Berkshire Hills Bancorp Inc. (NYSE: BHLB) Volatility Spurs A Quest For Clarity


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Berkshire Hills Bancorp Inc. (NYSE:BHLB). The institutional investor has increased its shareholding in the Financial company by 1.34% to 4.74 million shares with purchase of 62735.0 shares. This fresh investment now brings its stake to 9.44% valued currently at $51.26 million. In addition, SSgA Funds Management, Inc. raised its holdings by 92135.0 to 1.61 million shares. And Clark Capital Management Group, I… has lifted its position to 1.51 million shares – to 1.51 million shares.

    With over 0.52 million Berkshire Hills Bancorp Inc. (BHLB) shares trading Thursday and a closing price of $10.04 on the day, the dollar volume was approximately $5.18 million. The shares have shown a negative weekly performance of -6.34% and its price on 07/02/20 lost nearly -1.57%. Currently, there are 50.20M common shares owned by the public and among those 47.68M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: Several analysts who have offered their price forecasts for BHLB have a consensus price objective of $13.60. The analysts have set the share’s price value over the next 12 months at a high of $16.50 and a low of $10.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Berkshire Hills Bancorp Inc. stock is 3.20 for the next 12 months. The average price target is 26.18% above its last price level and an upside to the estimated low will see the stock lose -0.4% over that period. But an upside of 39.15% will see the stock hit the forecast high price target while mean target price for the stock is $14.00.

    Insiders at the company have transacted a total of 54 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 40 of these insider trades were purchases, accounting for 1,486,748 shares. Insider sales of the common stock occurred on 14 occasions, with total insider shares sold totaling 19,930 shares.

    The top 3 mutual fund holders in Berkshire Hills Bancorp Inc. are iShares Core S&P Small Cap ETF, DFA US Small Cap Value Portfolio, and Vanguard Total Stock Market Index. iShares Core S&P Small Cap ETF owns 2.56 million shares of the company’s stock, all valued at over $27.7 million. The company bought an additional 1135.0 shares recently to bring their total holdings to about 5.10% of the shares outstanding. DFA US Small Cap Value Portfolio has total holdings of 1.44 million shares valued at over $15.56 million and representing 2.87% of the shares outstanding. Vanguard Total Stock Market Index sold 25267.0 shares to bring its total holdings to over 1.25 million shares at a value of $13.58 million. Vanguard Total Stock Market Index now owns shares totaling to 2.50% of the shares outstanding.

    Shares of Berkshire Hills Bancorp Inc. (NYSE: BHLB) opened at $10.56, up $0.36 from a prior closing price of $10.20. However, the script later closed the day at $10.04, down -1.57%. The company’s stock has a 5-day price change of -6.34% and -31.51% over the past three months. BHLB shares are trading -69.46% year to date (YTD), with the 12-month market performance down to -67.33% lower. It has a 12-month low price of $9.15 and touched a high of $33.72 over the same period. Currently, 0.52 million shares have been traded, compared to an average intraday trading volume of 579.83K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -12.67%, -17.54%, and -57.24% respectively.

    Institutional ownership of Berkshire Hills Bancorp Inc. (NYSE: BHLB) shares accounts for 81.30% of the company’s 50.20M shares outstanding. Mutual fund holders own 32.19%, while other institutional holders and individual stakeholders account for 46.55% and 10.47% respectively.

    It has a market capitalization of $511.94M and a beta (3y monthly) value of 1.33. The stock’s trailing 12-month PE ratio is 7.87, while the earnings-per-share (ttm) stands at $1.28. The company has a PEG of 0.79 and a debt-to-equity ratio of0.06. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.43% over the week and 7.23% over the month.

    Analysts forecast that Berkshire Hills Bancorp Inc. (BHLB) will achieve an EPS of -$0.19 for the current quarter, $0.17 for the next quarter and $0.89 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.98 while analysts give the company a high EPS estimate of $0.11. Comparatively, EPS for the current quarter was $0.65 a year ago. Earnings per share for the fiscal year are expected to decrease by -13.10%, and 212.70% over the next financial year. EPS should grow at an annualized rate of 10.00% over the next five years, compared to 8.40% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate Berkshire Hills Bancorp Inc. (BHLB) as a “Hold” at a consensus score of 3.20. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 3 of the 5 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the BHLB, a number of firms have released research notes about the stock. Piper Sandler stated their Overweight rating for the stock in a research note on June 12, 2020. DA Davidson coverage for the Berkshire Hills Bancorp Inc. (BHLB) stock in a research note released on May 06, 2020 offered a Neutral rating with a price target of $14. Compass Point was of a view on July 24, 2019 that the stock is Neutral, while DA Davidson gave the stock Buy rating on July 12, 2019 $36. Sandler O’Neill on their part issued Hold rating on July 02, 2019.


    Please enter your comment!
    Please enter your name here