Midland States Bancorp (NASDAQ:MSBI) Shares Gap Up After Strong Earnings

Key Points

• Q4 beat and stock reaction: Midland States Bancorp reported $0.79 EPS vs. $0.60 expected and $81.1M revenue vs. $75.59M expected, prompting the shares to gap up from $23.39 to an open of $25 and last trading around $24.52.
• High dividend yield but risky payout: The board paid a $0.32 quarterly dividend (annualized $1.28) for a 5.3% yield, while the dividend payout ratio is an elevated 126.73%, suggesting potential sustainability concerns.
• Cautious analyst stance: Most analysts rate the stock a Hold (five Holds, one Sell) with a MarketBeat average target of $23.00, below the recent share price, implying limited analyst upside despite the earnings beat.

Midland States Bancorp, Inc. (NASDAQ:MSBI - Get Free Report)'s stock price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $23.39, but opened at $25.00. Midland States Bancorp shares last traded at $24.5170, with a volume of 34,190 shares trading hands.

The financial services provider reported $0.79 earnings per share for the quarter, beating the consensus estimate of $0.60 by $0.19. The firm had revenue of $81.10 million for the quarter, compared to analysts' expectations of $75.59 million. Midland States Bancorp had a net margin of 6.62% and a return on equity of 10.47%.

Midland States Bancorp Dividend Announcement

The business also recently declared 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 annualized dividend and a yield of 5.3%. The ex-dividend date of this dividend was Friday, February 13th. Midland States Bancorp's dividend payout ratio is currently 126.73%.

Analyst Upgrades and Downgrades

MSBI has been the topic of several research analyst reports. UBS Group set a $25.50 price target on shares of Midland States Bancorp in a report on Monday, January 26th. Zacks Research cut shares of Midland States Bancorp from a "strong-buy" rating to a "hold" rating in a report on Friday, February 20th. Wall Street Zen raised shares of Midland States Bancorp from a "sell" rating to a "hold" rating in a report on Friday, January 23rd. DA Davidson increased their price target on shares of Midland States Bancorp from $23.00 to $24.00 and gave the company a "neutral" rating in a report on Monday, January 26th. Finally, Piper Sandler increased their price target on shares of Midland States Bancorp from $23.00 to $25.50 and gave the company a "neutral" rating in a report on Monday, January 26th. Five research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Midland States Bancorp has an average rating of "Reduce" and an average target price of $23.00.

Insider Activity

In other Midland States Bancorp news, COO Kyle Owen Mooney sold 2,808 shares of the stock in a transaction that occurred on Wednesday, January 28th. The shares were sold at an average price of $22.67, for a total transaction of $63,657.36. Following the transaction, the chief operating officer owned 14,207 shares in the company, valued at $322,072.69. This represents a 16.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 8.57% of the stock is currently owned by insiders.

Institutional Trading of Midland States Bancorp

Large investors have recently made changes to their positions in the company. Amundi boosted its position in shares of Midland States Bancorp by 39.4% during the 1st quarter. Amundi now owns 2,194 shares of the financial services provider's stock worth $38,000 after acquiring an additional 620 shares in the last quarter. CANADA LIFE ASSURANCE Co raised its stake in shares of Midland States Bancorp by 33.1% during the fourth quarter. CANADA LIFE ASSURANCE Co now owns 2,022 shares of the financial services provider's stock valued at $43,000 after acquiring an additional 503 shares during the last quarter. CIBC Private Wealth Group LLC bought a new position in shares of Midland States Bancorp during the third quarter valued at $46,000. Quadrant Capital Group LLC raised its stake in shares of Midland States Bancorp by 302.7% during the fourth quarter. Quadrant Capital Group LLC now owns 4,599 shares of the financial services provider's stock valued at $97,000 after acquiring an additional 3,457 shares during the last quarter. Finally, Daytona Street Capital LLC bought a new position in shares of Midland States Bancorp during the fourth quarter valued at $107,000. Institutional investors and hedge funds own 60.93% of the company's stock.

Midland States Bancorp Price Performance

The company's 50 day moving average price is $22.51 and its 200-day moving average price is $20.47. The stock has a market cap of $522.79 million, a P/E ratio of 24.28 and a beta of 0.57. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 0.82.

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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