1ST Source Bank Invests $416.95 Million in 1st Source Corporation $SRCE

Key Points

• 1ST Source Bank acquired 5.11 million shares of 1st Source Corporation worth approximately $416.95 million, making SRCE its second-largest holding and giving the bank about a 21.22% ownership stake.
• Analysts maintain a generally positive outlook, with the stock carrying a consensus “Moderate Buy” rating and an average price target of $89.67. Recent quarterly earnings also exceeded expectations, with EPS of $1.95 versus the $1.71 consensus estimate.
• 1st Source increased its quarterly dividend to $0.45 per share, or $1.80 annualized, representing a 2.0% yield; shares recently traded at $88.60, near their 52-week high of $91.46.

1ST Source Bank purchased a new stake in 1st Source Corporation (NASDAQ:SRCE - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 5,110,889 shares of the financial services provider's stock, valued at approximately $416,946,000. 1st Source accounts for approximately 18.9% of 1ST Source Bank's holdings, making the stock its 2nd largest holding. 1ST Source Bank owned approximately 21.22% of 1st Source as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in 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 worth $82,277,000 after acquiring an additional 122,146 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in 1st Source by 1.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 690,590 shares of the financial services provider's stock valued at $43,155,000 after purchasing an additional 8,614 shares during the last quarter. Geode Capital Management LLC raised its stake in 1st Source by 3.0% during the 4th quarter. Geode Capital Management LLC now owns 498,781 shares of the financial services provider's stock worth $31,173,000 after acquiring an additional 14,643 shares in the last quarter. Janus Henderson Group PLC boosted its position in shares of 1st Source by 37.4% in 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 purchasing an additional 125,248 shares during the period. Finally, Kennedy Capital Management LLC grew its position in shares of 1st Source by 19.8% during the fourth quarter. Kennedy Capital Management LLC now owns 318,733 shares of the financial services provider's stock worth $19,918,000 after acquiring an additional 52,787 shares during the last quarter. 74.45% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

SRCE has been the topic of several recent research reports. DA Davidson boosted their price objective on shares of 1st Source from $77.00 to $87.00 and gave the company a "neutral" rating in a research note on Monday, July 27th. Keefe, Bruyette & Woods upped their target price on 1st Source from $79.00 to $82.00 and gave the company a "market perform" rating in a report on Monday, July 27th. Weiss Ratings cut 1st Source from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Tuesday, July 28th. Piper Sandler lifted their price target on 1st Source from $88.00 to $100.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 28th. Finally, Zacks Research upgraded shares of 1st Source from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, 1st Source currently has a consensus rating of "Moderate Buy" and a consensus price target of $89.67.

1st Source Price Performance

SRCE opened at $88.60 on Monday. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 0.07. The firm has a market cap of $2.13 billion, a P/E ratio of 13.59 and a beta of 0.57. 1st Source Corporation has a 52 week low of $56.89 and a 52 week high of $91.46. The business's fifty day simple moving average is $83.20 and its 200 day simple moving average is $75.17.

1st Source (NASDAQ:SRCE - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The financial services provider reported $1.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.71 by $0.24. The company had revenue of $118.16 million for 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 12.94%. As a group, equities research analysts anticipate that 1st Source Corporation will post 7.26 EPS for the current fiscal year.

1st Source Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Tuesday, August 4th were given a $0.45 dividend. 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 2.0%. The ex-dividend date of this dividend was Tuesday, August 4th. 1st Source's dividend payout ratio (DPR) is presently 27.61%.

Insider Buying and Selling

In other news, CFO Brett A. Bauer sold 500 shares of the company's stock in a transaction dated 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 transaction, the chief financial officer owned 30,706 shares of the company's stock, valued at $2,698,750.34. This represents a 1.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 20.17% of the stock is owned by company insiders.

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.

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