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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 10, 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. Air Transport Services Group Inc (NASDAQ:ATSG): Air Transport Services Group provides airline operations, aircraft leases, aircraft maintenance, and other support services primarily to the cargo transportation and package delivery industries. Air Transport Services Group has a market cap of $302.57 million and is currently trading around $4.71 with a 52-week range of $3.86 to $6.88. The stock has gained 0.21% year to date.

According to SEC filing on August 10, 2012, Mesdag Willem (Beneficial Owner) purchased a total of 762,695 shares at a total value of $3,418,600. On August 2, 2012, Air Transport Services Group reported their second quarter earning results with revenue of $153.6 million and EPS of $0.17. Over the past three months, there have been a total of four insider transactions and all of them are Buy transactions. Key financial metrics for Air Transport Services Group are given below:

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

2. Sonus Networks, Inc. (NASDAQ:SONS): Sonus Networks provides infrastructure and subscriber solutions. Sonus Networks has a market cap of $498.22 million and is currently trading around $1.78 with a 52-week range of $1.56 to $3.11. The stock has fallen 25.83% year to date.

According to SEC filing on August 10, 2012, Empire Capital Management LLC (Beneficial Owner) purchased a total of 549,068 shares at a total value of $973,813. On August 8, 2012, Northland Securities downgraded Sonus Networks from Outperform to Market Perform. Over the past three months, there have been a total of 18 insider transactions with 16 Buy transactions. Key financial metrics for Sonus Networks are given below:

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

3. Ruby Tuesday, Inc. (NYSE:RT): Ruby Tuesday develops, operates, and franchises casual dining restaurants in the United States, Puerto Rico, Guam, and internationally. Ruby Tuesday has a market cap of $411.45 million and is currently trading around $6.45 with a 52-week range of $4.98 to $9.39. The stock has fallen 6.52% year to date.

According to SEC filing on August 10, 2012, Ruby Tuesday had two insiders combined purchase a total of 393,052 shares at a total value of $2,553,230. Multiple insider purchases are usually a positive sign. Over the past three months, there have been a total of 30 insider transactions with 22 Buy transactions. Key financial metrics for Ruby Tuesday 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 with the SEC on August 10, 2012 are as follows:

4. MCG Capital Corporation (NASDAQ:MCGC): MCG Capital Corporation is a private equity firm specializing in investments in middle market companies. MCG Capital has a market cap of $345.16 million and is currently trading around $4.67 with a 52-week range of $3.40 to $5.07. The stock has gained 16.46% year to date. According to SEC filing on August 10, 2012, Neu Richard W (Chief Executive Officer) purchased a total of 48,432 shares at a total value of $223,078.

5. Quality Distribution, Inc. (NASDAQ:QLTY): Quality Distribution engages in the transportation of bulk chemicals primarily in North America. Quality Distribution has a market cap of $265.92 million and is currently trading around $9.86 with a 52-week range of $8.01 to $14.61. The stock has fallen 11.89% year to date. According to SEC filing on August 10, 2012, Troy Joseph J (Executive Vice President and CFO) purchased a total of 10,000 shares at a total value of $97,590.

6. Wells Fargo & Company (NYSE:WFC): Wells Fargo provides retail, commercial, and corporate banking services primarily in the United States. Wells Fargo has a market cap of $179.77 billion and is currently trading around $33.83 with a 52-week range of $22.61 to $34.80. The stock has gained 22.75% year to date. According to SEC filing on August 10, 2012, Callahan Patricia R (Senior Executive VP) purchased a total of 8,000 shares at a total value of $200,800.

7. Inland Real Estate Corporation (NYSE:IRC): Inland Real Estate is a real estate investment trust (REIT), engages in the ownership, operation, and development of shopping centers and single-tenant retail properties in the Midwest region of the United States. Inland Real Estate has a market cap of $725.92 million and is currently trading around $8.15 with a 52-week range of $6.57 to $9.65. The stock has gained 7.1% year to date. According to SEC filing on August 10, 2012, Goodwin Daniel L (Beneficial Owner) purchased a total of 7,700 shares at a total value of $61,985.

8. Valhi, Inc. (NYSE:VHI): Valhi operates in the chemicals, component products, and waste management businesses. Valhi has a market cap of $4.19 billion and is currently trading around $12.37 with a 52-week range of $10.67 to $21.69. The stock has fallen 38.64% year to date. According to SEC filing on August 10, 2012, Simmons Harold C (Chairman of the Board) purchased a total of 5,173 shares at a total value of $63,338.

9. Green Mountain Coffee Roasters Inc. (NASDAQ: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 filing on August 10, 2012, Wesley Norman H (Director) purchased a total of 5,000 shares at a total value of $121,150.

10. Vornado Realty Trust (NYSE:VNO): Vornado Realty Trust is a privately owned real estate investment trust. Vornado Realty Trust has a market cap of $14.83 billion and is currently trading around $79.89 with a 52-week range of $68.39 to $88.50. The stock has gained 3.94% year to date. According to SEC filing on August 10, 2012, Tisch Daniel R (Director) purchased a total of 5,000 shares at a total value of $399,627.

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 10