Company insiders will sell their own stock for a ton of different reasons. They might need the cash for that new Lamborghini, or they might need the funds to start a charity. Sometimes they sell simply for diversification purposes.
Insiders, however, usually buy their own shares for one reason only: They think the stock is a value and has big upside.
Recently, a number of companies' corporate insiders have been gobbling up their own stock. These insiders see value, which warrants a closer look at these names.
One medical technology player that insiders are loading up on here is Pulse Biosciences (PLSE) , which develops therapeutic tissue treatment platform based on its proprietary nano-pulse stimulation technology.
Pulse Biosciences has a market cap of $350 million. This stock trades at a premium valuation, with a price-to-book of 13.14. This is a cash-rich company, since its total cash position is $16.39 million and its total debt is zero.
A beneficial owner just bought 319,242 shares, or $7.80 million worth of stock, at $22.23 to $25.37 per share.
If you're bullish on Pulse Biosciences, then I would look for long-biased trades as long as this stock is trending above its 50-day at $20.68 and then once it breaks out above near-term resistance levels at $26 to $27.19 with volume near or above its three-month average of 369,400 shares. Some possible upside targets off that breakout are $33 to its all-time high of $35.93 a share.