Notable Large-Cap Insider Sells Filed On July 3

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 |  Includes: CVS, DFS, FDX, GILD, HCP, K, MAT
by: StockPandit

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 large-cap companies (market cap greater than $10 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. CVS Caremark Corporation (NYSE:CVS): CVS Caremark provides pharmacy health care services in the United States. CVS has a market cap of $61.29 billion and is currently trading around $47.83, with a 52-week range of $31.30 to $48.09.

According to SECs filings on July 03, 2012, Merlo Larry J (President and CEO) sold a total of 161,359 shares at a total value of $7,576,612. Over the past three months, there have been a total of 12 insider transactions, with 5 Sell transactions. The key financial metrics for CVS are given below:

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

2. Gilead Sciences, Inc (NASDAQ:GILD): Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes human therapeutics for the treatment of life threatening diseases worldwide.Gilead Sciences has a market cap of $39.44 billion and is currently trading around $52.08 with a 52-week range of $34.45 to $56.50.

According to SEC filings on July 03, 2012, Martin John C (Chairman and CEO) sold a total of 145,450 shares at a total value of $7,464,683. Based on this filing, Martin John C also acquired additional 145,450 shares through exercise of stock option. Over the past three months, there have been a total of 8 insider transactions and all of them are Sell transactions. The key financial metrics for Gilead Sciences are given below:

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

3. Kellogg Company (NYSE:K): Kellogg Company, together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience food products primarily in North America, Europe, Latin America, and the Asia Pacific. Kellogg has a market cap of $17.71 billion and is currently trading around $49.54 with a 52-week range of $47.88to $56.39.

According to SEC filings on July 03, 2012, Kellogg W K Foundation Trust sold a total of 115,800 shares at a total value of $5,732,818. Over the past three months, there have been a total of 16 insider transactions, with 6 Sell transactions. The key financial metrics for Kellogg are given below:

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

Other notable transactions (above 40,000 shares) insider selling transactions from large-cap companies filed at the SEC on July 03, 2012 are as follows:

  • Mattel, Inc. (NASDAQ:MAT): Mattel, Inc., together with its subsidiaries, designs, manufactures, and markets various toy products. Its products comprise fashion dolls and accessories, vehicles and play sets, and games and puzzles. According to SEC filings on July 03, 2012, Mattel had two insiders combine sold a total of 91, 872 shares at a total value of $2,992,379.
  • HCP, Inc (NYSE:HCP): HCP, Inc. is an independent hybrid real estate investment trust. The fund invests in real estate markets of the United States. According to SEC filings on July 03, 2012, HCP had four insiders combine sold a total of 69,831 shares at a total value of $3,080,945. Multiple insider selling are usually a negative sign.
  • FedEx Corporation (NYSE:FDX): FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. According to SEC filings on July 03, 2012, Graf Alan B Jr (EVP Chief Financial Officer) sold a total of 50,000 shares at a total value of $4,498,100.
  • Discover Financial Services (NYSE:DFS): Discover Financial Services, a bank holding company, offers direct banking and payment services in the United States. According to SEC filings on July 03, 2012, Panzarino James V (EVP, Chief Credit Risk Officer) sold a total of 40,000 shares at a total value of $1,370,400.

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

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in CVS, DFS, FDX, GILD, HCP, K, MAT over the next 72 hours.

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. The information and data is believed to be accurate, but no guarantees or representations are made.