1st Source (NASDAQ:SRCE) Hits New 52-Week High Following Better-Than-Expected Earnings

1st Source Corporation (NASDAQ:SRCE) shares hit a new 52-week high 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 traded. The stock had previously closed at $83.18.

The financial services provider reported $1.95 earnings per share 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 return on equity of 13.05% and a net margin of 28.09%.

1st Source Increases Dividend

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

More 1st Source News

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.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Piper Sandler upped their target price on shares of 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 report on Thursday, July 2nd. Finally, DA Davidson restated a “neutral” rating and set a $74.00 price objective on shares of 1st Source in a research report on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $77.00.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Janus Henderson Group PLC boosted its position in 1st Source by 37.4% in the first quarter. Janus Henderson Group PLC now owns 460,422 shares of the financial services provider’s stock worth $31,889,000 after purchasing an additional 125,248 shares during the last quarter. Vanguard Group Inc. increased its position in shares of 1st Source by 10.2% during the 4th quarter. Vanguard Group Inc. now owns 1,316,642 shares of the financial services provider’s stock valued at $82,277,000 after purchasing an additional 122,146 shares during the last quarter. UBS Group AG increased its position in shares of 1st Source by 54.9% during the 3rd quarter. UBS Group AG now owns 243,630 shares of the financial services provider’s stock valued at $14,998,000 after purchasing an additional 86,322 shares during the last quarter. Qube Research & Technologies Ltd lifted its stake in shares of 1st Source by 95.6% in the 2nd quarter. Qube Research & Technologies Ltd now owns 161,602 shares of the financial services provider’s stock worth $10,031,000 after purchasing an additional 78,994 shares during the period. Finally, Goldman Sachs Group Inc. lifted its stake in shares of 1st Source by 52.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 168,703 shares of the financial services provider’s stock worth $10,542,000 after purchasing an additional 58,135 shares during the period. Institutional investors own 74.45% of the company’s stock.

1st Source Stock Performance

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

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.