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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 sell transactions for small-cap companies (market cap between $250 million and $2 billion) filed at the Securities and Exchange Commission on August 07, 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. MCG Capital Corporation (NASDAQ:MCGC): MCG Capital Corporation is a private equity firm specializing in investments in middle market companies. MCG Capital has a market cap of $337.03 million and is currently trading around $4.56 with a 52-week range of $3.40 to $5.07. The stock has gained 13.72% year to date.

According to SEC filings on August 07, 2012, Saitowitz Gavin (Director) sold a total of 211,551 shares at a total value of $954,095. Over the past three months, there have been a total of 8 insider transactions with 5 Sell transactions. The key financial metrics for MCG Capital are given below:

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

2. Thor Industries, Inc (NYSE:THO): Thor Industries engages in the manufacture and sale of various recreation vehicles, and small and mid-size buses, as well as related parts and accessories in the United States and Canada. Thor Industries has a market cap of $1.73 billion and is currently trading around $32.68 with a 52-week range of $17.62 to $34.70. The stock has gained 19.14% year to date.

According to SEC filings on August 07, 2012, Thompson Family Foundation, Inc (Member of 10% owner group) sold a total of 200,000 shares at a total value of $6,183,585, through Rule 10b5-1 trading plan. Over the past three months, there have been a total of 6 insider transactions with 3 Sell transactions. The key financial metrics for Thor Industries are given below:

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

3. United Online, Inc (NASDAQ:UNTD): United Online provides consumer products and services over the Internet in the United States, Europe, and internationally. United Online has a market cap of $485.62 million and is currently trading around $5.36 with a 52-week range of $3.63 to $6.19. The stock has fallen 1.47% year to date.

According to SEC filings on August 07, 2012, United Online had two insiders combine sold a total of 57,609 shares at a total value of $299,049. Multiple insider selling are usually a negative sign. Over the past three months, there have been a total of two insider transactions and all of them are Sell transactions. The key financial metrics for United Online 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 10,000 shares) from small-caps filed at the SEC on August 07, 2012, are as follows:

4. Insight Enterprises, Inc (NASDAQ:NSIT): Insight Enterprises provides information technology hardware, software, and service solutions to businesses and public sector clients. Insight Enterprises has a market cap of $807.66 million and is currently trading around $18.17 with a 52-week range of $13.01 to $23.14. The stock has gained 18.84% year to date. According to SEC filing on August 07, 2012, Insight Enterprises had four insiders combine sold a total of 40,000 shares at a total value of $734,725. Multiple insider selling are usually a negative sign.

5. Forest Oil Corporation (NYSE:FST): Forest Oil Corp is an independent oil and gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. Forest Oil has a market cap of $878.37 million and is currently trading around $7.43 with a 52-week range of $5.68 to $21.48. The stock has fallen 45.17% year to date. According to SEC filings on August 07, 2012, Mizenko Glen J (Senior Vice President, Mid-Continent Region) sold a total of 26,567 shares at a total value of $178,698.

6. J2 Global Inc (NASDAQ:JCOM): J2 Global provides cloud services to businesses of various sizes through the Internet worldwide. J2 Global has a market cap of $1.36 billion and is currently trading around $29.46 with a 52-week range of $23.55 to $32.67. The stock has gained 4.69% year to date. According to SEC filing on August 07, 2012, J2 Global had two insiders combined sell a total of 11,220 shares at a total value of $336,220.

7. DineEquity Inc (NYSE:DIN): DineEquity develops, franchises, and operates full-service restaurant chains in the United States and internationally. DineEquity has a market cap of $968.94 million and is currently trading around $52.89 with a 52-week range of $35.20 to $55.60. The stock has gained 25.3% year to date. According to SEC filing on August 07, 2012, Gordon Michael Stephen (Director) sold a total of 10,000 shares at a total value of $522,059.

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 7