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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 27, 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. Sonus Networks Inc (SONS): Sonus Networks provides infrastructure and subscriber solutions. It offers session border control (SBC), voice over Internet protocol (VoIP), and access and VoIP media gateway solutions that allow the delivery of voice and multimedia sessions over IP networks Sonus Networks has a market cap of $531.98 million and is currently trading around $1.9 with a 52-week range of $1.56 to $3.11. The stock has fallen 20.83% year to date.

According to SEC filings on August 27, 2012, Empire Capital Management LLC (Beneficial Owner) purchased a total of 587,579 shares at a total value of $1,065,136. Please refer the footnotes from Form 4 for more information on the ownership. Recently, Sonus Networks acquired Network Equipment Technologies Inc to expand its portfolio of Session Border Controller (SBC) solutions for enterprise customers, broader channel capability and a broad U.S. Federal Government installed base to leverage into SIP-enabled platforms. Over the past three months, there have been a total of 25 insider transactions with 20 Buy transactions. The key financial metrics for Sonus Networks are given below:

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

2. Alleghany Corporation (Y): Alleghany Corporation engages in the property and casualty, and surety insurance business in the United States. Alleghany Corporation has a market cap of $2.93 billion and is currently trading around $332.42 with a 52-week range of $277.03 to $349.64. The stock has gained 16.52% year to date.

According to SEC filings on August 27, 2012, Brandon Joseph Patrick (Executive Vice President) purchased a total of 1,506 shares at a total value of $498,449. Over the past three months, there have been a total of 12 insider transactions with 11 Buy transactions. The key financial metrics for Alleghany Corporation are given below:

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

3. Winthrop Realty Trust (FUR): Winthrop Realty Trust (WRT) is a diversified real estate investment trust (REIT) and conducts its business through its wholly owned operating partnership, WRT Realty L.P. It is engaged in the business of owning real property and real estate related assets. Winthrop Realty Trust has a market cap of $359.58 million and is currently trading around $10.87 with a 52-week range of $8.05 to $12.67. The stock has gained 6.88% year to date.

According to SEC filings on August 27, 2012, Ashner Michael L (Chairman and CEO) purchased a total of 22,400 shares at a total value of $239,440. Please refer the footnotes from Form 4 for more information on the ownership. Over the past three months, there have been a total of 9 insider transactions and all of them are Buy transactions. The key financial metrics for Winthrop Realty Trust 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 27, 2012, are as follows:

4. Polycom Inc (PLCM): Polycom provides standards-based unified communications solutions; and telepresence, video, voice, and infrastructure solutions based on open standards. Polycom has a market cap of $1.81 billion and is currently trading around $10.24 with a 52-week range of $7.45 to $25.05. The stock has fallen 37.18% year to date. According to SEC filings on August 27, 2012, Mercer D Scott (Director) purchased a total of 25,000 shares at a total value of $237,750.

5. 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 $1.34 billion and is currently trading around $4.5 with a 52-week range of $3.82 to $5.85. The stock has fallen 8.16% year to date. According to SEC filings on August 27, 2012, Frost Phillip Md Et Al (CEO & Chairman) purchased a total of 47,500 shares at a total value of $213,385.

6. General Communication, Inc (GNCMA): General Communication Inc provides communication services to residential and business customers under the GCI and Alaska Wireless brand names in Alaska. General Communication Inc has a market cap of $361.25 million and is currently trading around $8.63 with a 52-week range of $6.18 to $11.40. The stock has fallen 11.85% year to date. According to SEC filings on August 27, 2012, Duncan Ronald A (President) purchased a total of 19,000 shares at a total value of $164,980. Please refer the footnotes from Form 4 for more information on the ownership.

7. Valhi, Inc (VHI): Valhi Inc operates in the chemicals, component products, and waste management businesses. Valhi Inc has a market cap of $4.37 billion and is currently trading around $12.89 with a 52-week range of $10.67 to $21.69. The stock has fallen 36.06% year to date. According to SEC filings on August 27, 2012, Valhi Inc had two insiders combined purchase a total of 8,615 shares at a total value of $112,261.

8. Ferrellgas Partners, L.P. (FGP): Ferrellgas Partners LP engages in the distribution and sale of propane, and related equipment and supplies primarily in the United States. Ferrellgas Partners LP has a market cap of $1.58 billion and is currently trading around $19.96 with a 52-week range of $13.35 to $23.02. The stock has gained 5.22% year to date. According to SEC filings on August 27, 2012, Brown Tod D (EVP Ferrellgas, President BlueRhino) purchased a total of 9,000 shares at a total value of $104,670.

9. DTE Energy Company (DTE): DTE Energy Company operates as an electric and natural gas utility company in Michigan. DTE Energy has a market cap of $10.13 billion and is currently trading around $58.98 with a 52-week range of $47.03 to $62.56. The stock has gained 8.32% year to date. According to SEC filings on August 27, 2012, Nicholson James Bruce (Director) purchased a total of 1,700 shares at a total value of $100,242.

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 27