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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 filed at the Securities and Exchange Commission on July 19, 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. Emmis Communications Corporation (EMMS): Emmis Communications is a diversified media company, engages in radio broadcasting and magazine publishing operations primarily in the United States. It also owns and operates national radio networks in Slovakia and Bulgaria. Emmis Communications has a market cap of $78.38 million and is currently trading around $2.02 with a 52-week range of $0.58 to $2.14. The stock has gained 206.06% year to date.

According to SEC filing on July 19, 2012, Emmis Communications had two insiders combine purchased a total of 282,046 shares at a total value of $530,838. Multiple insider purchases are usually a positive sign. Over the past three months, there have been a total of 28 insider transactions and all of them are buy transactions. Key financial metrics for Emmis Communications is given below:

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

2. Ambassadors Group, Inc (EPAX): Ambassadors Group, an educational company, organizes and promotes travel programs for students and professionals worldwide. Ambassadors Group has a market cap of $88.08 million and is currently trading around $5.01 with a 52-week range of $3.88 to $8.89.The stock has gained 11.09% year to date.

According to SEC filing on July 19, 2012, Bandera Partners LLC (Beneficial Owner) purchased a total of 64,273 shares at a total value of $321,359. Please refer footnote from Form 4 for more detail about this transaction. Over the past three months, there have been a total of 34 insider transactions with 33 Buy transactions. Ambassadors Group is scheduled to report its second quarter earnings on July 25, 2012, after market close. Key financial metrics for Ambassadors Group is given below:

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

3. VMware, Inc (VMW): VMware provides virtualization and virtualization-based cloud infrastructure solutions in the United States and internationally. VMware has a market cap of $39.63 billion and is currently trading around $92.76 with a 52-week range of $74.69 to $118.79. The stock has gained 11.5% year to date.

According to SEC filing on July 19, 2012, EMC Corp (Beneficial Owner) purchased a total of 18,500 shares at a total value of $1,479,312. On July 17, 2012, VMware announced preliminary second quarter results, including record quarterly revenues of approximately $1.123 billion, up 22% over second quarter 2011, versus guidance of $1.100 billion to $1.120 billion. VMware is scheduled to report its second quarter results on July 23, 2012, after market close. Over the past three months, there have been a total of 37 insider transactions with 26 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.

4. 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 $1.70 billion and is currently trading around $24.78 with a 52-week range of $20.21 to $55.15

According to SEC filing on July 19, 2012, Icahn Carl C (Beneficial Owner) purchased a total of 10,640 shares at a total value of $244,826. Over the past three months, there have been a total of 9 insider transactions and all of them are buy transactions. Key financial metrics for Navistar 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.

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 19