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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 (market cap greater than $250 million) filed at the Securities and Exchange Commission on July 31, 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. RadioShack Corporation (RSH): RadioShack engages in the retail sale of consumer electronic goods and services through its RadioShack store chain. RadioShack has a market cap of $289.34 million and is currently trading around $2.91 with a 52-week range of $2.36 to $14.70.The stock has fallen 70.03% year to date.

According to SEC filing on July 31, 2012, RadioShack had four insiders combine purchased a total of 160,000 shares at a total value of $406,500. Multiple insider purchases are usually a positive sign. Over the past three months, there have been a total of 8 insider transactions with 7 Buy transactions. Key financial metrics for RadioShack is given below:

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

2. AT&T Inc (T): AT&T Inc, together with its subsidiaries, provides telecommunications services to consumers, businesses, and other providers worldwide. AT&T has a market cap of $222.32 billion and is currently trading around $37.92 with a 52-week range of $27.29 to $38.11. The stock has gained 25.4% year to date.

According to SEC filing on July 31, 2012, Ford Scott T (Director) purchased a total of 55,000 shares at a total value of $2,058,650. On June 27, 2012, AT&T announced that their Board of Directors authorized the repurchase of up to 300 million additional shares with no expiration date. Over the past three months, there have been a total of 32 insider transactions with 20 Buy transactions. Key financial metrics for AT&T is given below:

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

3. Pinnacle Entertainment, Inc (PNK): Pinnacle Entertainment owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. Pinnacle Entertainment has a market cap of $678.45 million and is currently trading around $10.85 with a 52-week range of $8.06 to $14.91. The stock has gained 6.79% year to date.

According to SEC filing on July 31, 2012, Shanks Virginia E (EVP and CMO) purchased a total of 10,300 shares at a total value of $105,905. On July 25, 2012, Pinnacle Entertainment released their second-quarter earning results with 3.1% increase in revenue when compared to same period last year. Over the past three months, there have been a total of 27 insider transactions with 24 Buy transactions. Key financial metrics for Pinnacle Entertainment is given below:

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

4. The Jones Group Inc (JNY): The Jones Group engages in the design, marketing, and wholesale of apparel, footwear, jeanswear, jewelry, and handbags. Jones has a market cap of $867.90 million and is currently trading around $10.57 with a 52-week range of $8.00 to $13.19. The stock has gained 0.19% year to date.

According to SEC filing on July 31, 2012, Nuechterlein Jeffrey D (Director) purchased a total of 5,000 shares at a total value of $52,550. On July 25, 2012, Jones released their second-quarter earning results with revenue of $855 million and adjusted earnings per share of $0.22. Over the past three months, there have been a total of two insider transactions with one Buy transaction. Key financial metrics for Jones is given below:

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

5. The Timken Company (TKR): Timken develops, manufactures, markets, and sells anti-friction bearings and assemblies, alloy steels, and mechanical power transmission systems. Timken has a market cap of $3.53 billion and is currently trading around $36.2 with a 52-week range of $29.76 to $57.69. The stock has fallen 6.48% year to date.

According to SEC filing on July 31, 2012, Griffith James W (President and CEO) purchased a total of 5,000 shares at a total value of $189,700. On July 26, 2012, Timken released their second-quarter earning results with revenue of $1.3 billion and income of $183.6 million, or $1.86 per diluted share, compared with $121.5 million, or $1.22 per diluted share during the same period a year ago. Over the past three months, there have been a total of 14 insider transactions with 10 Buy transactions. Key financial metrics for Timken 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 31