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There can be several reasons why insiders might sell their own company's stock: Buying a big personal purchase like a house, sometimes they need cash to fund a charity, and other times insiders might sell because their stock is overvalued and no longer attractive at current prices.

Whichever the case is, we can all agree why insiders buy shares, and this is because they think the stock is a bargain and has upside potential. When mutual funds or hedge fund managers (and even everyday investors) see a lot of insider activity, it most definitely triggers a reason for a second look into the company. Recently, a number of corporate insiders have bought large amounts of stock in their own companies. The four stocks below have seen heavy insider buying, which warrants a second look at these stocks as a possible buy.

The Coca-Cola Company (NYSE:KO) is a non-alcoholic beverage company. The Company owns or licenses and markets more than 500 non-alcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It also owns and markets non-alcoholic sparkling beverage brands, including Diet Coke, Fanta and Sprite. The current market price is $67.44 with a one-year analyst price target of $76.21. This represents a 13% upside potential, not including the current 2.8% dividend yield. KO's 12.6 Trailing P/E is at the low end of its 5-year range (lowest 12.3 to highest 27.3).

I like the fact that KO increased planned expenditures on marketing and innovation. It has a history of strong innovation – this expanded marketing effort is expected to create a strong product pipeline. Another reason to keep an eye on this stock is because a director just bought 100,000 shares, or $6.7 million worth of stock, at $67.11 per share.

Flowserve Corporation (NYSE:FLS) is a manufacturer and aftermarket service provider of flow control systems. The Company develops and manufactures precision-engineered flow control equipment integral to the movement, control and protection of the flow of materials. The current market price is $92.62, with a one-year analyst price target of $128. This represents a 38.2% upside potential, not including the current dividend yield of 1.3%. Flowserve has one of the largest exposures to global infrastructure spending in the process control universe, with meaningful exposure to the oil and gas, chemical, power, and water markets. With an increase in sales volumes, FLS should continue to experience operating margin expansion owing to enhanced capacity utilization. The company's days sales in inventory have been higher than its Industry average for each of the past five years.

Also, the CEO and president just bought 7,000 shares, or $639,463 worth of stock, at $91.35 per share. This is a very strong company that continues to grow despite market sentiment. FLS's 0.6 Forward PEG is at the low end of its 5-year range (lowest 0.4 to highest 5.0), which represents an undervalued company that has plenty of room for growth.

8x8, Inc. (NASDAQ:EGHT) develops and markets telecommunications services for Internet protocol (IP), telephony and video applications, as well as Web-based conferencing and unified communications services, managed hosting and cloud-based computing services. The current market price is $3.52, with a one-year analyst price target of $5.17. This represents a 46.88% upside potential.

I love the fact that 8x8 is a cash-rich company, with a total cash position on its balance sheet of $19.1 million and total debt of zero. The company seems to be growing very rapidly; the estimated annual revenue growth for 2012 is 18.6% and 43.4% for 2013. Another reason to consider EGHT is because a director just bought 41,480 shares, or $153,700 worth of stock, at $3.71 per share. With exponential forecasted growth and insider trading, I feel this stock is on the path for long term growth.

Furiex Pharmaceuticals, Inc. (NASDAQ:FURX) is a drug development collaboration company. The current market price is $15.52 with a one-year analyst price target of $25. This represents a 61.08% upside potential. I love that Furiex is a cash-rich company, with a total cash position on its balance sheet of $54.81 million and total debt of zero. The company has been gaining a lot of momentum recently, due in part to the heavy insider buying. Director Fredric N. Eshelman bought 265,017 shares or $4.2 Million, at $15.97 per share. Mr. Eshelman increased his stake by 19.69% to 1,611,220 shares with this purchase. Also, Chief Financial Officer Marshall H. Woodworth acquired 6,211 shares or $91,799 at $14.78 per share. The large acquisition by key insiders signals a strong buy. It seems they are aware of something that might not yet be reflected in the market price.

Source: Eye On These 4 Stocks With Heavy Insider Trading