This Insider Has Just Sold Shares In Pulse Biosciences

Anyone interested in Pulse Biosciences, Inc. (NASDAQ:PLSE) should probably be aware that the CTO & Director, Darrin Uecker, recently divested US$486k worth of shares in the company, at an average price of US$16.19 each. The eyebrow raising move amounted to a reduction of 20% in their holding.

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Pulse Biosciences Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Co-Chairman Robert Duggan for US$1.7m worth of shares, at about US$17.18 per share. That means that an insider was happy to buy shares at above the current price of US$15.05. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Robert Duggan was the only individual insider to buy shares in the last twelve months.

Robert Duggan bought 156.71k shares over the last 12 months at an average price of US$17.23. 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!

View our latest analysis for Pulse Biosciences

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Does Pulse Biosciences Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Pulse Biosciences insiders own about US$741m worth of shares (which is 73% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Pulse Biosciences Insiders?

An insider sold Pulse Biosciences shares recently, but they didn't buy any. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Pulse Biosciences you should be aware of, and 1 of them is concerning.

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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.