Richard Bingham, a director at Midland States Bancorp (MSBI), recently added 4,000 shares. The buy increased his holdings by 22 percent, and came to a total cost of $100,000.
The company’s corporate council bought 2,000 shares, for just under $51,000, latest last year. Generally, Midland States Bancorp insiders have been regular and modest sellers of shares following option exercises over the past few years.
Insiders at the regional bank still own about 5 percent of shares.
The bank has traded flat over the past year, compared with an overall drop in large bank stocks. Midland saw a 20 percent jump in earnings, and a 5 percent increase in revenues.
The bank trades for about 7 times earnings, and shares go for just under book value. That’s a sign that the bank could be in for a bump if a larger bank company makes an acquisition offer.
Action to take: Besides being a value play with some growth behind it, today’s buyers can also get a 4.3 percent dividend yield. That’s an attractive payout while waiting for the sector to trend higher or for the bank to get bought out.
For traders, the July $30 calls, last carrying a bid/ask spread of about $1.95, offer mid-to-high double-digit returns on a continued rally in shares. Traders should use tight limit orders given the small size of option trading on this small-cap bank stock.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.