Berkshire Hills Bancorp, Inc. (NYSE:BHLB) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Berkshire Hills Bancorp Insider Transactions Over The Last Year

The insider, Baye Adofo-Wilson, made the biggest insider sale in the last 12 months. That single transaction was for US$224k worth of shares at a price of US$22.29 each. That means that even when the share price was below the current price of US$26.65, 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 80% of Baye Adofo-Wilson's stake.

Over the last year, we can see that insiders have bought 9.10k shares worth US$187k. But insiders sold 13.67k shares worth US$303k. Over the last year we saw more insider selling of Berkshire Hills Bancorp shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Berkshire Hills Bancorp Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Berkshire Hills Bancorp insiders own 1.3% of the company, worth about US$15m. 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 Do The Berkshire Hills Bancorp Insider Transactions Indicate?

The fact that there have been no Berkshire Hills Bancorp insider transactions recently certainly doesn't bother us. Still, the insider transactions at Berkshire Hills Bancorp in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Berkshire Hills Bancorp. For example - Berkshire Hills Bancorp has 3 warning signs we think you should be aware of.

But note: Berkshire Hills Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.