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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 08, 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. 8x8, Inc (EGHT): 8x8, Inc develops and markets telecommunications services for Internet protocol (IP), telephony, and video applications. 8x8, Inc has a market cap of $415.17 million and is currently trading around $5.84 with a 52-week range of $3.11 to $5.95. The stock has gained 84.23% year to date.

According to SEC filing on August 08, 2012, Salame Mansour (Director) sold a total of 37,000 shares at a total value of $216,473, through Rule 10b5-1 trading plan. The current stock price is fairly close to its 52-week high. Over the past three months, there have been a total of 59 insider transactions with 58 Sell transactions. Key financial metrics for 8x8, Inc is given below:

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

2. Sovran Self Storage Inc (SSS): Sovran Self Storage operates as a real estate investment trust (REIT). Sovran Self Storage has a market cap of $1.66 billion and is currently trading around $57.36 with a 52-week range of $33.37 to $57.99. The stock has gained 34.43% year to date.

According to SEC filing on August 08, 2012, Sovran Self Storage had four insiders combine sold a total of 37,000 shares at a total value of $2,120,966. Multiple insider selling are usually a negative sign. Over the past three months, there have been a total of 9 insider transactions with 5 Sell transactions. Key financial metrics for Sovran Self Storage is given below:

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

3. Journal Communications, Inc (JRN): Journal Communications operates as a media company in the United States. Journal Communications has a market cap of $317.06 million and is currently trading around $5.77 with a 52-week range of $2.69 to $5.86. The stock has gained 31.14% year to date.

According to SEC filing on August 08, 2012, Meissner David G (Director) sold a total of 35,076 shares at a total value of $203,455, through Rule 10b5-1 trading plan. Over the past three months, there have been a total of one insider sell transaction. Key financial metrics for Journal Communications is given below:

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

Other notable insider selling transactions (minimum of 9,000 shares) from small-caps filed at the SEC on August 08, 2012, are as follows:

4. Iridium Communications Inc (IRDM): Iridium Communications provides mobile voice and data communications services through satellites to businesses, the U.S. and foreign governments, non-governmental organizations, and consumers worldwide. Iridium Communications has a market cap of $529.17 million and is currently trading around $7.15 with a 52-week range of $5.50 to $9.73. The stock has fallen 7.26% year to date. According to SEC filing on August 08, 2012, Greenhill & Co Inc (GHL, Beneficial Owner) sold a total of 30,000 shares at a total value of $212,999, through Rule 10b5-1 trading plan.

5. