Hsbc Holdings PLC Invests $2.54 Million in 1st Source Corporation $SRCE

Key Points

• HSBC Holdings acquired 30,996 shares of 1st Source worth approximately $2.54 million, giving it a 0.13% stake. Institutional investors and hedge funds collectively own 74.45% of the company.
• 1st Source exceeded quarterly expectations, reporting $1.95 EPS versus the $1.71 consensus and revenue of $118.16 million versus $114.13 million expected. The company also raised its quarterly dividend to $0.45, equivalent to a 2.1% annualized yield.
• Analyst sentiment is generally positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $89.67; Piper Sandler raised its target to $100 and assigned an “overweight” rating.

Hsbc Holdings PLC bought a new stake in 1st Source Corporation (NASDAQ:SRCE - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor bought 30,996 shares of the financial services provider's stock, valued at approximately $2,537,000. Hsbc Holdings PLC owned 0.13% of 1st Source as of its most recent filing with the SEC.

Other hedge funds have also bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in 1st Source by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,911 shares of the financial services provider's stock worth $653,000 after buying an additional 467 shares during the last quarter. Millennium Management LLC lifted its position 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 valued at $14,502,000 after buying an additional 38,610 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of 1st Source by 29.1% during the 1st 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 acquiring an additional 7,456 shares during the period. Creative Planning bought a new position in shares of 1st Source during the 2nd quarter worth approximately $284,000. Finally, Norges Bank acquired a new position in shares of 1st Source during the 2nd quarter worth approximately $855,000. 74.45% of the stock is currently owned by institutional investors and hedge funds.

1st Source Price Performance

SRCE stock opened at $86.41 on Monday. The company has a debt-to-equity ratio of 0.07, a current ratio of 0.97 and a quick ratio of 0.97. The stock has a market capitalization of $2.08 billion, a price-to-earnings ratio of 13.25 and a beta of 0.57. The business's fifty day moving average price is $85.05 and its two-hundred day moving average price is $76.45. 1st Source Corporation has a fifty-two week low of $56.89 and a fifty-two week high of $91.46.

1st Source (NASDAQ:SRCE - Get Free Report) last announced its earnings results on Thursday, July 23rd. The financial services provider reported $1.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.71 by $0.24. 1st Source had a net margin of 28.09% and a return on equity of 12.94%. The company had revenue of $118.16 million during the quarter, compared to analysts' expectations of $114.13 million. On average, equities analysts anticipate that 1st Source Corporation will post 7.26 earnings per share for the current year.

1st Source Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Tuesday, August 4th were issued a $0.45 dividend. The ex-dividend date of this dividend was Tuesday, August 4th. This represents a $1.80 dividend on an annualized basis and a yield of 2.1%. This is an increase from 1st Source's previous quarterly dividend of $0.43. 1st Source's payout ratio is presently 27.61%.

Wall Street Analysts Forecast Growth

SRCE has been the subject of several research reports. Zacks Research raised 1st Source from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 28th. Weiss Ratings lowered shares of 1st Source from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Tuesday, July 28th. Keefe, Bruyette & Woods raised 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 note on Monday, July 27th. DA Davidson lifted their target price on shares of 1st Source from $77.00 to $87.00 and gave the stock a "neutral" rating in a report on Monday, July 27th. Finally, Piper Sandler increased their price target on shares of 1st Source from $88.00 to $100.00 and gave the company an "overweight" rating in a report on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $89.67.

Insider Activity

In other 1st Source news, CFO Brett A. Bauer sold 500 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $87.89, for a total transaction of $43,945.00. Following the transaction, the chief financial officer owned 30,706 shares in the company, valued at $2,698,750.34. This represents a 1.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 20.17% of the stock is currently owned by 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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