Source Capital (NYSE:SOR) Shares Pass Below 50 Day Moving Average - Time to Sell?

Key Points

• Technical signal: Source Capital's shares crossed below their 50-day moving average during Thursday trading — last trade $46.51, 50-day MA $46.45, 200-day MA $46.81 and intraday low $46.05.
• Dividend announced: The company declared a monthly dividend of $0.2083 per share (ex-dividend date Aug 13, payable Aug 31), implying a ~5.4% annualized yield.
• Institutional activity: Several firms recently added to or initiated positions (DKM Wealth, Align Financial, Diversified Management, Hara Capital, First Trust), with institutions owning about 13.15% of the stock.

Source Capital, Inc. (NYSE:SOR - Get Free Report)'s stock price crossed below its 50 day moving average during trading on Thursday . The stock has a 50 day moving average of $46.45 and traded as low as $46.05. Source Capital shares last traded at $46.51, with a volume of 40,530 shares traded.

Source Capital Trading Up 1.2%

The firm has a 50-day moving average of $46.45 and a 200 day moving average of $46.81.

Source Capital Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Monday, August 31st. Investors of record on Thursday, August 13th will be given a dividend of $0.2083 per share. The ex-dividend date of this dividend is Thursday, August 13th. This represents a c) annualized dividend and a yield of 5.4%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. DKM Wealth Management Inc. boosted its position in Source Capital by 3.2% during the fourth quarter. DKM Wealth Management Inc. now owns 294,862 shares of the financial services provider's stock valued at $13,493,000 after purchasing an additional 9,225 shares during the last quarter. Align Financial LLC acquired a new position in Source Capital during the fourth quarter valued at approximately $7,006,000. Diversified Management Inc. acquired a new position in Source Capital during the fourth quarter valued at approximately $5,344,000. Hara Capital LLC boosted its position in Source Capital by 1.7% during the third quarter. Hara Capital LLC now owns 109,344 shares of the financial services provider's stock valued at $4,923,000 after purchasing an additional 1,807 shares during the last quarter. Finally, First Trust Advisors LP boosted its position in Source Capital by 5.4% during the third quarter. First Trust Advisors LP now owns 72,869 shares of the financial services provider's stock valued at $3,281,000 after purchasing an additional 3,717 shares during the last quarter. 13.15% of the stock is owned by institutional investors and hedge funds.

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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