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

Shares of 1st Source Corporation (NASDAQ:SRCE) reached a new 52-week high on Friday following a stronger than expected earnings report. 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 (EPS) for the quarter, beating analysts’ consensus estimates 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 12.39% and a net margin of 26.66%.

1st Source Increases Dividend

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

Wall Street Analyst Weigh In

SRCE has been the topic of a number of recent research reports. Piper Sandler raised their price objective on 1st Source from $83.00 to $88.00 and gave the stock an “overweight” rating in a research note on Monday, April 27th. DA Davidson reiterated a “neutral” rating and issued a $74.00 target price on shares of 1st Source in a report on Monday, April 27th. Finally, Weiss Ratings reiterated a “buy (a-)” rating on shares of 1st Source in a research note on Thursday, July 2nd. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, 1st Source presently has a consensus rating of “Moderate Buy” and an average price target of $77.00.

Institutional Investors Weigh In On 1st Source

Several large investors have recently added to or reduced their stakes in SRCE. Janus Henderson Group PLC raised its holdings in 1st Source by 37.4% during the 1st quarter. Janus Henderson Group PLC now owns 460,422 shares of the financial services provider’s stock valued at $31,889,000 after acquiring an additional 125,248 shares during the period. Vanguard Group Inc. grew its holdings 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 lifted its position in 1st Source by 54.9% in the third 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 boosted its holdings in shares of 1st Source by 95.6% during the second 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 1st Source by 52.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 168,703 shares of the financial services provider’s stock worth $10,542,000 after acquiring an additional 58,135 shares during the period. Hedge funds and other institutional investors own 74.45% of the company’s stock.

1st Source Stock Performance

The company has a 50-day simple moving average of $78.27 and a two-hundred day simple moving average of $72.46. The firm has a market capitalization of $2.05 billion, a P/E ratio of 13.14 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.