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There are many different strategies to trade stocks and one of them is to find the 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 insight into the growth of the 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 13, 2012. I have also included key financial metrics for the first three companies. You can use this list as a potential starting point for your analysis.

1. Iridium Communications Inc (IRDM): Iridium Communications Inc. is a provider of mobile voice and data communications services via satellite. Iridium has a market cap of $697.69 million and is currently trading around $9.53 with a 52-week range of $5.50 to $9.73. The stock has gained 23.61% year to date.

According to an SEC filing on July 13, 2012, Greenhill & Co Inc (NYSE:GHL), Director by Deputization sold a total of 45,000 shares at a total value of $426,332 through Rule 10b5-1 trading plan. Iridium is scheduled to report its second-quarter earnings results on August 2, 2012, before market open. Over the past three months, there have been a total of 57 insider transactions, and all of them are 57 sell transactions. Key financial metric for Iridium is given below:

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

2. Ixia (XXIA): Ixia supplies converged network and application performance testing solutions in the United States and internationally. Ixia has a market cap of $897.50 million and is currently trading around $12.6 with a 52-week range of $7.08 to $14.88. The stock has gained 19.89% year to date.

According to an SEC filing on July 13, 2012, Rhone Trustees (Bahamas) Ltd (Beneficial Owner) sold a total of 43,376 shares at a total value of $527,877. On July 2, 2012, Ixia announced that it had entered into a definitive agreement to acquire BreakingPoint Systems for $160 million in cash, subject to adjustment based on BreakingPoint's net working capital and cash at closing. Over the past three months, there have been a total of eight insider transactions with two sell transactions. Key financial metric for Ixia is given below:

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

3. Monotype Imaging Holdings Inc (TYPE): Monotype Imaging is a provider of text imaging solutions. The company's end user and embedded solutions for print, Web and mobile environments enable people to create and consume content on any and every device. Monotype Imaging has a market cap of $524.41 million and is currently trading around $14.34 with a 52-week range of $9.98 to $17.02. The stock has fallen 8.02% year to date.

According to anSEC filing on July 13, 2012, Shaw Douglas J (President, CEO and Director) sold a total of 25,000 shares at a total value of $351,708 through Rule 10b5-1 trading plan. Monotype Imaging is scheduled to report its second-quarter earnings results on July 27, 2012, before market open. Over the past three months, there have been a total of 39 insider transactions with 34 sell transactions. Key financial metric for Monotype Imaging is given below:

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

Other notable transactions (minimum of 10000 shares) insider selling transactions from small-cap companies filed at the SEC on July 13, 2012 are as follows:

4. BlackRock Kelso Capital Corp (BKCC): BlackRock Kelso Capital Corporation is an externally-managed, non-diversified closed-end management investment company. BlackRock Kelso has a market cap of $702.82 million and is currently trading around $9.65 with a 52-week range of $6.30 to $10.34. According to SEC filings on July 13, 2012, Virginia Retirement System (Beneficial Owner) sold a total of 40,937 shares at a total value of $395,112.

5. USANA Health Sciences, Inc (USNA): USANA Health Sciences, Inc. develops, manufactures, distributes, and sells nutritional and personal-care products worldwide. USANA has a market cap of $609.11 million and is currently trading around $40.99 with a 52-week range of $23.10 to $42.14. According to an SEC filing on July 13, 2012, Gull Holdings Ltd (Beneficial Owner) and Wentz Myron W (Director) combined sold a total of 14,000 shares at a total value of $554,540 through a Rule 10b5-1 trading plan. Gull Holdings Ltd is an entity owned and controlled by Dr. Myron W Wentz.

Rule 10b5-1 Definition: A rule established by the SEC that allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own. Rule 10b5-1 allows major holders to sell a predetermined number of shares at a predetermined time.

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 Small-Cap Insider Sells Filed On July 13