Pulse Biosciences: Insider Buys Signal Confidence Amid Stock Decline

Pulse Biosciences, Inc. (NASDAQ: PLSE), a developer of precision pulsed electric field (PPEF) technology for medical applications, has seen its stock price decline by 11% over the past year, falling from highs of $17.42 in late 2024 to around $15.33 as of June 2025. Yet, behind this market skepticism lies a notable trend: significant insider buying by key executives, particularly at prices above the current valuation. This raises a critical question: Is the stock undervalued, or are insiders merely gambling on a rebound? Let's unpack the data.

The Insider Buying Narrative

The most striking activity comes from Robert W. Duggan, the company's Executive Chairman and a beneficial owner of over 10% of shares. In late December 2024, Duggan spent $1.9 million to buy 111,310 shares at an average price of $17.23—a price above the stock's current level. This was labeled an “informative buy,” meaning he used personal funds, signaling confidence in the company's prospects. Duggan's purchases alone over the past two years total $7.5 million, with many transactions occurring at prices significantly above where the stock trades today.

Other insiders, like Mitchell E. Levinson (Director), also contributed to the buying trend. Levinson exercised options to acquire 5,206 shares in September 2024, valued at $57,266—a move TipRanks classifies as “informative.” Collectively, insiders own 71.5% of the company's shares, a staggering majority that underscores their alignment with long-term value creation.

The Contrarian Sell-Side Activity

Not all insiders are bullish. Darrin Uecker, the Chief Technology Officer, sold 30,000 shares in June 2025 at prices between $15.98 and $16.40—near the stock's current price. Similarly, former CEO Burke T. Barrett sold 50,000 shares in December 2024 for $871,000. While these sales are notable, they pale in comparison to the scale of Duggan's purchases. Crucially, Uecker's sales occurred at prices below Duggan's December buys, suggesting they may reflect personal financial needs rather than a lack of confidence in the company.

Market Misvaluation or Reality Check?

Pulse Biosciences' stock has been pressured by broader market volatility and sector-specific headwinds. The company's revocation of its municipal advisor registration in late 2024—a regulatory setback unrelated to its core medical technology—may have contributed to investor nervousness. However, the stock's decline has created a gap between its price and the valuation insiders implicitly endorse through their purchases.

Why Insiders Matter

The distinction between “informative” and “uninformative” transactions is critical here. Duggan's purchases are self-funded bets on the company's future, whereas Uecker's sales might stem from structured compensation plans or diversification needs. With 71.5% insider ownership, the majority of executives are already heavily invested. Their continued buying at lower prices suggests they believe the market is undervaluing the company's potential.

Investment Implications

Pulse Biosciences presents a compelling contrarian opportunity for investors willing to bet on insider confidence. Key arguments in favor:

1. High Insider Ownership: Executives hold a majority stake, creating strong incentives to maximize value.
2. Selective Buying at Lower Prices: Duggan's purchases since late 2024 occurred at prices above current levels, implying a floor for the stock.
3. Undiscounted Technology: The company's PPEF platform, used in dermatology and oncology, has yet to fully monetize its potential. A clinical or partnership breakthrough could catalyze a rebound.

However, risks remain. The stock's 11% decline reflects broader skepticism, and the company's financial performance (not detailed in the data) must be scrutinized. Investors should also consider the possibility of further regulatory or operational hurdles.

Final Take

Pulse Biosciences' insider activity paints a mixed but ultimately optimistic picture. While some executives have sold shares, the dominant trend—led by Duggan's substantial purchases—suggests confidence in the company's long-term prospects. For investors, this creates an intriguing entry point if they believe the market has overreacted to short-term volatility. Monitor the stock's performance against its 50-day moving average ($17.01) and look for catalysts like clinical data or partnerships to validate the bullish insider narrative.

In the words of Warren Buffett: “Be fearful when others are greedy, and greedy when others are fearful.” For Pulse Biosciences, the insiders are acting greedily—now it's time to see if the market follows.