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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 insights 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 13, 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. E*TRADE Financial Corporation (NASDAQ:ETFC): E*TRADE Financial is a financial services company, provides online brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand in the United States. E*TRADE has a market cap of $2.43 billion and is currently trading around $8.51 with a 52-week range of $7.08 to $12.45. The stock has gained 6.91% year to date.

According to SEC filings on August 13, 2012, E*TRADE had a two insiders combine purchase a total of 126,778 shares at a total value of $1,063,606. Multiple insider purchases are usually a positive sign. Over the past three months, there have been a total of 2 insider transactions and all of them are Buy transactions. The key financial metrics for E*TRADE are given below:

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

2. Opko Health Inc (NYSE:OPK): Opko Health is a pharmaceutical and diagnostics company engaged in the discovery, development, and commercialization of novel and proprietary technologies, primarily in the United States, Chile, and Mexico. Opko Health has a market cap of $1.25 billion and is currently trading around $4.24 with a 52-week range of $3.52 to $5.85. The stock has fallen 13.47% year to date.

According to SEC filings on August 13, 2012, Frost Phillip MD Et Al (CEO & Chairman) purchased a total of 100,000 shares at a total value of $424,085. Please refer the footnote from Form 4 for more detail about the ownership. Frost Phillip has been a buyer almost every day this year. Over the past three months, there have been a total of 58 insider transactions and all of them are Buy transactions. The key financial metrics for Opko Health are given below:

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

3. XPO Logistics Inc (NYSE:XPO): XPO Logistics provides third-party logistics services using a network of relationships with ground, sea, and air carriers in the United States, Mexico, and Canada. XPO Logistics has a market cap of $255.57 million and is currently trading around $14.48 with a 52-week range of $6.61 to $19.40. The stock has fallen 19.38% year to date.

According to SEC filings on August 13, 2012, XPO Logistics had three insiders combined purchase a total of 46,415 shares at a total value of $692,699. Multiple insider purchases are usually a positive sign. Over the past three months, there have been a total of 4 insider transactions and all of them are Buy transactions. The key financial metrics for XPO Logistics 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 with the SEC on August 13, 2012 are as follows:

4. UGI Corporation (NYSE:UGI): UGI Corporation distributes and markets energy products and related services in the United States and internationally. UGI Corp has a market cap of $3.41 billion and is currently trading around $30.35 with a 52-week range of $24.07 to $31.51. The stock has gained 3.23% year to date. According to SEC filings on August 13, 2012, Hermance Frank S (Director) purchased a total of 35,000 shares at a total value of $1,062,600.

5. Northstar Realty Finance Corp (NYSE:NRF): NorthStar Realty Finance operates as a real estate investment trust in the United States. Northstar Realty Finance has a market cap of $750.17 million and is currently trading around $5.57 with a 52-week range of $2.92 to $5.96. The stock has gained 16.77% year to date. According to SEC filings on August 13, 2012, Butcher C Preston (Director) purchased a total of 20,000 shares at a total value of $110,400.

6. IBERIABANK Corporation (NASDAQ:IBKC): IBERIABANK Corporation operates as the holding company for IBERIABANK that provides commercial and retail banking products and services in the United States. IBERIABANK Corp has a market cap of $1.39 billion and is currently trading around $47.25 with a 52-week range of $41.38 to $54.94. The stock has fallen 4.16% year to date. According to SEC filings on August 13, 2012, Cooper Angus R II (Director) purchased a total of 20,000 shares at a total value of $941,886.

7. Vivus, Inc. (NASDAQ:VVUS): Vivus is a biopharmaceutical company, developing therapies to address obesity, sleep apnea, diabetes, and male sexual health. Vivus has a market cap of $2.18 billion and is currently trading around $21.72 with a 52-week range of $6.82 to $31.21. The stock has gained 122.77% year to date. According to SEC filings on August 13, 2012, Mario Ernest (Director) purchased a total of 20,000 shares at a total value of $434,899.

8. StoneMor Partners LP (NYSE:STON): StoneMor Partners engages in the ownership and operation of cemeteries in the southeast, northeast, and west regions of the United States. StoneMor Partners has a market cap of $449.22 million and is currently trading around $22.99 with a 52-week range of $20.55 to $29.50. The stock has fallen 1.96% year to date. According to SEC filings on August 13, 2012, Lautman Martin R (Director) purchased a total of 10,000 shares at a total value of $235,900.

9. First Niagara Financial Group Inc (NASDAQ: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 $2.86 billion and is currently trading around $8.12 with a 52-week range of $7.14 to $10.93. The stock has fallen 5.91% year to date. According to SEC filings on August 13, 2012, Rendulic Mark R (EVP, Retail Banking) purchased a total of 7,500 shares at a total value of $60,675.

10. Windstream Corporation (NASDAQ:WIN): Windstream Corporation provides communications and technology solutions in the United States. Windstream has a market cap of $5.54 billion and is currently trading around $9.42 with a 52-week range of $9.00 to $13.08. The stock has fallen 19.76% year to date. According to SEC filings on August 13, 2012, Gardner Jeffery R (Director, President & CEO) purchased a total of 5,000 shares at a total value of $46,943.

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 13