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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 a 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 29, 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 (NYSE: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 $9.21 billion and is currently trading around $34.66 with a 52-week range of $28.47 to $36.44. The stock has gained 14.54% year to date.

According to SEC filings on August 29, 2012, Icahn Carl C (Beneficial Owner) purchased a total of 331,406 shares at a total value of $11,483,177. Please refer the footnotes from Form 4 for more information on the ownership. On August 27, 2012, Forest Laboratories announced that its has adopted a stockholder rights plan and declared a dividend distribution of one Preferred Share Purchase Right on each outstanding share of Forest Laboratories common stock. The newly constituted Board of Directors adopted the stockholder rights plan in response to the recent rapid accumulation of a significant portion of Forest's outstanding common stock.

Since August 17, 2012, Carl Ichan has purchased 3,637,254 shares of Forest Laboratories. Over the past three months, there have been a total of 15 insider transactions and all of them are Buy transactions. 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. Universal Display Corporation (PANL): Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode technologies and materials for use in flat panel display, solid-state lighting, and other product applications. Universal Display Corp has a market cap of $1.89 billion and is currently trading around $40.68 with a 52-week range of $25.45 to $60.28. The stock has gained 10.87% year to date.

According to SEC filings on August 29, 2012, Discovery Global Opportunity Master Fund, Ltd (Beneficial Owner) purchased a total of 139,400 shares at a total value of $5,601,542. Over the past three months, there have been a total of six insider transactions and all of them are Buy transactions. The key financial metrics for Universal Display Corp are given below:

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

3. ServiceSource International Inc (NASDAQ:SREV): ServiceSource International manages the service contract renewals process of maintenance, support and subscription agreements for technology and technology-enabled healthcare, and life sciences companies. ServiceSource has a market cap of $686.18 million and is currently trading around $9.16 with a 52-week range of $7.73 to $18.53. The stock has fallen 41.62% year to date.

According to SEC filings on August 29, 2012, Reynolds Barry D (Director) purchased a total of 356,496 shares at a total value of $3,214,038. Please refer the footnotes from Form 4 for more information on the ownership. Over the past three months, there have been a total of 24 insider transactions with four Buy transactions. The key financial metrics for ServiceSource 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 29, 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 Corp has a market cap of $340.73 million and is currently trading around $4.61 with a 52-week range of $3.40 to $5.07. The stock has gained 14.96% year to date. According to SEC filings on August 29, 2012, Neu Richard W (Chief Executive Officer) purchased a total of 72,577 shares at a total value of $329,478.

5. Rouse Properties Inc (NYSE:RSE): Rouse Properties owns and manages regional malls in the United States. Rouse Properties has a market cap of $676.42 million and is currently trading around $13.74 with a 52-week range of $10.25 to $15.04. The stock has gained 26.29% year to date. According to SEC filings on August 29, 2012, Silberfein Andrew (President & CEO) purchased a total of 15,000 shares at a total value of $207,468.

6. 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 $1.33 billion and is currently trading around $4.45 with a 52-week range of $3.82 to $5.85. The stock has fallen 9.18% year to date. According to SEC filings on August 29, 2012, Frost Phillip Md Et Al (CEO & Chairman) purchased a total of 45,000 shares at a total value of $200,622. Please refer the footnotes from Form 4 for more information on the ownership.

7. Midstates Petroleum Company Inc (NYSE:MPO): Midstates Petroleum Company engages in oil and gas exploration and development. Midstates Petroleum Company has a market cap of $533.07 million and is currently trading around $8.01 with a 52-week range of $7.30 to $16.95. The stock has fallen 46.6% year to date. According to SEC filings on August 29, 2012, Crum John A (President and CEO) purchased a total of 25,000 shares at a total value of $200,637.

8. Winmark Corporation (NASDAQ:WINA): Winmark Corporation operates as a franchisor of four retail store concepts that buy, sell, trade, and consign merchandise. Winmark Corp has a market cap of $256.03 million and is currently trading around $50.9 with a 52-week range of $43.07 to $71.49. The stock has fallen 11.28% year to date. According to SEC filings on August 29, 2012, Morgan John L (Chairman & CEO) purchased a total of 2,000 shares at a total value of $101,840.

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 29