Midland States Bancorp (NASDAQ:MSBI) Board of Directors Approves Share Buyback Plan

Key Points

• Board approved a $45.00 million share buyback, permitting repurchases of up to 8% of outstanding stock via open-market purchases, a move that signals management may view the shares as undervalued.
• The company declared a quarterly dividend of $0.32 (annualized $1.28) with a 4.6% yield
• Midland beat expectations this quarter with $0.79 EPS vs. $0.60 estimated and revenue of $81.1M, yet analysts maintain a consensus "Hold" rating and a $23.90 target price below the recent share price (~$27.79).

Midland States Bancorp (NASDAQ:MSBI - Get Free Report) announced that its Board of Directors has authorized a share buyback program on Wednesday, May 6th, RTT News reports. The company plans to buyback $45.00 million in shares. This buyback authorization allows the financial services provider to purchase up to 8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on MSBI. UBS Group set a $25.50 target price on shares of Midland States Bancorp in a report on Monday, January 26th. Wall Street Zen upgraded shares of Midland States Bancorp from a "sell" rating to a "hold" rating in a report on Friday, January 23rd. Piper Sandler raised their target price on shares of Midland States Bancorp from $25.50 to $28.00 and gave the stock a "neutral" rating in a report on Monday, April 27th. Weiss Ratings upgraded shares of Midland States Bancorp from a "sell (d+)" rating to a "hold (c)" rating in a report on Monday. Finally, Zacks Research upgraded shares of Midland States Bancorp from a "hold" rating to a "strong-buy" rating in a report on Tuesday, April 28th. One research analyst has rated the stock with a Strong Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, Midland States Bancorp has an average rating of "Hold" and a consensus target price of $23.90.

Midland States Bancorp Price Performance

NASDAQ:MSBI traded up $0.71 during trading hours on Wednesday, reaching $27.79. 216,385 shares of the company's stock were exchanged, compared to its average volume of 176,588. The company has a market capitalization of $576.09 million, a P/E ratio of 23.55 and a beta of 0.66. Midland States Bancorp has a 12 month low of $14.24 and a 12 month high of $28.38. The company has a quick ratio of 0.80, a current ratio of 0.78 and a debt-to-equity ratio of 0.71. The business's 50-day simple moving average is $22.95 and its two-hundred day simple moving average is $21.01.

Midland States Bancorp (NASDAQ:MSBI - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The financial services provider reported $0.79 EPS for the quarter, beating the consensus estimate of $0.60 by $0.19. The business had revenue of $81.10 million during the quarter, compared to the consensus estimate of $75.59 million. Midland States Bancorp had a net margin of 7.53% and a return on equity of 11.55%. Sell-side analysts expect that Midland States Bancorp will post 3.17 EPS for the current fiscal year.

Midland States Bancorp Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Friday, May 15th will be given a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 4.6%. The ex-dividend date is Friday, May 15th. Midland States Bancorp's dividend payout ratio is 108.47%.

Insider Activity at Midland States Bancorp

In other news, Director Travis Franklin purchased 9,400 shares of Midland States Bancorp stock in a transaction that occurred on Tuesday, May 5th. The stock was acquired at an average price of $26.49 per share, for a total transaction of $249,006.00. Following the transaction, the director owned 9,400 shares in the company, valued at $249,006. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 8.57% of the company's stock.

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.

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