We'd be surprised if Eastern Bankshares, Inc. (NASDAQ:EBC) shareholders haven't noticed that the President & CEO of Eastern Bank Foundation, Nancy Stager, recently sold US$223k worth of stock at US$12.08 per share. Equally important, that sale actually reduced their holding by a full 54% which hardly makes us feel bullish about the stock.

Check out our latest analysis for Eastern Bankshares

The Last 12 Months Of Insider Transactions At Eastern Bankshares

Notably, that recent sale by Nancy Stager is the biggest insider sale of Eastern Bankshares shares that we've seen in the last year. That means that even when the share price was below the current price of US$13.05, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 54% of Nancy Stager's stake.

Eastern Bankshares insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Eastern Bankshares

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Eastern Bankshares insiders own about US$34m worth of shares. That equates to 1.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Eastern Bankshares Insiders?

Insiders sold Eastern Bankshares shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Eastern Bankshares. In terms of investment risks, we've identified 2 warning signs with Eastern Bankshares and understanding them should be part of your investment process.

Of course Eastern Bankshares may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.