximately $60,000. Finally, Tower Research Capital LLC TRC raised its position in 1st Source by 435.7% in the second quarter. Tower Research Capital LLC TRC now owns 1,682 shares of the financial services provider’s stock worth $104,000 after acquiring an additional 1,368 shares during the period. Hedge funds and other institutional investors own 74.45% of the company’s stock.

1st Source Company Profile

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.