EFFINGHAM, Ill.—Donald J. Spring, the Chief Accounting Officer of Midland States Bancorp, Inc. (NASDAQ:MSBI), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Spring sold 689 shares of common stock on November 5, 2024, at an average price of $24.81 per share, totaling approximately $17,094.
Following this transaction, Spring retains ownership of 4,436 shares of Midland States Bancorp common stock. Additionally, he holds 800 Series A Preferred Depositary Shares and options to purchase 1,403 and 5,198 shares of common stock, exercisable at $28.59 and $28.43 per share, respectively. These options are subject to vesting conditions.
In other recent news, Midland States Bancorp had its stock price target raised to $27.00 from $26.00 by Piper Sandler, which maintained a neutral stance on the stock. This adjustment followed the bank's third-quarter results, which showcased a higher-than-expected net interest income and core fee income, leading to pre-provision net revenue surpassing predictions.
Despite an increase in nonperforming loans and substandard loans, these were seen as isolated issues within specific segments of the bank's portfolio. Piper Sandler has also revised upwards the earnings per share estimates for the fourth quarter of 2024 and the full year of 2025 to $0.73 and $2.70 respectively, reflecting positive expectations for net interest income and net interest margin.
In other updates, Midland States Bancorp announced the appointment of Travis Franklin, Executive Vice President and Chief Financial Officer of Heartland Dental, LLC, to its Board of Directors. Meanwhile, DA Davidson, Keefe, Bruyette & Woods, and Stephens have all reduced their price targets for the bank due to lowered expectations for net interest income and anticipated increases in credit costs, but maintained their ratings on the company's stock. These recent developments reflect a cautious perspective on the bank's financial outlook.
InvestingPro Insights
In light of Donald J. Spring's recent stock sale, it's worth examining some key financial metrics and insights for Midland States Bancorp (NASDAQ:MSBI) provided by InvestingPro.
As of the latest data, MSBI's market capitalization stands at $531 million, with a price-to-earnings (P/E) ratio of 10.84. This relatively low P/E ratio could suggest that the stock is undervalued compared to its earnings potential. Additionally, the company's price-to-book ratio of 0.75 indicates that the stock is trading below its book value, which may be of interest to value investors.
One of the standout features of MSBI is its dividend policy. According to InvestingPro Tips, the company has raised its dividend for 8 consecutive years and maintained dividend payments for 9 consecutive years. This commitment to shareholder returns is further emphasized by the current dividend yield of 5.06%, which is particularly attractive in the current market environment.
Despite these positive aspects, it's important to note that MSBI faces some challenges. An InvestingPro Tip highlights that the company suffers from weak gross profit margins, which could impact its overall profitability. Additionally, net income is expected to drop this year, which may explain the recent insider selling activity.
On a more positive note, MSBI has shown strong returns over the last month and three months, with price total returns of 13% and 17.19% respectively. This recent performance could indicate improving investor sentiment or operational improvements.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 9 more InvestingPro Tips available for MSBI, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.