Keep An Eye On Pulz Electronics As Insider Stock Selling Hits ₹50m

While Pulz Electronics Limited (NSE:PULZ) shareholders have enjoyed a good week with stock up 10%, they need remain vigilant. Even though stock prices were relatively low, insiders elected to sell ₹50m worth of stock in the last year, which could indicate some expected downturn.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Pulz Electronics

Pulz Electronics Insider Transactions Over The Last Year

The MD & Director, Anirvan Ghose, made the biggest insider sale in the last 12 months. That single transaction was for ₹6.4m worth of shares at a price of ₹176 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of ₹104. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Anirvan Ghose.

Anirvan Ghose sold a total of 404.00k shares over the year at an average price of ₹124. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Pulz Electronics insiders own 70% of the company, worth about ₹802m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Pulz Electronics Tell Us?

It doesn't really mean much that no insider has traded Pulz Electronics shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Pulz Electronics insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Pulz Electronics has 4 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.