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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 (market cap greater than $250 million) filed at the Securities and Exchange Commission on July 12, 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 (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 $1.61 billion and is currently trading around $23.43 with a 52-week range of $20.21 to $56.14. The stock has fallen 38.15% year to date.

According to SEC filing on July 12, 2012, Icahn Carl C (Beneficial Owner) purchased a total of 870,911 shares at a total value of $19,940,953. Please refer the footnotes from Form 4 for more details about this transaction. Also, Rachesky Mark H MD (Beneficial Owner) purchased a total of 914,163 shares on July 9th and July 10th. Over the past three months, there have been a total of 6 insider transactions and all of them are Buy transactions. Key financial metric for Navistar is given below:

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

2. VMware, Inc (VMW): VMware, Inc. provides virtualization and virtualization-based cloud infrastructure solutions in the United States and internationally. VMware has a market cap of $35.74 billion and is currently trading around $83.65 with a 52-week range of $74.69 to $118.79. The stock has gained 0.55% year to date.

According to SEC filing on July 12, 2012, EMC Corp (Beneficial Owner) purchased a total of 181,978 shares at a total value of $14,995,256. Since June 1, 2012, EMC Corp purchased total of 634,789 shares. Over the past three months, there have been a total of 35 insider transactions with 24 Buy transactions. Key financial metric for VMware is given below:

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

3. The Pep Boys - Manny, Moe & Jack (PBY): The Pep Boys Manny, Moe & Jack, together with its subsidiaries, provides automotive repair and maintenance services, tires, parts, and accessories. Pep Boys Manny Moe and Jack has a market cap of $515.82 million and is currently trading around $9.76 with a 52-week range of $8.18 to $15.46. The stock has fallen 11.27% year to date.

According to SEC filing on July 12, 2012, Michael R. Odell (President & CEO) purchased a total of 5,262 shares at a total value of $49,989. On May 29, 2012, Pep Boys Manny Moe and Jack announced that it has agreed to terminate the proposed merger between Pep Boys and The Gores Group. Followed by this news, the stock price went down from $11.09 to $8.89 within one day. Over the past three months, there have been a total of four insider transactions and all of them are Buy transactions. Key financial metric for Pep Boys Manny Moe and Jack is 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.

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 12