1st Source Corporation (NASDAQ:SRCE) Declares Quarterly Dividend of $0.43

Key Points

• 1st Source declared a quarterly dividend of $0.43 (a 7.5% increase from $0.40), payable May 15 to holders of record on May 5, with an annualized yield of about 2.3%; the bank has raised its dividend for 38 consecutive years and carries a low payout ratio (~26.9%), signaling dividend sustainability.
• The company reported Q results with EPS of $1.63 (meeting estimates) and revenue of $113.14M (above expectations); the stock traded around $73.90 with a PE of ~11.5 and a MarketBeat consensus target of $75.33 (average rating: Moderate Buy).

1st Source Corporation (NASDAQ:SRCE - Get Free Report) announced a quarterly dividend on Thursday, April 23rd. Investors of record on Tuesday, May 5th will be given a dividend of 0.43 per share by the financial services provider on Friday, May 15th. This represents a c) dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Tuesday, May 5th. This is a 7.5% increase from 1st Source's previous quarterly dividend of $0.40.

1st Source has raised its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 38 consecutive years. 1st Source has a payout ratio of 26.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect 1st Source to earn $6.89 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 23.2%.

1st Source Stock Performance

SRCE traded up $0.70 during trading hours on Thursday, reaching $73.90. The company's stock had a trading volume of 110,560 shares, compared to its average volume of 135,135. 1st Source has a 52 week low of $56.49 and a 52 week high of $75.64. The company's 50-day moving average is $69.85 and its 200-day moving average is $65.60. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.96 and a current ratio of 0.96. The firm has a market cap of $1.80 billion, a PE ratio of 11.53 and a beta of 0.58.

1st Source (NASDAQ:SRCE - Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The financial services provider reported $1.63 earnings per share for the quarter, meeting analysts' consensus estimates of $1.63. The business had revenue of $113.14 million for the quarter, compared to analysts' expectations of $111.88 million. 1st Source had a return on equity of 12.44% and a net margin of 26.38%. On average, equities analysts forecast that 1st Source will post 6.7 EPS for the current year.

Analysts Set New Price Targets

SRCE has been the subject of several research analyst reports. Piper Sandler lifted their target price on shares of 1st Source from $80.00 to $83.00 and gave the stock an "overweight" rating in a report on Monday, January 26th. Weiss Ratings raised shares of 1st Source from a "buy (b+)" rating to a "buy (a-)" rating in a report on Monday, April 6th. Finally, DA Davidson lifted their target price on shares of 1st Source from $69.00 to $74.00 and gave the stock a "neutral" rating in a report on Wednesday, January 28th. 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 stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $75.33.

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.

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