1st Source (SRCE) | News Based Sentiment Analysis

• On October 1, 2025, Zacks Research downgraded 1st Source Corporation (NASDAQ:SRCE) from a "strong-buy" to a "hold" rating, signaling a more cautious outlook for the stock. This downgrade, coupled with a consensus rating of "Hold" and an average target price of $72.00, suggests investors should temper expectations for significant near-term gains.
• Also on October 1, 2025, KBW analyst Damon Delmonte maintained a "hold" rating for 1st Source Corp. (SRCE.US) with a target price of $69.00, indicating a stable but unexciting outlook. This consistent rating from KBW reinforces the cautious sentiment expressed by Zacks Research.
• Looking ahead to October 23, 2025, 1st Source Corporation is scheduled to report its Q3 2025 earnings after market close. Analysts currently forecast an EPS of $1.59 for the quarter and a full-year EPS of $6.22, providing key benchmarks for investors to assess the company's performance.
• Fifth Third Bancorp reduced its position in 1st Source Corporation by 5.4% in the second quarter, selling 331 shares and reducing its holdings to 5,833 shares valued at $362,000 as of October 1, 2025. This institutional selling pressure, while not drastic, indicates some investors are reassessing their positions in the company.
• Effective October 1, 2025, 1st Source Corporation announced an executive succession plan, with Christopher assuming the roles of President, Chairman, and/or CEO. This transition follows Christopher’s 50 years of leadership experience with the corporation, ensuring continuity and stability at the top.

The Investment Story: October brought a mixed bag for 1st Source, with analyst downgrades and institutional selling offset by a smooth leadership transition and the upcoming Q3 earnings report. The overall narrative suggests a period of stability rather than rapid growth.

What It Means for Investors: The downgrades and reduced institutional holdings suggest investors should approach 1st Source with caution. While the leadership transition provides stability, the market's current sentiment appears neutral, and the upcoming earnings report will be crucial in determining the company's trajectory.

Looking Ahead: Investors should closely monitor the Q3 2025 earnings report on October 23, 2025, paying particular attention to whether the company meets the consensus EPS forecast of $1.59. Any deviation from this forecast could significantly impact investor sentiment.

The Bottom Line: 1st Source Corporation appears to be in a holding pattern. While not a bad investment, the recent downgrades and institutional selling suggest limited upside potential in the near term. Investors should await the Q3 earnings report before making any significant decisions.