Berkshire Hills (BHLB) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: 2.95%
• Average Volume (3M): 432.32K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.92
• Revenue Growth: 15.55%
• EPS Growth: 401.99%
• Country: US
• Employees: 1,186
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.69
• Shares Outstanding: 46,303,000
• 10 Day Avg. Volume: 407,037
• 30 Day Avg. Volume: 432,320
• PEG Ratio: -1.88
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 10.02
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 2.31
• Enterprise Value/Gross Profit: 3.87
• Enterprise Value/Ebitda: 10.60
• 1Y Price Target: $25.99
• Price Target Upside: 6.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: $27.00 ▲(10.61% Upside)

Berkshire Hills Bancorp shows strong financial performance and positive earnings call sentiment, which are the most significant factors driving the score. The stock's low P/E ratio and attractive dividend yield add to its appeal. However, bearish technical indicators and legal challenges related to the merger pose risks. Overall, the company is well-positioned for future growth, but investors should be cautious of the current market momentum.

Berkshire Hills Business Overview & Revenue Model

Company Description

Berkshire Hills Bancorp, Inc. (BHLB) is a bank holding company based in Massachusetts that operates through its wholly-owned subsidiary, Berkshire Bank. The company primarily serves the banking needs of individuals, businesses, and municipalities across the New England and New York regions. Berkshire Hills offers a wide range of financial products and services including personal and commercial banking, wealth management, insurance, and mortgage lending, with a strong emphasis on community engagement and customer service.

How the Company Makes Money

Berkshire Hills generates revenue primarily through net interest income and non-interest income. Net interest income is derived from the difference between the interest earned on loans and securities and the interest paid on deposits and borrowings. The bank provides various loan products such as residential mortgages, commercial real estate loans, and consumer loans, which contribute significantly to its interest income. Non-interest income comes from fees for services, wealth management products, insurance services, and transaction-based income. Additionally, Berkshire Hills has established partnerships with local businesses and community organizations, enhancing its market presence and driving deposits and loan growth, which are crucial for its overall earnings.

Berkshire Hills Financial Statement Overview

Summary

Berkshire Hills has strong financial performance with consistent revenue growth, solid profitability margins, and efficient cash flow management. Minor concerns include asset fluctuations and investing cash outflows.

Income Statement

Berkshire Hills has demonstrated a solid financial performance with consistent revenue growth, despite some fluctuations. The company's TTM (Trailing-Twelve-Months) gross profit margin is healthy at 59.66%, and its net profit margin stands at 15.36%. The revenue growth rate of 7.68% from 2024 to TTM indicates a positive upward trajectory. Both EBIT and EBITDA margins improved significantly in TTM, showcasing operational efficiency. However, the company experienced a dip in EBIT margin in 2024, which needs monitoring.

Balance Sheet

The balance sheet of Berkshire Hills reveals a moderate debt-to-equity ratio of 0.57 in TTM, indicating a balanced leverage position. The return on equity is strong at 8.93%, reflecting effective utilization of equity capital. The equity ratio is robust at 9.96%, suggesting a stable capital structure. However, the total assets have shown a slight decrease over the years, which may warrant attention.

Cash Flow

The cash flow position of Berkshire Hills is commendable, with a free cash flow growth rate of 10.99% from 2024 to TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 1.32 in TTM suggests efficient conversion of profits into cash. Additionally, the free cash flow to net income ratio of 1.25 indicates healthy cash flow management. A slight concern is the high investing cash outflows, which may affect future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	695.76M	646.11M	619.08M	456.19M	419.37M	474.85M
Gross Profit	415.02M	359.76M	379.83M	402.53M	381.47M	305.97M
EBITDA	151.47M	91.10M	91.59M	128.53M	165.26M	-514.93M
Net Income	106.91M	61.00M	69.60M	92.53M	118.66M	-533.02M
Balance Sheet
Total Assets	12.01B	12.27B	12.43B	11.66B	11.55B	12.84B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.69B	2.23B	2.11B	3.51B	3.25B
Total Debt	684.60M	494.97M	568.29M	188.55M	176.38M	645.91M
Total Liabilities	10.82B	11.11B	11.42B	10.71B	10.37B	11.65B
Stockholders Equity	1.20B	1.17B	1.01B	954.06M	1.18B	1.19B
Cash Flow
Free Cash Flow	133.89M	120.64M	155.34M	109.24M	83.18M	220.43M
Operating Cash Flow	141.60M	125.21M	157.16M	110.74M	84.79M	227.64M
Investing Cash Flow	-656.26M	-317.25M	-284.46M	-1.26B	621.24M	641.10M
Financing Cash Flow	147.30M	117.21M	645.19M	207.69M	-636.10M	109.30M

Berkshire Hills Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHLB, the sentiment is Positive. The current price of 24.41 is below the 20-day moving average (MA) of 25.31, below the 50-day MA of 25.30, and below the 200-day MA of 26.79, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 53.32 is Neutral, neither overbought nor oversold. The STOCH value of 50.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BHLB.

