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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 30, 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. Zipcar Inc (ZIP): Zipcar Inc, together with its subsidiaries, operates a car sharing network. Zipcar has a market cap of $323.28 million and is currently trading around $8.08 with a 52-week range of $6.50 to $22.00. The stock has fallen 39.79% year to date.

According to SEC filings on August 30, 2012, Case Stephen M (Beneficial Owner) purchased a total of 255,311 shares at a total value of $1,978,660. Please refer the footnotes from Form 4 for more information on the ownership. Recently, the City of Houston selected Zipcar as its fleet technology provider through a competitive bidding process. On August 22, 2012, Zipcar announced a new partnership with the City of Houston to launch a municipal electric vehicle fleet sharing program, called Houston Fleet Share.

Over the past three months, there have been a total of 11 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.

2. Axis Capital Holdings Limited (AXS): AXIS Capital Holdings Limited, through its subsidiaries, provides various insurance and reinsurance products to insureds and reinsureds worldwide. Axis Capital Holdings Limited has a market cap of $4.28 billion and is currently trading around $33.63 with a 52-week range of $24.80 to $35.12. The stock has gained 5.23% year to date.

According to SEC filings on August 30, 2012, Nichols John Drake (CEO, AXIS Re) purchased a total of 30,000 shares at a total value of $1,008,141. The details of this transaction can be found in Exhibit 1. Over the past three months, there have been a total of 8 insider transactions with two Buy transactions. The key financial metrics for Axis Capital Holdings Limited are given below:

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

3. Sonus Networks, Inc (SONS): Sonus Networks provides infrastructure and subscriber solutions. It offers session border control, 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 $534.78 million and is currently trading around $1.91 with a 52-week range of $1.56 to $3.11. The stock has fallen 20.42% year to date.

According to SEC filings on August 30, 2012, Empire Capital Management LLC (Beneficial Owner) purchased a total of 290,149 shares at a total value of $559,988. Please refer the footnotes from Form 4 for more information on the ownership. Since May 2012, Empire Capital Management LLC has purchased 7,950,149 shares of Sonus Networks.

Over the past three months, there have been a total of 28 insider transactions with 23 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.

Other notable insider buy transactions (minimum transaction value of $100,000) filed with the SEC on August 30, 2012, are as follows:

4. Alleghany Corporation (Y): Alleghany Corporation engages in the property and casualty, and surety insurance business in the United States. Alleghany Corp has a market cap of $2.95 billion and is currently trading around $334.70 with a 52-week range of $277.03 to $349.64. The stock has gained 17.32% year to date. According to SEC filings on August 30, 2012, Alleghany Corp had two insiders (Brandon Joseph Patrick - Executive Vice President and Dalrymple Christopher Kent - SVP, General Counsel) combined purchase a total of 1,000 shares at a total value of $334,247.

5. Delta Air Lines, Inc (DAL): Delta Air Lines provides scheduled air transportation for passengers and cargo in the United States and internationally. Delta Air Lines has a market cap of $7.22 billion and is currently trading around $8.55 with a 52-week range of $6.64 to $12.25. The stock has gained 5.69% year to date. According to SEC filings on August 30, 2012, Woodrow Kenneth (Director) purchased a total of 25,000 shares at a total value of $217,928.

6. MCG Capital Corporation (MCGC): MCG Capital Corporation is a private equity firm specializing in investments in middle market companies. MCG Capital Corp has a market cap of $337.03 million and is currently trading around $4.56 with a 52-week range of $3.40 to $5.07. The stock has gained 13.72% year to date. According to SEC filings on August 30, 2012, Neu Richard W (Chief Executive Officer) purchased a total of 31,345 shares at a total value of $143,874.

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 30