Midland States Bancorp (NASDAQ:MSBI) Releases Quarterly Earnings Results, Beats Estimates By $0.19 EPS

Key Points

• Quarterly beat: Midland States reported EPS of $0.79 versus $0.60 expected (beats by $0.19) and revenue of $81.1M versus $75.6M estimated, with a net margin of 6.62% and ROE of 10.47%.
• Dividend but sustainability concerns: The bank paid a $0.32 quarterly dividend (annualized $1.28, 5.5% yield) while its dividend payout ratio is 126.73%, indicating the payout may be unsustainable.
• Market/analyst view: Analysts’ consensus is "Reduce" with an average price target of $23.00 versus the current share price near $23.39; the company has a market cap of about $502M and ~61% institutional ownership.

Midland States Bancorp (NASDAQ:MSBI - Get Free Report) released its quarterly earnings results on Thursday. The financial services provider reported $0.79 EPS for the quarter, topping analysts' consensus estimates of $0.60 by $0.19, FiscalAI reports. Midland States Bancorp had a net margin of 6.62% and a return on equity of 10.47%. The business had revenue of $81.10 million for the quarter, compared to analyst estimates of $75.59 million.

Midland States Bancorp Price Performance

Shares of MSBI stock opened at $23.39 on Friday. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 0.82. Midland States Bancorp has a twelve month low of $14.24 and a twelve month high of $24.72. The company has a market cap of $502.18 million, a P/E ratio of 23.16 and a beta of 0.57. The business has a fifty day simple moving average of $22.51 and a 200 day simple moving average of $20.47.

Midland States Bancorp Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, February 20th. Shareholders of record on Friday, February 13th were issued a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 5.5%. The ex-dividend date of this dividend was Friday, February 13th. Midland States Bancorp's dividend payout ratio (DPR) is currently 126.73%.

Insider Activity at Midland States Bancorp

In other news, COO Kyle Owen Mooney sold 2,808 shares of the stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $22.67, for a total value of $63,657.36. Following the completion of the transaction, the chief operating officer owned 14,207 shares of the company's stock, valued at approximately $322,072.69. This represents a 16.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 8.57% of the company's stock.

Hedge Funds Weigh In On Midland States Bancorp

A number of institutional investors have recently added to or reduced their stakes in MSBI. State Street Corp lifted its stake in Midland States Bancorp by 10.1% in the 4th quarter. State Street Corp now owns 682,862 shares of the financial services provider's stock valued at $14,456,000 after purchasing an additional 62,874 shares during the last quarter. AQR Capital Management LLC grew its stake in shares of Midland States Bancorp by 38.1% during the second quarter. AQR Capital Management LLC now owns 540,997 shares of the financial services provider's stock worth $9,370,000 after buying an additional 149,175 shares during the last quarter. Jacobs Levy Equity Management Inc. increased its holdings in shares of Midland States Bancorp by 97.1% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 238,364 shares of the financial services provider's stock worth $5,046,000 after buying an additional 117,422 shares in the last quarter. Bank of America Corp DE increased its holdings in shares of Midland States Bancorp by 9.0% during the third quarter. Bank of America Corp DE now owns 211,795 shares of the financial services provider's stock worth $3,630,000 after buying an additional 17,442 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in shares of Midland States Bancorp by 10.3% in the 4th quarter. Goldman Sachs Group Inc. now owns 174,098 shares of the financial services provider's stock valued at $3,686,000 after acquiring an additional 16,301 shares during the last quarter. 60.93% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

MSBI has been the subject of a number of recent research reports. UBS Group set a $25.50 price objective on shares of Midland States Bancorp in a report on Monday, January 26th. DA Davidson raised their target price on shares of Midland States Bancorp from $23.00 to $24.00 and gave the stock a "neutral" rating in a report on Monday, January 26th. Zacks Research downgraded shares of Midland States Bancorp from a "strong-buy" rating to a "hold" rating in a research report on Friday, February 20th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Midland States Bancorp in a research note on Friday, March 27th. Finally, Wall Street Zen raised Midland States Bancorp from a "sell" rating to a "hold" rating in a research report on Friday, January 23rd. Five analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $23.00.

About Midland States Bancorp

Midland States Bancorp, Inc is a bank holding company headquartered in Effingham, Illinois, that oversees Midland States Bank, a community-focused financial institution. Through its subsidiary, the company provides a full range of commercial and retail banking services designed to meet the needs of individuals, small and mid-sized businesses, and nonprofit organizations. Its branch network spans key markets in Illinois, Missouri and Florida, where it emphasizes relationship-driven banking and local decision-making.

The company's offerings include traditional deposit accounts, business and commercial lending, treasury and cash management services, mortgage financing and home equity products.