1st Source (NASDAQ:SRCE) Releases Quarterly Earnings Results, Beats Expectations By $0.24 EPS

1st Source (NASDAQ:SRCE) announced its quarterly earnings results on Thursday. The financial services provider reported $1.95 earnings per share for the quarter, topping the consensus estimate of $1.71 by $0.24, FiscalAI reports. 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 Stock Up 3.2%

NASDAQ:SRCE opened at $85.84 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 0.96 and a quick ratio of 0.96. The company’s fifty day moving average price is $78.56 and its 200-day moving average price is $72.55. 1st Source has a 1-year low of $56.89 and a 1-year high of $86.80. The firm has a market capitalization of $2.07 billion, a P/E ratio of 13.17 and a beta of 0.58.

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 paid a $0.45 dividend. The ex-dividend date is Tuesday, August 4th. This is an increase from 1st Source’s previous quarterly dividend of $0.43. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.1%. 1st Source’s dividend payout ratio (DPR) is currently 26.38%.

Institutional Investors Weigh In On 1st Source

Hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC raised its stake in shares of 1st Source by 562.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 437 shares of the financial services provider’s stock valued at $27,000 after buying an additional 371 shares during the last quarter. Quarry LP boosted its stake in shares of 1st Source by 1,694.4% in the third quarter. Quarry LP now owns 646 shares of the financial services provider’s stock worth $40,000 after buying an additional 610 shares during the last quarter. Rossby Financial LCC acquired a new stake in 1st Source during the fourth quarter worth about $50,000. Tower Research Capital LLC TRC raised its position in 1st Source by 435.7% during the second quarter. Tower Research Capital LLC TRC now owns 1,682 shares of the financial services provider’s stock valued at $104,000 after acquiring an additional 1,368 shares in the last quarter. Finally, Los Angeles Capital Management LLC purchased a new position in 1st Source during the fourth quarter valued at approximately $128,000. 74.45% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms have issued reports on SRCE. Piper Sandler lifted their price target on shares of 1st Source from $83.00 to $88.00 and gave the stock an “overweight” rating in a report on Monday, April 27th. Weiss Ratings reiterated 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 set a $74.00 price target on shares of 1st Source in a research note 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. According to data from MarketBeat.com, 1st Source has a consensus rating of “Moderate Buy” and an average target price of $77.00.

Trending Headlines about 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.

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.