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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 21, 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.

1. Forest Laboratories, Inc (FRX): Forest Laboratories develops, manufactures, and sells branded forms of ethical drug products primarily in the United States and Europe. Forest Laboratories has a market cap of $9.15 billion and is currently trading around $34.42 with a 52-week range of $28.47 to $36.44. The stock has gained 13.75% year to date.

According to SEC filings on August 21, 2012, Icahn Carl C (Beneficial Owner) purchased a total of 1,962,011 shares at a total value of $67,057,652. Please refer the footnotes from Form 4 for more information on the ownership. Icahn has won one of the four board seats at Forest Laboratories according to a preliminary tally of shareholder votes released at the company's annual meeting on August 15, 2012.

Forest Laboratories and Ironwood Pharmaceuticals (IRWD) submitted the New Drug Application for linaclotide for the treatment of irritable bowel syndrome with constipation (IBS-C) and chronic constipation. On April 23, 2012, the U.S. Food and Drug Administration extended the PDUFA action date by three months to complete its review.

Over the past three months, there have been a total of one insider transaction. The key financial metrics for Forest Laboratories are given below:

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

2. Children's Place Retail Stores, Inc (PLCE): The Children's Place Retail Stores operates as a children's specialty apparel retailer in North America. It provides apparel, accessories, and shoes for children from newborn to 10 years of age. The major competitors for Children's Place Retail are Carters (CRI), Gap (GPS), The Gymboree Corporation (GYMB) and Target (TGT). Children's Place Retail has a market cap of $1.36 billion and is currently trading around $55.95 with a 52-week range of $37.93 to $57.55. The stock has gained 5.33% year to date.

According to SEC filing on August 21, 2012, Matthews Norman S (Chairman of The Board) purchased a total of 13,350 shares at a total value of $748,001. Recently, Imperial Capital and FBR Capital raised their price target for Children's Place to $59.00 and $55.00 respectively. Over the past three months, there have been a total of 8 insider transactions with 6 Buy transactions. The key financial metrics for Children's Place Retail is given below:

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

3. Opko Health Inc (OPK): Opko Health is a pharmaceutical and diagnostics company, engages 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 $1.28 billion and is currently trading around $4.3 with a 52-week range of $3.52 to $5.85. The stock has fallen 12.24% year to date.

According to SEC filings on August 21, 2012, Frost Phillip MD Et Al (CEO & Chairman) purchased a total of 65,000 shares at a total value of $281,265. Frost Phillip has been a buyer of this stock almost every day this year. Over the past three months, there have been a total of 56 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.

Other notable insider buy transactions (minimum transaction value of $100,000) filed with the SEC on August 21, 2012 are as follows:

4. AmeriGas Partners LP (APU): AmeriGas Partners LP, through its subsidiary, AmeriGas Propane LP, operates as a retail and wholesale distributor of propane gas in the United States. AmeriGas Partners LP has a market cap of $2.37 billion and is currently trading around $41.47 with a 52-week range of $37.00 to $46.47. The stock has fallen 9.67% year to date. According to SEC filings on August 21, 2012, Turner K Rick (Director) purchased a total of 4,000 shares at a total value of $165,055. Please refer the footnotes from Form 4 for more information on the ownership.

5. Valhi, Inc (VHI): Valhi Inc operates in the chemicals, component products, and waste management businesses. Valhi Inc has a market cap of $4.17 billion and is currently trading around $12.29 with a 52-week range of $10.67 to $21.69. The stock has fallen 39.04% year to date. According to SEC filings on August 21, 2012, Simmons Harold C (Chairman of the Board) purchased a total of 10,000 shares at a total value of $124,194. Simmons Harold has been a buyer of this stock almost every day this year.

6. VIVUS, Inc (VVUS): VIVUS is a biopharmaceutical company, engaged in the development and commercialization of therapeutic drugs for underserved markets, including obesity and related morbidities, such as sleep apnea and diabetes, and men's sexual health. VIVUS has a market cap of $2.07 billion and is currently trading around $20.66 with a 52-week range of $6.83 to $31.21. The stock has gained 111.9% year to date. According to SEC filings on August 21, 2012, Mario Ernest (Director) purchased a total of 5,000 shares at a total value of $103,750.

Source: Some of the data is sourced from Google Finance, Nasdaq, Finviz, Fidelity, and SEC.gov.

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: Insiders Bought These Shares On August 21