EFFINGHAM, IL – Midland States Bancorp, Inc. (NASDAQ:MSBI) director Jeffrey M. McDonnell has recently made a significant purchase of the company's common stock, according to the latest filings with the Securities and Exchange Commission. On June 13, 2024, McDonnell acquired 2,290 shares of Midland States Bancorp at a price of $21.8 per share, totaling approximately $49,922.
McDonnell, who serves on the board of directors for the Illinois-based financial institution, completed the transaction under indirect ownership through the Jeffrey M. McDonnell Revocable Trust UA. Following this acquisition, the trust now holds a total of 24,245 shares of the company's common stock. The filing included a footnote indicating that McDonnell disclaims beneficial ownership of the securities to the extent of his pecuniary interest, and this report should not be seen as an admission of beneficial ownership for all reported shares.
In addition to the purchase of common stock, the filing also disclosed holdings in derivative securities, specifically common stock equivalents and restricted stock units, which are economically equivalent to 13,980.2816 and 6,193 shares of common stock, respectively. These derivatives are direct ownerships, but details regarding conversions or exercises were footnoted without further elaboration in the document.
Investors often monitor insider transactions such as these for insights into how corporate executives perceive the financial health and future prospects of their companies. Such purchases can reflect a director's confidence in the company's performance and outlook.
Midland States Bancorp, with its headquarters at 1201 Network Centre Drive in Effingham, Illinois, operates as a state commercial bank and provides a range of financial services to its customers. The company's business phone is listed as (217) 342-2141.
The transaction was executed with the power of attorney granted to Douglas J. Tucker, as disclosed in an accompanying document, which empowers Tucker to act on behalf of McDonnell for SEC filings related to Section 16 of the Securities Exchange Act of 1934.
For further information and details regarding these transactions, interested parties can refer to the full SEC Form 4 filing.
In other recent news, Midland States Bancorp has been a topic of discussion among various investment firms. The company has reported mixed results in its recent earnings, with pre-provision net revenue (PPNR) trends showing potential, but challenges in net interest income (NII) and credit costs prompting adjustments to its financial outlook. Analysts from DA Davidson, Keefe, Bruyette & Woods, Piper Sandler, and Stephens have all reduced their price targets for the company, citing factors such as an increase in non-performing loans (NPLs) and the need for higher loan loss provisions.
In addition to its financial performance, Midland States Bancorp has also announced the appointment of Travis Franklin to its Board of Directors. Franklin, who currently serves as Executive Vice President and Chief Financial Officer of Heartland Dental, LLC, brings a wealth of experience in business management and finance to the board.
These developments reflect the evolving circumstances of Midland States Bancorp. While the company faces challenges, it is also making strategic moves to strengthen its position. Despite the lowered stock price targets, analysts acknowledge the company's potential for recovery and growth.
InvestingPro Insights
Midland States Bancorp, Inc. (MSBI) has shown a blend of promising and challenging financial metrics in recent times. An InvestingPro Tip highlights that the company has raised its dividend for 8 consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, it has maintained dividend payments for 9 consecutive years, which could be a sign of financial stability and reliability in terms of income for investors.
On the data front, the company's Market Cap stands at a modest $467.87M, and it sports an attractive P/E Ratio of 7.97, indicating that the stock may be undervalued compared to earnings. Moreover, the Dividend Yield as of the latest data is quite high at 5.69%, which could be enticing for income-focused investors.
However, there are cautionary signals as well. Revenue has seen a decline of 11.87% over the last twelve months as of Q1 2024, which may suggest headwinds in the company's operations or competitive landscape. Additionally, 4 analysts have revised their earnings expectations downwards for the upcoming period, which could imply potential challenges ahead.
For investors seeking a deeper dive into Midland States Bancorp's financials and future outlook, more InvestingPro Tips are available at https://www.investing.com/pro/MSBI. Currently, there are additional tips listed in InvestingPro that could provide further insights into the company's performance and prospects.
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