Berkshire Hills Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOB	78 Outperform	$1.52B	27.21	5.54%	0.39%	10.13%	-50.08%
BHLB	77 Outperform	$1.13B	9.54	10.13%	2.95%	15.55%	401.99%
BY	77 Outperform	$1.24B	10.10	10.69%	1.44%	2.23%	-1.13%
QCRH	76 Outperform	$1.20B	10.71	11.36%	0.34%	-0.76%	-1.60%
BLX	76 Outperform	$1.65B	7.90	16.45%	5.56%	3.46%	12.88%
DCOM	73 Outperform	$1.21B	32.69	3.24%	3.62%	-3.08%	-45.24%
Sector *	68 Neutral	$17.46B	11.65	10.44%	3.86%	10.36%	1.15%

Berkshire Hills Corporate Events

Berkshire Hills and Brookline Announce Merger Formation

On August 6, 2025, Berkshire Hills Bancorp and Brookline Bancorp announced their merger, forming Beacon Financial Corporation, which will be listed on the NYSE under the ticker ‘BBT’. The merger, expected to close in Q3 2025, aims to create a strong financial institution with a broad footprint and a commitment to stakeholders, with the combined bank operating under the Beacon Bank brand.

The most recent analyst rating on (BHLB) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Berkshire Hills stock, see the BHLB Stock Forecast page.

Berkshire Hills Announces Quarterly Cash Dividend

On August 1, 2025, Berkshire Hills Bancorp, Inc. announced a quarterly cash dividend of $0.18 per common share, payable to shareholders on August 21, 2025. This decision reflects the company’s commitment to returning value to its shareholders and may influence investor sentiment positively.

The most recent analyst rating on (BHLB) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Berkshire Hills stock, see the BHLB Stock Forecast page.

Berkshire Hills Reports Strong Q2 2025 Financial Results

Berkshire Hills Bancorp, Inc. reported strong financial results for the second quarter of 2025, with a 36% year-over-year increase in operating earnings driven by revenue growth and reduced expenses. The company saw improvements in net interest margin and efficiency ratio, alongside growth in loans and deposits. The announcement highlighted Berkshire’s ongoing transformation program, recognition from TIME and Newsweek, and an upcoming merger with Brookline Bancorp, which is expected to enhance its market presence.

The most recent analyst rating on (BHLB) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Berkshire Hills stock, see the BHLB Stock Forecast page.

Berkshire Hills Approves Key Proposals at Annual Meeting

On May 21, 2025, Berkshire Hills Bancorp, Inc. held its annual stockholders meeting virtually, where several key proposals were approved. These included the issuance of common stock for the merger with Brookline Bancorp, an amendment to increase authorized shares, the 2025 Stock Option and Incentive Plan, election of directors, and the ratification of Crowe LLP as the accounting firm for 2025. The approval of these proposals indicates a strategic move to expand Berkshire’s market presence and enhance its operational capabilities, potentially impacting stakeholders positively by positioning the company for future growth and stability.

The most recent analyst rating on (BHLB) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Berkshire Hills stock, see the BHLB Stock Forecast page.

Berkshire Hills Prepares for Annual Meeting in May

On March 24, 2025, Berkshire Hills Bancorp filed a registration statement for its annual meeting scheduled for May 21, 2025. The statement included details about board meeting attendance in 2024, noting that most directors attended over 75% of meetings, except for Jeffrey W. Kip, who attended 67% and is not seeking re-election.

The most recent analyst rating on (BHLB) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Berkshire Hills stock, see the BHLB Stock Forecast page.

Berkshire Hills Faces ISS Opposition on Stock Plan

On March 24, 2025, Berkshire Hills Bancorp, Inc. filed a registration statement in preparation for its annual meeting on May 21, 2025, where stockholders will vote on the 2025 Stock Option and Incentive Plan. Institutional Shareholder Services (ISS) provided an unfavorable recommendation for the plan due to a higher shareholder value transfer than its benchmark. Berkshire aims to clarify and provide additional information to assist ISS in evaluating the plan. The company has outlined the status of its stock options and equity awards, which are contingent on a proposed merger with Brookline Bancorp, Inc. The board recommends stockholders vote in favor of the plan, which will cancel remaining shares under previous plans if approved.

The most recent analyst rating on (BHLB) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Berkshire Hills stock, see the BHLB Stock Forecast page.