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Great news for Brookline Bancorp, Inc. (NASDAQ:BRKL): Insiders acquired stock in large numbers last year

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Brookline Bancorp, Inc. (NASDAQ:BRKL), it sends a favourable 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.

Check out our latest analysis for Brookline Bancorp

Brookline Bancorp Insider Transactions Over The Last Year

Notably, that recent sale by David Chapin is the biggest insider sale of Brookline Bancorp shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$13.29, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 13% of David Chapin's holding.

Over the last year, we can see that insiders have bought 21.24k shares worth US$270k. On the other hand they divested 15.00k shares, for US$196k. In the last twelve months there was more buying than selling by Brookline Bancorp insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Brookline Bancorp Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at Brookline Bancorp. In that time, Independent Director David Chapin dumped US$196k worth of shares. On the other hand we note insiders bought US$133k worth of shares. Generally this level of net selling might be considered a bit bearish.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Brookline Bancorp insiders own 3.1% of the company, worth about US$32m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Brookline Bancorp Insiders?

The insider sales have outweighed the insider buying, at Brookline Bancorp, in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So the recent selling doesn't worry us too much. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Brookline 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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