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 filed at the Securities and Exchange Commission on July 10, 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. Estee Lauder Companies Inc (EL): The Estee Lauder Companies engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. Estee Lauder has a market cap of $20.02 billion and is currently trading around $51.51 with a 52-week range of $40.76 to $65.60. The stock has fallen 8.28% year to date.

According to SEC filing on July 10, 2012, Freda Fabrizio (President and CEO) sold a total of 39,546 shares at a total value of $2,109,362 and the sale of the shares of Class A Common Stock were made pursuant to a plan intended to comply with Rule 10b5-1(c), previously entered into on December 8, 2011. Over the past three months, there have been a total of six insider transactions with five Sell transactions. Key financial metric for Estee Lauder is given below:

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

2. Credit Acceptance Corporation (CACC): Credit Acceptance Corporation, together with its subsidiaries, provides auto loans, and related products and services to consumers in the United States. Credit Acceptance Corp has a market cap of $2.36 billion and is currently trading around $92.33 with a 52-week range of $56.55 to $107.09.The stock has gained 12.21% year to date.

According to SEC filing on July 10, 2012, Vassalluzzo Scott J, Member of Section 13(d) group sold a total of 644,124 shares at a total value of $54,396,272. Over the past three months, there have been a total of two insider transactions with one Sell transaction. Key financial metric for Credit Acceptance Corp is given below:

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

3. HMS Holdings Corp (HMSY): HMS Holdings Corp provides cost containment services to government and private healthcare payers and sponsors. HMS Holdings Corp has a market cap of $2.95 billion and is currently trading around $34.27 with a 52-week range of $19.78 to $34.98.The stock has gained 7.16% year to date.

According to SEC filing on July 10, 2012, Dragonetti Christina (Chief Development Officer) sold a total of 12,000 shares at a total value of $413,640 and this transaction were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on December 13, 2011. Over the past three months, there have been a total of 16 insider transactions with 10 Sell transactions. Key financial metric for HMS Holdings Corp is given below:

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

Other notable transactions (minimum of 2000 shares) insider selling transactions filed at the SEC on July 10, 2012 are as follows:

  • 4. UDR, Inc (UDR): UDR, Inc. is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It owns, operates, acquires, renovates, develops, redevelops, and manages multifamily apartment communities. UDR has a market cap of $6.38 billion and is currently trading around $25.81 with a 52-week range of $20.04 to $27.26. According to SEC filing on July 10, 2012, Culwell Mark M (Senior Vice President) sold a total of 6,297 shares at a total value of $162,966.
  • 5. Morningstar, Inc (MORN): Morningstar, Inc., together with its subsidiaries, provides independent investment research to investors worldwide. Morningstar has a market cap of $2.95 billion and is currently trading around $59.49 with a 52-week range of $51.11 to $63.57. According to SEC filing on July 10, 2012, Phillips Donald James II (President, Fund Research) sold a total of 5,000 shares at a total value of $297,986 and this transaction were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on March 12, 2012.
  • 6. 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 $718.65 million and is currently trading around $9.77 with a 52-week range of $6.30 to $10.34. According to SEC filings on July 10, 2012, Virginia Retirement System (Beneficial Owner) sold a total of 75,916 shares at a total value of $742,458.
  • 7. Ciena Corporation (CIEN): Ciena Corporation provides equipment, software, and service solutions that support the transport, switching, aggregation, and management of voice, video, and data traffic on communications networks worldwide. Ciena has a market cap of $1.52 billion and is currently trading around $15.36 with a 52-week range of $9.89 to $17.91. According to SEC filing on July 10, 2012, Smith Gary B (President, CEO) sold a total of 6,200 shares at a total value of $97,313 and these sales were effected pursuant to 10b5-1 trading plan dated March 21, 2012.
  • 8. NuVasive, Inc (NUVA): NuVasive, Inc., a medical device company, engages in the design, development, and marketing of minimally disruptive surgical products and procedures for the spine. NuVasive has a market cap of $1.08 billion and is currently trading around $24.94 with a 52-week range of $11.02 to $34.01. According to SEC filing on July 10, 2012, NuVasive had two insiders combine sold a total of 2,250 shares at a total value of $56,919. Multiple insider selling are usually a negative sign.

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

Source: Notable Insider Sells Filed On July 10