1st Source (NASDAQ:SRCE) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Key Points

• 1st Source reported quarterly EPS of $1.63, missing the consensus by $0.01, while revenue of $113.14 million topped estimates; the company posted a net margin of 26.38% and a ROE of 12.44%.
• The board raised the quarterly dividend to $0.43 (annualized $1.72), a ~2.3% yield, with an ex-dividend date of May 5 and payout on May 15; the payout ratio is about 24.96%.
• Shares are trading higher and the company has a market cap of ~$1.8B and a PE of 11.5, with ~74.5% institutional ownership; analysts give a consensus rating of “Moderate Buy” and a target of about $75.33, with some firms raising targets (e.g., Piper Sandler to $83).

1st Source (NASDAQ:SRCE - Get Free Report) announced its quarterly earnings data on Thursday. The financial services provider reported $1.63 EPS for the quarter, missing the consensus estimate of $1.64 by ($0.01), FiscalAI reports. The business had revenue of $113.14 million during the quarter, compared to the consensus estimate of $111.88 million. 1st Source had a net margin of 26.38% and a return on equity of 12.44%.

1st Source Trading Up 1.0%

1st Source stock opened at $73.90 on Friday. The stock's 50 day simple moving average is $69.93 and its two-hundred day simple moving average is $65.65. 1st Source has a 12 month low of $56.49 and a 12 month high of $75.64. The firm has a market cap of $1.80 billion, a PE ratio of 11.53 and a beta of 0.58. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.08.

1st Source Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Tuesday, May 5th will be given a $0.43 dividend. The ex-dividend date is Tuesday, May 5th. This represents a $1.72 annualized dividend and a yield of 2.3%. This is a boost from 1st Source's previous quarterly dividend of $0.40. 1st Source's payout ratio is currently 24.96%.

Institutional Trading of 1st Source

Institutional investors have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of 1st Source by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,911 shares of the financial services provider's stock valued at $653,000 after purchasing an additional 467 shares during the period. Millennium Management LLC lifted its stake in shares of 1st Source by 18.9% in the first quarter. Millennium Management LLC now owns 242,466 shares of the financial services provider's stock worth $14,502,000 after buying an additional 38,610 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of 1st Source by 29.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 33,052 shares of the financial services provider's stock worth $1,977,000 after buying an additional 7,456 shares in the last quarter. Creative Planning acquired a new position in 1st Source during the second quarter worth about $284,000. Finally, Norges Bank acquired a new position in 1st Source during the second quarter worth about $855,000. 74.45% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

SRCE has been the topic of a number of research reports. Piper Sandler raised their target price on shares of 1st Source from $80.00 to $83.00 and gave the stock an "overweight" rating in a research report on Monday, January 26th. Weiss Ratings upgraded shares of 1st Source from a "buy (b+)" rating to a "buy (a-)" rating in a report on Monday, April 6th. Finally, DA Davidson increased their price objective on 1st Source from $69.00 to $74.00 and gave the company a "neutral" rating in a report on Wednesday, January 28th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $75.33.

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.