Seeking Alpha
Profile| Send Message|
( followers)  

There are many different strategies to trade and one of them is to find insider trading of stocks. Any insider trading from corporate officers, key employees, vice presidents, directors, senior management or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. Legal insider trading cannot be based on material non-public information; however, most 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 sell transactions from small-cap companies (market cap between $250 million and $2 billion) filed at the Securities and Exchange Commission on July 03, 2012. I have also included the key financial position for the first three companies. You can use this list as a potential starting point for your analysis.

1. Arena Pharmaceuticals, Inc (ARNA): Arena Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, engages in discovering, developing, and commercializing oral drugs that target G protein-coupled receptors in the therapeutic areas of cardiovascular, central nervous system, inflammatory, and metabolic diseases. Arena has a market cap of $1.83 billion and is currently trading around $10.02 with a 52-week range of $1.23 to $13.50. According to SEC filing on July 03, 2012, Spector Steven W (EVP, General Counsel & Sec) sold a total of 156,665 shares at a total value of $1,565,297. Based on this filing, Spector Steven W also accumulated additional 136,665 shares through exercise of stock option. Over the past 3 months, there have been a total of two insider transactions and two of them are Sell transactions. On June 27, 2012, Arena Pharmaceuticals announced that the U.S FDA has approved BELVIQ (pronounced BEL-VEEK) for the weight management. Key financial metric for Arena is given below:

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

2. Blackrock Kelso Capital Corp (BKCC): BlackRock Kelso Capital Corporation is a private equity firm specializing in investments in middle market companies. Blackrock Kelso has a market cap of $731.15 million and is currently trading around $9.94 with a 52-week range of $6.30 to $10.34. According to SEC filing on July 03, 2012, Virginia Retirement System (beneficial owner) sold a total of 100,466 shares at a total value of $977,223. Over the past 3 months, there have been a total of 8 insider transactions with 7 Sell transactions. Key financial metric for Blackrock Kelso is given below:

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

3. Delek US Holdings, Inc (NYSE:DK): Delek US Holdings, Inc., an integrated energy company, engages in refining, marketing, supplying, and retailing petroleum products. Delek has a market cap of $1.08 billion and is currently trading around $18.55 with a 52-week range of $9.41 to $18.65. According to SEC filing on July 03, 2012, Delek had 3 insiders combine sold a total of 67,566 shares at a total value of $1,224,432. Multiple insider selling are usually a negative sign. Over the past 3 months, there have been a total of 16 insider transactions with 12 Sell transactions. Key financial metric for Delek is given below:

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

Other notable transactions above 40000 shares) insider selling transactions from small-cap companies filed at the SEC on July 03, 2012 are as follows:

  • OMNOVA Solutions Inc (NYSE:OMN): OMNOVA Solutions Inc. provides emulsion polymers, specialty chemicals, and decorative and functional surfaces for commercial, industrial, and residential end uses primarily in North America, Europe, and Asia. According to SEC filing on July 03, 2012, OMNOVA had 3 insiders combine sold a total of 54,123 shares at a total value of $433,405. There are also additional stock options exercised during the same period.
  • Greenhill & Co., Inc (NYSE:GHL): Greenhill & Co., Inc., an independent investment bank, provides financial advice on mergers, acquisitions, restructurings, financings, and capital raising to corporations, partnerships, institutions, and governments worldwide. According to SEC filing on July 03, 2012, Greenhill & Co Inc (Director by Deputization) sold a total of 40,000 shares at a total value of $363,046.
  • Navigant Consulting, Inc (NYSE:NCI): Navigant Consulting, Inc., a specialty consulting firm, provides services to companies in addressing the challenges of uncertainty, risk, distress, and significant change. According to SEC filing on July 03, 2012, Goodyear William M (Executive Chairman) sold a total of 40,000 shares at a total value of $500,800.

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

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

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.

Source: Notable Small-Cap Insider Sells Filed On July 3