28,123 1st Source Corporation $SRCE Shares Acquired by Sterling Capital Management LLC

Key Points

• Sterling Capital Management increased its 1st Source position by 640.3% in the third quarter, acquiring 28,123 shares for a total holding of 32,515 shares valued at approximately $2.75 million. Institutional investors collectively own 74.45% of the company.
• 1st Source reported strong third-quarter results, with EPS of $2.03 beating the $1.83 consensus estimate and revenue of $118.83 million exceeding expectations. Net income rose 17.1% year over year to $49.54 million.
• The company declared a quarterly dividend of $0.45 per share, equivalent to $1.80 annually and a yield of roughly 2.1%. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $89.67, while the stock recently traded at $87.29.

Sterling Capital Management LLC grew its position in shares of 1st Source Corporation (NASDAQ:SRCE - Free Report) by 640.3% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 32,515 shares of the financial services provider's stock after purchasing an additional 28,123 shares during the quarter. Sterling Capital Management LLC owned about 0.14% of 1st Source worth $2,748,000 as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in the company. 1ST Source Bank bought a new stake in shares of 1st Source in the 2nd quarter valued at $416,946,000. BlackRock Inc. bought a new stake in 1st Source during the 2nd quarter valued at $166,355,000. Jupiter Topco LLC bought a new position in shares of 1st Source in the second quarter valued at $39,286,000. The Manufacturers Life Insurance Company acquired a new position in shares of 1st Source during the second quarter valued at about $19,319,000. Finally, Janus Henderson Group PLC grew its holdings in shares of 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 buying an additional 125,248 shares during the last quarter. Institutional investors own 74.45% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently commented on SRCE. Keefe, Bruyette & Woods boosted their target price on shares of 1st Source from $79.00 to $82.00 and gave the stock a "market perform" rating in a research report on Monday, July 27th. Weiss Ratings raised 1st Source from a "buy (b+)" rating to a "buy (a-)" rating in a report on Thursday, October 8th. DA Davidson increased their price objective on 1st Source from $77.00 to $87.00 and gave the stock a "neutral" rating in a research note on Monday, July 27th. Piper Sandler increased their price objective 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 cut shares of 1st Source from a "strong-buy" rating to a "hold" rating in a report on Monday, September 28th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, 1st Source has a consensus rating of "Moderate Buy" and a consensus price target of $89.67.

Insider Activity at 1st Source

In related news, CFO Brett Bauer sold 500 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $87.89, for a total value of $43,945.00. Following the completion of the transaction, the chief financial officer directly owned 30,706 shares of the company's stock, valued at approximately $2,698,750.34. This trade represents a 1.60% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 20.17% of the company's stock.

1st Source Price Performance

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

1st Source (NASDAQ:SRCE - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The financial services provider reported $2.03 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.83 by $0.20. The business had revenue of $118.83 million for the quarter, compared to analysts' expectations of $118.11 million. 1st Source had a return on equity of 13.57% and a net margin of 28.85%. On average, equities research analysts anticipate that 1st Source Corporation will post 7.26 EPS for the current year.

1st Source Dividend Announcement

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

1st Source News Summary

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.

1st Source Company Profile

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.

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