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There are many different strategies to trade stocks and one of them is to find 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 August 07, 2012. I have also included the key financial metrics for the first three companies. 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. Theravance Inc (THRX): Theravance Inc is a biopharmaceutical company, engaged in the discovery, development, and commercialization of small molecule medicines primarily for therapeutic areas of respiratory diseases, bacterial infections, and central nervous system (CNS)/pain. Theravance has a market cap of $2.62 billion and is currently trading around $27.07 with a 52-week range of $12.91 to $31.87. The stock has gained 22.49% year to date.

According to SEC filings on August 07, 2012, Glaxosmithkline Plc (Beneficial Owner) purchased a total of 316,334 shares at a total value of $8,923,782. On July 13, 2012, GlaxoSmithKline plc (GSK) and Theravance announced the submission of regulatory applications in the US and European Union for the once-daily investigational medicine fluticasone furoate "FF"/vilanterol "VI" (FF/VI). Over the past three months, there have been a total of 17 insider transactions with 10 Buy transactions. The key financial metrics for Theravance are given below:

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

2. Delta Air Lines, Inc (DAL): Delta Air Lines. provides scheduled air transportation for passengers and cargo in the United States and internationally. Delta Air Lines has a market cap of $7.88 billion and is currently trading around $9.32 with a 52-week range of $6.41 to $12.25. The stock has gained 15.2% year to date.

According to SEC filings on August 07, 2012, Jacobson Paul A (Senior Vice President & CFO) purchased a total of 50,000 shares at a total value of $467,100. Over the past three months, there have been a total of 16 insider transactions with 10 Buy transactions. The key financial metrics for Delta Air Lines are given below:

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

3. First Niagara Financial Group Inc (FNFG): First Niagara Financial Group operates as the holding company for First Niagara Bank, N.A. that provides retail and commercial banking, and other financial services to individuals, families, and businesses. First Niagara Financial Group has a market cap of $2.84 billion and is currently trading around $8.04 with a 52-week range of $7.14 to $10.98. The stock has fallen 6.84% year to date.

According to SEC filings on August 07, 2012, First Niagara Financial Group had two insiders combine purchased a total of 22,500 shares at a total value of $177,750. Multiple insider purchases are usually a positive sign. Over the past three months, there have been a total of 14 insider transactions with 13 Buy transactions. The key financial metrics for First Niagara Financial Group are given below:

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

Other notable insider buy transactions (minimum of 5,000 shares) filed at the SEC on August 07, 2012, are as follows:

4. Ameristar Casinos, Inc (ASCA): Ameristar Casinos develops, owns, and operates casinos and related hotel, food and beverage, entertainment, and other facilities in the United States. Ameristar Casinos has a market cap of $560.16 million and is currently trading around $16.99 with a 52-week range of $14.60 to $23.47. The stock has fallen 1.74% year to date. According to SEC filing on August 07, 2012, Cochrane Luther P (Director) purchased a total of 12,377 shares at a total value of $197,896.

5. Steelcase Inc (SCS): Steelcase designs, manufactures, and distributes furniture systems and seating products, user-centered technologies, and interior architectural products primarily in North America, Europe, and Asia. Steelcase has a market cap of $1.15 billion and is currently trading around $9.15 with a 52-week range of $5.40 to $9.86. The stock has gained 22.65% year to date. According to SEC filings on August 07, 2012, Hoover R David (Director) purchased a total of 10,000 shares at a total value of $87,835.

6. LeapFrog Enterprises, Inc (LF): LeapFrog Enterprises designs, develops, and markets technology-based learning products and related proprietary content for children worldwide. LeapFrog Enterprises has a market cap of $722.79 million and is currently trading around $10.83 with a 52-week range of $2.57 to $12.28. The stock has gained 93.74% year to date. According to SEC filings on August 07, 2012, Arthur Raymond L (Chief Financial Officer) purchased a total of 10,000 shares at a total value of $103,500.

7. Rofin-Sinar Technologies (RSTI): Rofin-Sinar engages in the design, development, engineering, manufacturing, and marketing of laser-based products worldwide. Rofin-Sinar has a market cap of $525.61 million and is currently trading around $18.41 with a 52-week range of $16.46 to $29.84. The stock has fallen 19.43% year to date. According to SEC filings on August 07, 2012, Baasel Carl F (Director) purchased a total of 5,000 shares at a total value of $89,900.

8. Quest Diagnostics Inc (DGX): Quest Diagnostics provides diagnostic testing, information, and services in the United States and internationally. Quest Diagnostics has a market cap of $9.43 billion and is currently trading around $59.4 with a 52-week range of $45.12 to $63.98. The stock has gained 2.31% year to date. According to SEC filings on August 07, 2012, Rusckowski Stephen H (President and CEO) purchased a total of 5,000 shares at a total value of $296,677.

Source: 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 August 7