Notable Insider Buys Filed On July 17

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 |  Includes: FOLD, GSK, VMW
by: StockPandit

There are many different strategies to trade stocks and one of them is to find the insider trading of stocks. When corporate insiders trade in their own securities, they must report their trades to the Securities and Exchange Commission (SEC), usually within a few business days of the trade. Insider trading cannot be based on material non-public information. However, many investors believe that corporate insiders may have better insight into the growth of the company and its proceedings.

In this article, I will focus on notable insider buy transactions (market cap greater than $250 million) filed at the Securities and Exchange Commission on July 17, 2012. I have also included key financial metrics for each of the company. You can use this list as a potential starting point for your analysis.

Definition of Insider: Corporate insiders are either a company's officers, directors, or any beneficial owners of more than ten percent of a class of the company's equity securities registered under Section 12 of the Securities Exchange Act of 1934.

Rule 10b5-1 Definition: A rule established by the SEC that allows insiders of publicly-traded corporations to create a trading plan of when and how to buy or sell shares in that company. Rule 10b5-1 allows major holders to buy or sell a predetermined number of shares at a predetermined time. 10b5-1 plans are used by many corporate insiders to avoid the accusations of insider trading, regardless of what nonpublic knowledge he/she may later come to possess.

1. Amicus Therapeutics, Inc (FOLD): Amicus is a biopharmaceutical company, focuses on the discovery, development, and commercialization of orally-administered, small molecule drugs for the treatment of lysosomal storage disorders and diseases of neurodegeneration. Amicus has a market cap of $279.21 million and is currently trading around $6.02 with a 52-week range of $2.10 to $7.64. The stock has gained 77.06% year to date.

On July 17, 2012, Amicus and Glaxo Group Limited (GSK) announced an expansion of their collaboration to develop and commercialize the investigational pharmacological chaperone migalastat HCl for Fabry disease. GSK said it will make an $18.6 million equity investment in Amicus, bringing GSK's total ownership stake in Amicus to 19.9%. GlaxoSmithKline plc (Beneficial owner) purchased a total of 2,949,581 Amicus shares at a total value of $18,582,360. Over the past three months, there have been a total of one insider transaction. Key financial metrics for Amicus Therapeutics is given below:

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

2. VMware, Inc (VMW): VMware provides virtualization and virtualization-based cloud infrastructure solutions in the United States and internationally. VMware has a market cap of $34.30 billion and is currently trading around $80.29 with a 52-week range of $74.69 to $118.79.The stock has fallen 3.49% year to date.

According to SEC filing on July 17, 2012, EMC Corp (Beneficial Owner) purchased a total of 29,486 shares at a total value of $2,500,540. On July 17, 2012, VMware announced preliminary second quarter results and also raised their fiscal 2012 revenues. VMware is scheduled to report its second-quarter results on Monday, July 23, 2012, after market close. Over the past three months, there have been a total of 36 insider transactions with 25 Buy transactions. Key financial metrics for VMware is given below:

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

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

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in VMW, GSK, FOLD over the next 72 hours.

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.