Seeking Alpha
Profile| Send Message|
( followers)  

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 23, 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. Sealy Corporation (NYSE:ZZ): Sealy Corporation engages in the manufacture and marketing of bedding products. It offers mattresses and mattress foundations under the Sealy, Sealy Posturepedic, Stearns & Foster, and Bassett brand names in the Americas. Sealy Corporation has a market cap of $164.21 million and is currently trading around $1.58 with a 52-week range of $1.09 to $2.45. The stock has fallen 8.14% year to date.

According to SEC filings on August 23, 2012, H Partners Management Llc (Beneficial Owner) purchased a total of 1,800,000 shares at a total value of $2,880,000. Please refer the footnotes from Form 4 for more information on the ownership. Over the past three months, there have been a total of 7 insider transactions with one Buy transaction. The key financial metrics for Sealy Corporation are given below:

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

2. Zipcar Inc (ZIP): Zipcar Inc operates a car sharing network. It provides self-service vehicles that are located in reserved parking spaces throughout the neighborhoods where they live and work to its members. Zipcar has a market cap of $312.08 million and is currently trading around $7.80 with a 52-week range of $6.50 to $22.00. The stock has fallen 41.88% year to date.

According to SEC filings on August 23, 2012, Case Stephen M (Beneficial Owner) purchased a total of 361,989 shares at a total value of $2,878,103. Please refer the footnotes from Form 4 for more information on the ownership. 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 Zipcar are given below:

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

3. H&E Equipment Services, Inc (NASDAQ:HEES): H&E Equipment Services operates as an integrated equipment services company. H&E Equipment Services has a market cap of $633.57 million and is currently trading around $18.03 with a 52-week range of $6.80 to $21.00. The stock has gained 34.35% year to date.

According to SEC filings on August 23, 2012, Arnold Paul (Director) purchased a total of 10,000 shares at a total value of $186,764. Over the past three months, there have been a total of 18 insider transactions with 6 Buy transactions. The key financial metrics for H&E Equipment Services 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 23, 2012, are as follows:

4. Opko Health Inc (NYSE: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 $1.35 billion and is currently trading around $4.52 with a 52-week range of $3.78 to $5.85. The stock has fallen 7.76% year to date. According to SEC filings on August 23, 2012, Frost Phillip MD Et Al (CEO & Chairman) purchased a total of 35,000 shares at a total value of $153,402.

5. Valhi, Inc (NYSE:VHI): Valhi Inc operates in the chemicals, component products, and waste management businesses. Valhi Inc has a market cap of $4.39 billion and is currently trading around $12.94 with a 52-week range of $10.67 to $21.69. The stock has fallen 35.81% year to date. According to SEC filings on August 23, 2012, Simmons Harold C (Chairman of the Board) purchased a total of 10,100 shares at a total value of $131,240.

6. Invesco Mortgage Capital Inc (NYSE:IVR): Invesco Mortgage Capital is a real estate investment trust, primarily focused on investing in, financing and managing residential and commercial mortgage-backed securities and mortgage loans, which it collectively refers to as its target assets. Invesco Mortgage Capital has a market cap of $2.29 billion and is currently trading around $19.81 with a 52-week range of $12.55 to $20.00. The stock has gained 41% year to date. According to SEC filings on August 23, 2012, Day John (Director) purchased a total of 6,000 shares at a total value of $149,700.

7. Chesapeake Lodging Trust (NYSE:CHSP): Chesapeake Lodging Trust is a self-advised real estate investment trust (REIT), focused on investments primarily in upper-upscale hotels in business and convention markets and, on a selective basis, select-service and extended-stay hotels in urban settings or locations in the United States of America. Chesapeake Lodging Trust has a market cap of $570.95 million and is currently trading around $17.77 with a 52-week range of $10.69 to $18.65. The stock has gained 14.94% year to date. According to SEC filings on August 23, 2012, Vicari Douglas W (EVP, CFO, & Treasurer) purchased a total of 5,000 shares at a total value of $126,000.

8. Cabelas Inc (NYSE:CAB): Cabela's Inc operates as a specialty retailer and direct marketer of hunting, fishing, camping, and related outdoor merchandise. Cabelas Inc has a market cap of $3.30 billion and is currently trading around $47.19 with a 52-week range of $19.12 to $48.23. The stock has gained 85.64% year to date. According to SEC filings on August 23, 2012, Edmondson John (Director) purchased a total of 2,500 shares at a total value of $117,900.

9. TransAtlantic Petroleum Ltd (NYSEMKT:TAT): TransAtlantic Petroleum Ltd is an international oil and natural gas company, engages in the acquisition, exploration, development, and production of oil and natural gas properties. TransAtlantic Petroleum Ltd has a market cap of $392.20 million and is currently trading around $1.07 with a 52-week range of $0.57 to $1.67. The stock has fallen 19.08% year to date. According to SEC filings on August 23, 2012, Mitchell Noah Malone III (Chief Executive Officer) purchased a total of 100,000 shares at a total value of $107,697.

10. Forum Energy Technologies Inc (NYSE:FET): Forum Energy Technologies provides manufactured technologies and applied products to the energy industry. Forum Energy has a market cap of $1.90 billion and is currently trading around $22.14 with a 52-week range of $18.60 to $23.86. The stock has gained 1.79% year to date. According to SEC filings on August 23, 2012, Jones Charles E (Executive VP, President-Drilling & Subses) purchased a total of 5,000 shares at a total value of $100,000.

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 23