Source Capital, Inc. (NYSE:SOR) Sees Significant Growth in Short Interest

Key Points

• Short interest surged 323.9% to 3,650 shares as of August 14, up from 861 shares on July 30. Despite the increase, only 0.2% of shares are sold short, with a days-to-cover ratio of 0.4.
• Hedge funds and institutional investors adjusted their positions, including PNC Financial Services, which increased its holdings by 1,900%. Institutions currently own 13.15% of Source Capital.
• Source Capital shares recently traded at $46.72, while the company announced a monthly dividend of $0.2083 per share, representing an annualized yield of approximately 5.3%.

Source Capital, Inc. (NYSE:SOR - Get Free Report) saw a significant increase in short interest in the month of August. As of August 14th, there was short interest totaling 3,650 shares, an increase of 323.9% from the July 30th total of 861 shares. Based on an average daily trading volume, of 9,457 shares, the days-to-cover ratio is currently 0.4 days. Currently, 0.2% of the company's shares are sold short.

Institutional Investors Weigh In On Source Capital

Several hedge funds have recently modified their holdings of the stock. WHI TRUST Co LLC purchased a new position in Source Capital in the 4th quarter worth approximately $42,000. PNC Financial Services Group Inc. lifted its position in shares of Source Capital by 1,900.0% during the first quarter. PNC Financial Services Group Inc. now owns 1,000 shares of the financial services provider's stock worth $46,000 after purchasing an additional 950 shares in the last quarter. Manchester Capital Management LLC purchased a new position in shares of Source Capital in the fourth quarter valued at $68,000. JPMorgan Chase & Co. grew its holdings in Source Capital by 30.9% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,724 shares of the financial services provider's stock valued at $78,000 after purchasing an additional 407 shares in the last quarter. Finally, Kestra Advisory Services LLC acquired a new stake in Source Capital during the 4th quarter valued at $85,000. 13.15% of the stock is currently owned by hedge funds and other institutional investors.

Source Capital Stock Performance

Shares of SOR stock traded down $0.05 during mid-day trading on Wednesday, reaching $46.72. The company's stock had a trading volume of 5,565 shares, compared to its average volume of 12,317. The company's 50 day simple moving average is $45.99 and its 200-day simple moving average is $46.25. Source Capital has a 12-month low of $44.11 and a 12-month high of $50.41.

Source Capital Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Monday, November 30th. Shareholders of record on Friday, November 13th will be paid a dividend of $0.2083 per share. This represents a c) dividend on an annualized basis and a dividend yield of 5.3%. The ex-dividend date is Friday, November 13th.

About Source Capital

Source Capital Inc is an externally managed specialty finance company that provides flexible financing solutions to U.S. middle-market companies. Structured as a closed-end investment company, it focuses on investing in both debt and equity securities of businesses seeking growth capital, refinancing, acquisitions, recapitalizations and other strategic initiatives.

The company's investment strategy encompasses senior secured loans, unitranche facilities, second-lien financings, mezzanine debt and equity co-investments.

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