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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 6, 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. The Middleby Corporation (MIDD): The Middleby Corporation, through its subsidiaries, engages in the design, manufacture, marketing, distribution, and service of commercial food service and food processing equipment in the United States, Canada, Asia, Europe, the Middle East, and Latin America. Middleby has a market cap of $1.86 billion and is currently trading around $99.17 with a 52-week range of $65.39 to $104.82. The stock has gained 5.45% year to date.

According to SEC filing on July 6, 2012, Bassoul Selim A (CEO, Chairman, President) sold a total of 100,000 shares at a total value of $10,000,000 and these shares sold pursuant to existing 10b5-1 plan. Over the past three months, there have been a total of six insider transactions and all of them are Sell transactions. Key financial metric for Middleby is given below:

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

2. OMNOVA Solutions Inc (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. OMNOVA has a market cap of $377.37 million and is currently trading around $8.17 with a 52-week range of $3.07 to $8.24. The stock has gained 77.22% year to date.

According to SEC filing on July 6, 2012, Lemay James C (Sr VP Corp Dev Gen Counsel) sold a total of 35,000 shares at a total value of $283,934. Over the past three months, there have been a total of 19 insider transactions with 18 Sell transactions. Key financial metric for OMNOVA is given below:

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

3. Intersections Inc (INTX): Intersections Inc. provides subscription based consumer protection services and other consumer products and services primarily in the United States. Intersections has a market cap of $292.24 million and is currently trading around $16.52 with a 52-week range of $9.42 to $23.00. The stock has gained 48.96% year to date.

According to SEC filing on July 6, 2012, Intersections had 2 insiders combined who sold a total of 32,617 shares at a total value of $526,001. Multiple insider selling are usually a negative sign. Over the past three months, there have been a total of 25 insider transactions and all of them are Sell transactions. Key financial metric for Intersections is given below:

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

Other notable transactions (minimum of 5000 shares) insider selling transactions from small-cap companies filed at the SEC on July 6, 2012 are as follows:

4. Barnes & Noble, Inc (BKS): Barnes & Noble operates as a content, commerce, and technology company in the United States. Barnes & Noble has a market cap of $971.85 million and is currently trading around $16.19 with a 52-week range of $9.35 to $26.00. According to SEC filing on July 6, 2012, Lynch William (Chief Executive Officer) sold a total of 30,000 shares at a total value of $524,274.

5. Nelnet, Inc (NNI): Nelnet, Inc., an education services company, focuses on providing fee-based processing services, and education-related products and services in the areas of loan financing, loan servicing, payment processing, and enrollment services. Nelnet has a market cap of $1.12 billion and is currently trading around $23.63 with a 52-week range of $16.50 to $27.20. According to SEC filing on July 06, 2012, Muhleisen Angie (Beneficiary Owner) sold a total of 12,500 shares at a total value of $296,031. For additional information about this transaction, please refer to the footnote section of the Form 4.

6. IPC The Hospitalist Company, Inc (IPCM): IPC The Hospitalist Company, Inc., through its subsidiaries, provides hospitalist services in the United States. IPC has a market cap of $731.07 million and is currently trading around $44.12 with a 52-week range of $29.70 to $52.23. According to SEC filing on July 6, 2012, Singer Adam D MD (CEO & Chairman) sold a total of 6,000 shares at a total value of $269,078.

7. Neenah Paper, Inc (NP): Neenah Paper, Inc., together with its subsidiaries, engages in the production of technical products and fine papers worldwide. Neenah Paper has a market cap of $428.68 million and is currently trading around $27.08 with a 52-week range of $12.92 to $31.66. According to SEC filing on July 6, 2012, Erwin Sean T (Director) sold a total of 5,000 shares at a total value of $139,750. Over the past three months, there have been a total of 25 insider transactions with 25 Sell transactions.

Sources: 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.


Source: Notable Small-Cap Insider Sells Filed On July 6