Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Berkshire Hills Bancorp, Inc. (NYSE:BHLB), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Berkshire Hills Bancorp Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Mary Callahan bought US$357k worth of shares at a price of US$19.90 per share. So it's clear an insider wanted to buy, at around the current price, which is US$21.59. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Berkshire Hills Bancorp share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 29.60k shares for US$598k. On the other hand they divested 13.67k shares, for US$303k. Overall, Berkshire Hills Bancorp insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Berkshire Hills Bancorp Have Sold Stock Recently

There was substantially more insider selling, than buying, of Berkshire Hills Bancorp shares over the last three months. In that time, insiders dumped US$244k worth of shares. On the flip side, President Nitin Mhatre spent US$24k on purchasing shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Berkshire Hills Bancorp insiders own 1.3% of the company, worth about US$12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Berkshire Hills Bancorp Tell Us?

The insider sales have outweighed the insider buying, at Berkshire Hills Bancorp, in the last three months. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 4 warning signs with Berkshire Hills Bancorp and understanding these should be part of your investment process.

Of course Berkshire Hills Bancorp 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.