Form 4: Midland States Bancorp CEO Jeffrey Ludwig Increases Stake Through Employee Stock Purchase Plan
Insider Transaction Report
Jeffrey G. Ludwig, President and CEO of Midland States Bancorp, Inc., acquired 1,615 shares of common stock at $15.48 per share through the company's Employee Stock Purchase Plan, increasing his direct beneficial ownership to 361,249.432 shares.
Summary
- Jeffrey G. Ludwig, President & CEO and Director of Midland States Bancorp, Inc. (MSBI), acquired 1,615 shares of common stock on June 30, 2025.
- The shares were acquired at a price of $15.48 per share through the Issuer's Employee Stock Purchase Plan (ESPP).
- The ESPP determines the purchase price as the lower of 90% of the fair market value of the Issuer's shares on the first day of the calendar quarter or the closing price of the shares on the last day of the quarter.
- Following this transaction, Ludwig directly beneficially owns 361,249.432 shares of common stock.
- Ludwig also indirectly beneficially owns 11,569 shares through JQ Properties, disclaiming beneficial ownership except to the extent of his pecuniary interest.
- Ludwig holds various stock options, including 11,790 options at $18.16 (granted 12/06/2010), 16,800 options at $23 (granted 11/03/2015), 8,383 options at $28.59 (granted 11/16/2016), and 52,291 options at $28.43 (granted 10/31/2022), all vesting in four equal annual installments beginning one year after their respective grant dates.
Sentiment
Score: 7
Explanation: The acquisition of shares by a key executive, even through an ESPP, generally indicates confidence in the company's future, which is a positive sentiment. The transaction size is relatively small compared to total holdings, but it represents an accumulation, not a sale.
Positives
- An insider, the President & CEO, increased direct ownership in the company, which can signal confidence in future performance.
- The acquisition was made through an Employee Stock Purchase Plan (ESPP), indicating participation in a broad-based employee benefit program.
Future Outlook
This Form 4 filing does not contain forward-looking statements or guidance regarding the company's future performance or strategic direction.
Industry Context
Insider purchases, particularly by high-ranking executives like a President and CEO, are often viewed by the market as a positive signal, suggesting management's confidence in the company's valuation and future prospects. While this specific transaction is part of an Employee Stock Purchase Plan, it still represents an increase in the executive's personal stake in the company, aligning their interests further with shareholders.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Power of Attorney Grant | Jeffrey G. Ludwig granted a Power of Attorney to Nathan D. Sturycz and Stephanie Gurgel, and their designees, to prepare and file Section 16 forms (Forms 3, 4, and 5) on his behalf with the SEC. This streamlines compliance with insider reporting requirements. | 02/04/2025 | This is a standard corporate governance practice that ensures timely and accurate filing of required insider transaction reports, reducing administrative burden on the executive and ensuring regulatory compliance. |
Stakeholder Impact
- Shareholders may view the insider purchase as a positive signal of management's belief in the company's value and future prospects.
- Employees participating in the ESPP benefit from a discounted share purchase mechanism.
Key Dates
| Date | Description |
|---|---|
| 12/06/2010 | Grant date for 11,790 stock options at $18.16, vesting in four equal annual installments. |
| 11/03/2015 | Grant date for 16,800 stock options at $23, vesting in four equal annual installments. |
| 11/16/2016 | Grant date for 8,383 stock options at $28.59, vesting in four equal annual installments. |
| 10/31/2022 | Grant date for 52,291 stock options at $28.43, vesting in four equal annual installments. |
| 02/04/2025 | Date of Power of Attorney granted by Jeff Ludwig to Nathan D. Sturycz and Stephanie Gurgel for Section 16 filings. |
| 06/30/2025 | Transaction date for the acquisition of 1,615 shares of common stock. |
| 07/01/2025 | Signature date for the Form 4 filing by Jeffrey G. Ludwig and his attorney-in-fact. |
Keywords
Midland States Bancorp, MSBI, Jeffrey G. Ludwig, Insider Trading, Form 4, SEC Filing, Stock Acquisition, Employee Stock Purchase Plan, ESPP, Common Stock, Beneficial Ownership, Stock Options, Corporate Governance
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