Those following along with Pulse Biosciences, Inc. (NASDAQ:PLSE) will no doubt be intrigued by the recent purchase of shares by Robert Duggan, Executive Co-Chairman of the company, who spent a stonking US$972k on stock at an average price of US$17.35. While that only increased their holding size by 0.1%, it is still a big swing by our standards.

Check out our latest analysis for Pulse Biosciences

Pulse Biosciences Insider Transactions Over The Last Year

Notably, that recent purchase by Robert Duggan is the biggest insider purchase of Pulse Biosciences shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$17.65. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Pulse Biosciences share holders is that insiders were buying at near the current price.

Pulse Biosciences insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Pulse Biosciences is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Pulse Biosciences

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. We usually like to see fairly high levels of insider ownership. Pulse Biosciences insiders own about US$773m worth of shares (which is 71% 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 Do The Pulse Biosciences Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Pulse Biosciences. One for the watchlist, at least! While it's good to be aware of 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. Be aware that Pulse Biosciences is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

But note: Pulse Biosciences may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.