Notable Insider Buys Filed On July 10

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Includes: HRB, NAV, PAY, SFD
by: StockPandit

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 10, 2012. I have also included the key financial positions of each company and insider trading summaries for three-month and 12-month periods. Use this list as a potential starting point for your analysis.

1. Navistar International Corp (NYSE:NAV): Navistar International Corporation, through its subsidiaries, manufactures and sells commercial and military trucks, buses, diesel engines, recreational vehicles (RVs), and chassis, as well as provides service parts for trucks and trailers. Navistar has a market cap of $1.51 billion and is currently trading around $21.95 with a 52-week range of $20.21 to $56.14.The stock has fallen 42.05% year to date.

According to SEC filings on July 10, 2012, Rachesky Mark H MD (Beneficial Owner) purchased a total of 914,163 shares at a total value of $21,542,420. Over the past three months, there have been a total of four insider transactions and all of them have been buy transactions. The current price is fairly close to its 52-week low.

On July 9, 2012, Fitch Ratings lowered its credit rating (by one notch to B-plus, four notches into junk territory, with a negative outlook) on Navistar, citing increased concerns about the company's free cash flow and liquidity due to the change in the company's engine strategy. The key financial metrics for Navistar are given below:

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

2. VeriFone Systems Inc (NYSE:PAY): Verifone Systems designs, markets, and services electronic payment solutions in North America and internationally. VeriFone Systems has a market cap of $3.44 billion and is currently trading around $31.92 with a 52-week range of $30.10 to $55.89.The stock has fallen 10.14% year to date.

According to SEC filings on July 10, 2012, Bergeron Douglas (NYSE:CEO) purchased a total of 155,000 shares at a total value of $5,037,702. The reporting person disclaims beneficial ownership of these securities except to the extent of his pecuniary interest therein, and this report shall not be deemed an admission that the reporting person is the beneficial owner of such securities for the purposes of Section 16 for any other purpose.

Over the past three months, there have been a total of 7 insider transactions with one buy transaction. The key financial metrics for VeriFone Systems are given below:

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

3. H&R Block, Inc (NYSE:HRB): H&R Block, Inc., through its subsidiaries, engages in the provision of tax preparation and related services to the general public in the United States, Canada, and Australia. H&R Block has a market cap of $4.40 billion and is currently trading around $16.04 with a 52-week range of $12.54 to $17.46.The stock has fallen 1.78% year to date.

According to SEC filings on July 10, 2012, Macfarlane Gregory J (Chief Financial Officer) purchased a total of 6,300 shares at a total value of $101,119. Over the past three months, there have been a total of 13 insider transactions with 8 Buy transactions. The key financial metrics for H&R Block are given below:

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

4. Smithfield Foods, Inc (NYSE:SFD): Smithfield Foods, Inc., together with its subsidiaries, engages in the production and marketing of fresh meat and packaged meat products in the United States and internationally. Smithfield Foods has a market cap of $3.00 billion and is currently trading around $19.36 with a 52-week range of $17.79 to $25.12.The stock has fallen 20.26% year to date.

According to SEC filing on July 10, 2012, Thamodaran Dhamu R (Executive Vice President) purchased a total of 5,000 shares at a total value of $97,426. Over the past three months, there have been a total of 28 insider transactions with 16 Buy transactions. The key financial metrics for Smithfield Foods are given below:

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

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

Disclosure: I am short HRB.

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.