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There are many different strategies to trade stocks, and one of them is to find 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 buy transactions for small-cap companies (market cap between $250 million and $2 billion) filed at the Securities and Exchange Commission on August 06, 2012. I have also included the key financial metrics for the first three companies. You can use this list as a potential starting point for your analysis.

Definition of an Insider: Corporate insiders are either a company's officers, directors, or any beneficial owners of more than 10% of a class of the company's equity securities registered under Section 12 of the Securities Exchange Act of 1934.

Rule 10b5-1 Definition: A rule established by the SEC that allows insiders of publicly traded corporations to create a trading plan of when and how to buy or sell shares in that company. Rule 10b5-1 allows major holders to buy or sell a predetermined number of shares at a predetermined time. 10b5-1 plans are used by many corporate insiders to avoid the accusations of insider trading, regardless of what nonpublic knowledge he/she may later come to possess.

1. The Ensign Group, Inc (NASDAQ:ENSG): The Ensign Group provides nursing and rehabilitative care services in Arizona, California, Colorado, Idaho, Iowa, Nebraska, Nevada, Oregon, Texas, Utah, and Washington. The Ensign Group has a market cap of $637.58 million and is currently trading around $29.71 with a 52-week range of $19.64 to $29.93. The stock has gained 21.27% year to date.

According to SEC filing on August 06, 2012, The Ensign Group had three insiders combine sold a total of 112,000 shares at a total value of $3,272,664, through Rule 10b5-1 trading plan. Multiple insider selling are usually a negative sign. Over the past three months, there have been a total of 51 insider transactions with 44 Sell transactions. The key financial metrics for The Ensign Group are given below:

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

2. USANA Health Sciences, Inc (NYSE:USNA): USANA Health Sciences develops, manufactures, distributes, and sells nutritional and personal care products worldwide. USANA Health Sciences has a market cap of $691.88 million and is currently trading around $46.56 with a 52-week range of $23.10 to $46.72. The stock has gained 53.28% year to date.

According to SEC filing on August 06, 2012, Wentz Dave (NYSE:CEO) sold a total of 60,000 shares at a total value of $2,743,600. Over the past three months, there have been a total of 20 insider transactions with 20 Sell transactions. The key financial metrics for USANA Health Sciences are given below:

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

3. 8x8, Inc (NASDAQ:EGHT): 8x8, Inc develops and markets telecommunications services for Internet protocol, telephony, and video applications. 8x8, Inc has a market cap of $418.72 million and is currently trading around $5.89 with a 52-week range of $3.00 to $5.90. The stock has gained 85.8% year to date.

According to SECs filing on August 06, 2012, Salame Mansour (Director) sold a total of 60,000 shares at a total value of $345,744, through Rule 10b5-1 trading plan. Over the past three months, there have been a total of 57 insider transactions with 56 Sell transactions. The key financial metrics for 8x8, Inc are given below:

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

Other notable insider selling transactions (minimum of 20,000 shares) from small-caps filed at the SEC on August 06, 2012, are as follows:

4. Arctic Cat Inc (NASDAQ:ACAT): Arctic Cat designs, engineers, manufactures, and markets snowmobiles and all-terrain vehicles (ATVs) under the Arctic Cat brand name. It also provides related parts, garments, and accessories. Arctic Cat has a market cap of $580.44 million and is currently trading around $44.41 with a 52-week range of $12.20 to $47.46. The stock has gained 90.19% year to date. According to SEC filings on August 06, 2012, Skime Roger H (VP Research & Development) sold a total of 30,000 shares at a total value of $1,313,700.

5. Rudolph Technologies Inc (NYSE:RTEC): Rudolph Technologies engages in the design, development, and manufacture of process control defect inspection, metrology, and process control software systems used by microelectronics device manufacturers.Rudolph Technologies has a market cap of $322.80 million and is currently trading around $10.00 with a 52-week range of $6.02 to $11.45. The stock has gained 7.99% year to date. According to SEC filings on August 06, 2012, Rudolph Technologies had three insiders combined sell a total of 27,919 shares at a total value of $271,953. Multiple insider selling are usually a negative sign.

6. Belo Corp (NYSE:BLC): Belo Corp operates as a television company in the United States. The company owns 20 television stations, including ABC, CBS, NBC, FOX, CW, and MyNetwork TV affiliates, as well as their associated Web sites in 15 markets. Belo Corp has a market cap of $684.26 million and is currently trading around $7.26 with a 52-week range of $4.36 to $9.00. The stock has gained 15.24% year to date. According to SEC filings on August 06, 2012, Moroney James M III (Director) sold a total of 26,506 shares at a total value of $185,807.

7. Team, Inc (NYSE:TISI): Team, Inc provides specialty maintenance and construction services for maintaining high temperature and high pressure piping systems and vessels that are utilized in heavy industries. Team, Inc has a market cap of $625.77 million and is currently trading around $31.43 with a 52-week range of $19.98 to $33.50. According to SEC filings on August 06, 2012, Owen Ted W (Executive Vice President & CFO) sold a total of 20,000 shares at a total value of $607,200.

Source: 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 August 6