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There are many different strategies to trade and one of them is to look for insider purchases of stocks. Any insider trading from corporate officers, key employees, vice presidents, directors, senior management or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. Legal insider trading cannot be based on material non-public information; however, most investors believe that corporate insiders may have better insights into the growth of a company and its proceedings.

In this article, I will focus on notable insider share purchases filed at the Securities and Exchange Commission on July 9, 2012. I have also included the key financial positions for the first three companies. Use this list as a potential starting point for your analysis.

1. VMware, Inc (NYSE:VMW): VMware provides virtualization and virtualization-based cloud infrastructure solutions in the United States and internationally. VMware has a market cap of $35.50 billion and is currently trading around $83.08 with a 52-week range of $74.69 to $118.79.

According to SEC filings on July 9, 2012, EMC Corp (Beneficial Owner) purchased a total of 119,283 shares at a total value of $9,997,564. After this transaction, EMC Corp currently owns 38,842,437 shares of VMware. Over the past three months, there have been a total of 32 insider transactions with 21 Buy transactions. The key financial metrics for VMware are given below:

The following chart provides the insider trading summary for three-month and 12-month periods.

2. Daktronics, Inc (NASDAQ:DAKT): Daktronics, Inc., together with its subsidiaries, designs, manufactures, and sells various electronic display systems and related products, as well as provides related maintenance and professional services worldwide. Daktronics has a market cap of $311.37 million and is currently trading around $7.41 with a 52-week range of $6.32 to $11.94. The stock has fallen 22.57% year to date.

According to SEC filings on July 9, 2012, Daktronics had two insiders combined purchase a total of 32,837 shares at a total value of $237,871. Multiple insider purchases are usually a positive sign. Over the past three months, there have been a total of five insider transactions and all of them have been Buy transactions. The key financial metrics for Daktronics are given below:

The following chart provides the insider trading summary for three-month and 12-month periods.

3. First Niagara Financial Group Inc (NASDAQ:FNFG): First Niagara Financial Group operates as the holding company for First Niagara Bank, N.A. that provides retail and commercial banking, and other financial services to individuals, families, and businesses. First Niagara Financial Group has a market cap of $2.61 billion and is currently trading around $7.41 with a 52-week range of $7.36 to $13.52. The stock has fallen 14.14% year to date.

According to SEC filing on July 9, 2012, First Niagara Financial Group had three insiders combined purchase a total of 5,707 shares at a total value of $43,944. Multiple insider purchases are usually a positive sign. Over the past three months, there have been a total of 11 insider transactions and all of them have been Buy transactions. The key financial metrics for Daktronics for First Niagara Financial Group are given below:

The following chart provides the insider trading summary for three-month and 12-month periods.

Other notable transactions (minimum of 2,000 shares) insider buy transactions filed at the SEC on July 9, 2012 are as follows:

  • Pacific Sunwear of California, Inc (NASDAQ:PSUN): Pacific Sunwear Of California, together with its subsidiaries, operates as a specialty retailer in the action sports, fashion, and music influences of the California lifestyle. According to SEC filings on July 9, 2012, Gartner Christine Lee (Sr. VP & GMM, Women's) purchased a total of 27,400 shares at a total value of $49,811.
  • Investors Real Estate Trust (NASDAQ:IRETP): Investors Real Estate Trust, a real estate investment trust (REIT), engages in the ownership and operation of income-producing real estate properties in the United States. According to SEC filing on July 9, 2012, Investors Real Estate Trust had four insiders combined purchase a total of 2,284 shares at a total value of $17,375.
  • Eagle Bancorp, Inc (NASDAQ:EGBN): Eagle Bancorp operates as the bank holding company for EagleBank that provides various commercial and consumer banking services. According to SEC filings on July 9, 2012, Rogers Donald R (Director) purchased a total of 2,000 shares at a total value of $31,500.

Sources: Some of the data is sourced from Google Finance, Nasdaq, Finviz, Fidelity and SEC.gov.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research. The information and data is believed to be accurate, but no guarantees or representations are made.

Source: Notable Insider Buys Filed On July 9