Notable Insider Buys Filed On Aug. 1

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 |  Includes: INOD, MDCA, OCR, OPK, ORI, PXLW, USAP
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 SEC on Aug. 1, 2012. I have also included key financial metrics for each of the companies. You can use this list as a potential starting point for your analysis.

Definition of an Insider: Corporate insiders are either a company's officers, directors, or any beneficial owners of more than 10% 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 or she may later come to possess.

1. Opko Health (OPK): Opko Health is a pharmaceutical and diagnostics company that engages in the discovery, development, and commercialization of novel and proprietary technologies. Opko Health has a market cap of $1.21 billion and is currently trading around $4.09 with a 52-week range of $3.49 to $5.85. The stock has fallen 16.53% year to date.

According to an SEC filing on Aug. 1, 2012, CEO and Chairman Phillip Frost M.D. purchased a total of 100,000 shares at a total value of $424,008. Over the past three months, there have been a total of 56 insider transactions and all of them are buy transactions. Key financial metrics for Opko Health are given below:

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

2. Pixelworks (PXLW): Pixelworks engages in the design, development, and marketing of video and pixel processing semiconductors and software for digital video applications. Pixelworks has a market cap of $53.75 million and is currently trading around $2.95 with a 52-week range of $1.71 to $3.06. The stock has gained 21.9% year to date.

According to an SEC filing on Aug. 1, 2012, Pixelworks had a combined six insiders purchase a total of 39,804 shares at a total value of $99,481. Multiple insider purchases are usually a positive sign. Over the past three months, there have been a total of 32 insider transactions -- all of which have been buy transactions. Key financial metrics for Pixelworks are given below:

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

3. MDC Partners (MDCA): MDC Partners provides marketing communications services worldwide. The company operates in two segments, Strategic Marketing Services and Performance Marketing Services. MDC Partners has a market cap of $295.62 million and is currently trading around $9.53 with a 52-week range of $9.24 to $20.21. The stock has fallen 28.61% year to date.

According to an SEC filing on Aug. 1, 2012, Director Robert Kamerschen purchased a total of 20,000 shares at a total value of $190,000. Over the past three months, there has been a total of one insider transaction. Key financial metrics for MDC Partners are given below:

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

Other notable insider buy transactions (minimum of 5,000 shares) filed at the SEC on July 31, 2012, are as follows:

  • Universal Stainless & Alloy Products (USAP): Universal Stainless & Alloy Products engages in the manufacture and marketing of semi-finished and finished specialty steels in the United States. Universal Stainless & Alloy Products has a market cap of $231.80 million and is currently trading around $33.84 with a 52-week range of $22.25 to $48.50. The stock has fallen 9.42% year to date. According to an SEC filing on Aug. 1, 2012, Pennant Capital Management (beneficial owner) purchased a total of 17,543 shares at a total value of $590,590.
  • Old Republic International (ORI): Old Republic International engages in underwriting insurance products in the United States and Canada. Old Republic International has a market cap of $2.12 billion and is currently trading around $8.19 with a 52-week range of $7.15 to $11.21. The stock has fallen 11.65% year to date. According to an SEC filing on Aug. 1, 2012, Chairman and CEO Aldo C. Zucaro purchased a total of 10,000 shares at a total value of $79,100.
  • Innodata (INOD): Innodata engages in the provision of business process, technology, and consulting services, as well as products and solutions that help to create, manage, use, and distribute digital information. Innodata has a market cap of $94.13 million and is currently trading around $3.80 with a 52-week range of $2.61 to $7.35. The stock has fallen 3.55% year to date. According to an SEC filing on Aug. 1, 2012, Director Haig S. Bagerdjian purchased a total of 5,000 shares at a total value of $16,700.
  • Omnicare (OCR): Omnicare operates as a healthcare services company that specializes in the management of pharmaceutical care in the United States and Canada. Omnicare has a market cap of $3.58 billion and is currently trading around $31.70 with a 52-week range of $20.25 to $36.40. The stock has fallen 7.98% year to date. According to an SEC filing on Aug. 1, 2012, Interim CEO, President, and CFO John L. Workman purchased a total of 5,000 shares at a total value of $155,700.

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 ORI over the next 72 hours. 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.