Who Has Been Buying Pulse Biosciences, Inc. (NASDAQ:PLSE) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Pulse Biosciences, Inc. (NASDAQ:PLSE).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Pulse Biosciences

Pulse Biosciences Insider Transactions Over The Last Year

The Independent Director Mahkam Zanganeh made the biggest insider purchase in the last 12 months. That single transaction was for US$56k worth of shares at a price of US$7.01 each. We do like to see buying, but this purchase was made at well below the current price of US$32.21. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Mahkam Zanganeh purchased 9.14k shares over the year. The average price per share was US$7.49. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Does Pulse Biosciences Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Pulse Biosciences insiders own 47% of the company, currently worth about US$398m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Pulse Biosciences Tell Us?

The fact that there have been no Pulse Biosciences insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Pulse Biosciences insiders think the business has merit. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Pulse Biosciences has 4 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

Of course Pulse Biosciences 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.

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This article by Simply Wall St is general in nature. 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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