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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 09, 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. IMAX Corporation (IMAX): IMAX Corporation operates as an entertainment technology company specializing in motion picture technologies and presentations worldwide. IMAX has a market cap of $1.40 billion and is currently trading around $21.3 with a 52-week range of $12.57 to $26.68. The stock has gained 16.2% year to date.

According to SEC filings on August 09, 2012, Douglas Kevin (13(d)(3) group) purchased a total of 300,000 shares at a total value of $6,536,727. Please refer the footnote from Form 4 for more detail about the ownership. Over the past three months, there have been a total of 21 insider transactions with 18 Buy transactions. The key financial metrics for IMAX are given below:

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

2. Beazer Homes USA, Inc (BZH): Beazer Homes USA designs, builds, and sells single-family and multi-family homes in 16 states in the United States. Beazer Homes USA has a market cap of $211.12 million and is currently trading around $2.79 with a 52-week range of $1.35 to $3.98. The stock has gained 12.5% year to date.

According to SEC filings on August 09, 2012, Beazer Brian C (Director) purchased a total of 20,000 shares at a total value of $52,656. Over the past three months, there have been a total of one insider buy transaction. The key financial metrics for Beazer Homes USA are given below:

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

3. Quality Distribution, Inc (QLTY): Quality Distribution engages in the transportation of bulk chemicals primarily in North America. Quality Distribution has a market cap of $259.72 million and is currently trading around $9.63 with a 52-week range of $8.01 to $14.61. The stock has fallen 13.94% year to date.

According to SEC filing son August 09, 2012, White Thomas M (Director) purchased a total of 15,000 shares at a total value of $142,244. Over the past three months, there have been a total of 8 insider transactions and all of them are Buy transactions. The key financial metrics for Quality Distribution 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 09, 2012, are as follows:

4. XenoPort, Inc (XNPT): XenoPort is a biopharmaceutical company, focuses on developing and commercializing a portfolio of internally discovered product candidates for the potential treatment of neurological disorders. XenoPort has a market cap of $257.18 million and is currently trading around $8.41 with a 52-week range of $3.46 to $8.79. The stock has gained 120.73% year to date. According to SEC filings on August 09, 2012, Mario Ernest (Director) purchased a total of 10,000 shares at a total value of $84,983.

5. Green Mountain Coffee Roasters Inc (GMCR): Green Mountain Coffee Roasters engages in the specialty coffee and coffee maker business. Green Mountain has a market cap of $3.80 billion and is currently trading around $24.43 with a 52-week range of $17.11 to $115.98. The stock has fallen 45.53% year to date. According to SEC filings on August 09, 2012, Green Mountain had two insiders combine purchased a total of 10,000 shares at a total value of $239,730. Multiple insider purchases are usually a positive sign.

6. Sequenom, Inc (SQNM): Sequenom provides products, services, diagnostic testing, applications, and genetic analysis products that translate the results of genomic science into solutions for biomedical research, translational research, molecular medicine applications, and agricultural and livestock research. Sequenom has a market cap of $396.41 million and is currently trading around $3.46 with a 52-week range of $2.65 to $6.22. The stock has fallen 22.25% year to date. According to SEC filings on August 09, 2012, Sequenom had two insiders combined purchased a total of 7,000 shares at a total value of $22,860.

7. MFA Financial, Inc (MFA): MFA Financial is a real estate investment trust, invests in residential agency and non-agency mortgage-backed securities. MFA Financial has a market cap of $2.83 billion and is currently trading around $7.92 with a 52-week range of $6.23 to $8.17. The stock has gained 17.86% year to date. According to SEC filings on August 09, 2012, MFA Financial had two insiders combined purchased a total of 6,500 shares at a total value of $51,328.

8. Valhi, Inc (VHI): Valhi, Inc operates in the chemicals, component products, and waste management businesses. Valhi has a market cap of $4.14 billion and is currently trading around $12.21 with a 52-week range of $10.67 to $21.69. The stock has fallen 39.43% year to date. According to SEC filings on August 09, 2012, Simmons Harold C (Chairman of the Board) purchased a total of 6,000 shares at a total value of $73,404.

9. Silicon Image, Inc (SIMG): Silicon Image provides wireless and wired connectivity solutions that enable the distribution and presentation of high-definition content for mobile, consumer electronics, and personal computer markets. Silicon Image has a market cap of $419.58 million and is currently trading around $5.04 with a 52-week range of $3.53 to $6.94. The stock has gained 7.23% year to date. According to SEC filings on August 09, 2012, Hanelt Peter G (Director) purchased a total of 5,250 shares at a total value of $24,990.

10. Walter Energy, Inc (WLT): Walter Energy produces and exports metallurgical coal for the steel industry primarily in the United States. Walter Energy has a market cap of $2.44 billion and is currently trading around $39.03 with a 52-week range of $31.33 to $97.30. The stock has fallen 35.55% year to date. According to SEC filing on August 09, 2012, Beatty David R (Director) purchased a total of 5,000 shares at a total value of $187,435.

11. Coeur d'Alene Mines Corporation (CDE): Coeur engages in the ownership, operation, exploration, and development of silver and gold mining properties primarily located in the United States, Mexico, Bolivia, Argentina, and Australia. Coeur has a market cap of $1.75 billion and is currently trading around $19.49 with a 52-week range of $15.15 to $30.99. The stock has fallen 19.26% year to date. According to SEC filings on August 09, 2012, Krebs Mitchell J (President and CEO) purchased a total of 5,000 shares at a total value of $96,299.

12. Intersil Corp (ISIL): Intersil designs, develops, manufactures, and markets analog and mixed-signal integrated circuits for applications in the industrial, computing, consumer, and communications electronics markets. Intersil has a market cap of $1.16 billion and is currently trading around $9.13 with a 52-week range of $8.72 to $12.97. The stock has fallen 12.55% year to date. According to SEC filings on August 09, 2012, Conn Robert W (Director) purchased a total of 5,000 shares at a total value of $45,694.

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 9