Non-Independent Director Of Pulse Seismic Sold 100% Of Their Shares
We wouldn't blame Pulse Seismic Inc. (TSE:PSD) shareholders if they were a little worried about the fact that Neal Coleman, the Non-Independent Director recently netted about CA$1.2m selling shares at an average price of CA$2.85. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.
Pulse Seismic Insider Transactions Over The Last Year
In fact, the recent sale by Neal Coleman was the biggest sale of Pulse Seismic shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of CA$2.93, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 100% of Neal Coleman's holding.
Neal Coleman ditched 422.70k shares over the year. The average price per share was CA$2.85. 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!
Check out our latest analysis for Pulse Seismic
I will like Pulse Seismic better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Pulse Seismic Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Pulse Seismic insiders own 1.9% of the company, worth about CA$2.9m. We consider this fairly low insider ownership.
So What Do The Pulse Seismic Insider Transactions Indicate?
An insider hasn't bought Pulse Seismic stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for Pulse Seismic (1 is a bit concerning!) and we strongly recommend you look at these before investing.
But note: Pulse Seismic 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.