Short Interest in Source Capital, Inc. (NYSE:SOR) Rises By 167.8%

Key Points

• Short interest surged 167.8% in February to 3,492 shares (about 0.2% of shares outstanding), with a days-to-cover ratio of 0.3, signaling a small short base that could be covered quickly.
• Source Capital declared a monthly dividend of $0.2083 per share payable May 29 (ex-dividend and record date May 14), implying an annualized dividend yield of about 5.3%.
• Institutional investors have been adding stakes—Align Financial and Diversified Management initiated sizable positions (~$7.006M and $5.344M respectively)—and institutions now own roughly 13.15% of the stock.

Source Capital, Inc. (NYSE:SOR - Get Free Report) was the target of a significant increase in short interest in the month of February. As of February 27th, there was short interest totaling 3,492 shares, an increase of 167.8% from the February 12th total of 1,304 shares. Based on an average trading volume of 13,116 shares, the days-to-cover ratio is currently 0.3 days. Approximately 0.2% of the company's shares are short sold. Approximately 0.2% of the company's shares are short sold. Based on an average trading volume of 13,116 shares, the days-to-cover ratio is currently 0.3 days.

Source Capital Price Performance

Shares of Source Capital stock traded down $0.34 during trading on Wednesday, hitting $46.74. The stock had a trading volume of 10,319 shares, compared to its average volume of 13,411. Source Capital has a 12 month low of $38.66 and a 12 month high of $50.41. The firm's fifty day simple moving average is $47.89 and its 200-day simple moving average is $46.59.

Source Capital Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Friday, May 29th. Stockholders of record on Thursday, May 14th will be paid a dividend of $0.2083 per share. The ex-dividend date of this dividend is Thursday, May 14th. This represents a c) dividend on an annualized basis and a dividend yield of 5.3%.

Institutional Investors Weigh In On Source Capital

A number of institutional investors and hedge funds have recently modified their holdings of the business. Align Financial LLC purchased a new position in Source Capital during the 4th quarter valued at $7,006,000. Diversified Management Inc. bought a new stake in shares of Source Capital during the fourth quarter worth $5,344,000. Hara Capital LLC lifted its position in shares of Source Capital by 50.3% during the second quarter. Hara Capital LLC now owns 107,537 shares of the financial services provider's stock worth $4,663,000 after purchasing an additional 35,995 shares during the last quarter. Cornerstone Advisors LLC boosted its stake in shares of Source Capital by 487.9% during the second quarter. Cornerstone Advisors LLC now owns 16,942 shares of the financial services provider's stock valued at $735,000 after purchasing an additional 14,060 shares during the period. Finally, Evolve Private Wealth LLC bought a new position in shares of Source Capital in the fourth quarter worth about $522,000. 13.15% of the stock is owned by institutional investors.

Source Capital Company Profile

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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