Effingham, IL—Robert F. Schultz, a director at Midland States Bancorp, Inc. (NASDAQ:MSBI), recently reported the sale of 4,262 shares of common stock. The shares were sold at an average price of $27.00 each, resulting in a total transaction value of approximately $115,081. Following this sale, Schultz holds various stock positions indirectly through entities such as Red Bird Investors, LLC, Summit Investors, LLP, and J.M. Schultz Investment, LLC.
The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission, highlighting Schultz's ongoing involvement and investment strategies with the bank. Midland States Bancorp, headquartered in Effingham, Illinois, operates as a state commercial bank, offering a range of financial services.
Investors often keep a close eye on insider transactions like these, as they can provide insights into the confidence levels of those closest to the company's operations.
In other recent news, Midland States Bancorp's third-quarter financial performance led to a revision in the stock price target by Piper Sandler, raising it to $27.00 from the previous $26.00, while maintaining a neutral stance. The change was driven by the bank's higher-than-expected pre-provision net revenue (PPNR), resulting from increased net interest income (NII) and core fee income. Despite a slowdown in nonperforming loans (NPLs) and a concentration of nonperforming assets (NCOs) in certain portfolios, the analyst expressed optimism.
The bank's long-term profitability prospects and the need for consistent credit improvement were highlighted by the analyst. Earnings per share (EPS) estimates for the fourth quarter of 2024 and the full year of 2025 were revised upwards to $0.73 and $2.70 respectively, reflecting positive expectations for net interest income (NII) and net interest margin (NIM) following the bank's third-quarter results.
In addition to Piper Sandler's revision, Midland States Bancorp has seen several updates from financial analysts. The bank announced the appointment of Travis Franklin, Executive Vice President and Chief Financial Officer of Heartland Dental, LLC, to its Board of Directors. Analyst firms DA Davidson, Keefe, Bruyette & Woods, and Stephens revised their price targets for the bank due to lowered expectations for net interest income and anticipated increases in credit costs, while maintaining their ratings on the company's stock. These are the latest developments for Midland States Bancorp.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Midland States Bancorp's financial position and market performance, providing context to Robert F. Schultz's stock sale.
The bank's stock has shown strong momentum recently, with InvestingPro data revealing a 22.02% price total return over the past month and an impressive 27.8% return over the last three months. This upward trend might have influenced Schultz's decision to sell a portion of his holdings.
Despite the recent stock sale by the director, Midland States Bancorp maintains a solid dividend profile. An InvestingPro Tip highlights that the company has raised its dividend for 8 consecutive years, demonstrating a commitment to shareholder returns. Currently, the stock offers a dividend yield of 4.68%, which may be attractive to income-focused investors.
From a valuation perspective, Midland States Bancorp trades at a P/E ratio of 11.59, suggesting it may be undervalued compared to industry peers. This relatively low valuation could indicate potential upside for the stock, despite the insider sale.
It's worth noting that InvestingPro offers 9 additional tips for Midland States Bancorp, providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects.
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