1st Source Corporation $SRCE Stock: Sterling Capital Management LLC Raises Stake

Sterling Capital Management LLC raised its stake in shares of 1st Source Corporation (NASDAQ:SRCE) by 640.3% in the third quarter, Holdings Channel reports. The institutional investor owned 32,515 shares of the financial services provider’s stock after buying an additional 28,123 shares during the quarter. Sterling Capital Management LLC’s holdings in 1st Source were worth $2,748,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. 1ST Source Bank bought a new stake in shares of 1st Source during the second quarter valued at about $416,946,000. BlackRock Inc. bought a new position in shares of 1st Source in the second quarter valued at approximately $166,355,000. Jupiter Topco LLC bought a new position in shares of 1st Source in the second quarter valued at approximately $39,286,000. Janus Henderson Group PLC grew its stake in 1st Source by 37.4% during the first 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 in the last quarter. Finally, The Manufacturers Life Insurance Company purchased a new position in 1st Source during the second quarter valued at approximately $19,319,000. 74.45% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Piper Sandler upped their target price on shares of 1st Source from $88.00 to $100.00 and gave the stock an “overweight” rating in a report on Tuesday, July 28th. Zacks Research downgraded shares of 1st Source from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. DA Davidson boosted their price target on shares of 1st Source from $77.00 to $87.00 and gave the company a “neutral” rating in a research report on Monday, July 27th. Keefe, Bruyette & Woods upped their price target on shares of 1st Source from $79.00 to $82.00 and gave the stock a “market perform” rating in a report on Monday, July 27th. Finally, Weiss Ratings upgraded 1st Source from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Thursday, October 8th. 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 MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $89.67.

Key Stories Impacting 1st Source

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

• Positive Sentiment: Record Q3 earnings: Net income rose 17.1% year over year to $49.54 million, while diluted EPS increased to $2.03 from $1.71. EPS exceeded the $1.83 analyst consensus, and revenue of approximately $118.8 million also topped expectations. 1st Source Corporation Reports Record Third Quarter Results, Cash Dividend Declared
• Positive Sentiment: Improving core banking performance: Net interest income increased to $95.59 million from $88.75 million a year earlier. Average loans and leases grew to $7.26 billion, up $112.8 million sequentially, supporting revenue growth. 1st Source Reports Record Third-Quarter Net Income
• Positive Sentiment: Dividend supports shareholder returns: The board declared a quarterly cash dividend of $0.45 per share, or $1.80 annualized, representing a yield of roughly 2%. The dividend is payable November 13 to shareholders of record November 3. 1st Source Declares Quarterly Cash Dividend
• Neutral Sentiment: Credit metrics remained stable: Net charge-offs were only $0.33 million and the provision for credit losses was $0.90 million, although the allowance for loan losses stood at $167.16 million, or 2.28% of loans.
• Negative Sentiment: Limited caution signals: Average deposits increased only slightly from the prior quarter, and reported data showed a 500-share sale by CFO Brett Bauer. These factors may temper the otherwise favorable earnings reaction.

Insider Activity at 1st Source

In related news, CFO Brett Bauer sold 500 shares of the company’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $87.89, for a total transaction of $43,945.00. Following the completion of the sale, the chief financial officer directly owned 30,706 shares in the company, valued at $2,698,750.34. This represents a 1.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 20.17% of the stock is currently owned by insiders.

1st Source Price Performance

Shares of 1st Source stock opened at $87.29 on Monday. The firm has a market capitalization of $2.10 billion, a PE ratio of 12.54 and a beta of 0.57. 1st Source Corporation has a 12 month low of $58.49 and a 12 month high of $91.46. The business’s 50-day moving average price is $85.94 and its 200-day moving average price is $81.28. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 0.07.

1st Source (NASDAQ:SRCE) last announced its quarterly earnings data on Thursday, October 22nd. The financial services provider reported $2.03 earnings per share for the quarter, topping analysts’ consensus estimates of $1.83 by $0.20. The firm had revenue of $118.83 million during the quarter, compared to analyst estimates of $118.11 million. 1st Source had a net margin of 28.85% and a return on equity of 13.57%. Sell-side analysts forecast that 1st Source Corporation will post 7.26 EPS for the current fiscal year.

1st Source Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Tuesday, November 3rd will be paid a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Tuesday, November 3rd. 1st Source’s payout ratio is 25.86%.

About 1st Source

1st Source Corporation (NASDAQ:SRCE) is a bank holding company headquartered in South Bend, Indiana. Its principal subsidiary, 1st Source Bank, provides banking and financial services to individuals, businesses, and institutions.

The bank offers deposit accounts, consumer and commercial lending, mortgages, cash-management services, treasury services, and online and mobile banking. It also provides trust, investment management, and wealth advisory services, along with insurance-related products through affiliated operations.

1st Source has specialized lending businesses serving industries such as aviation, construction equipment, transportation, and recreational vehicles.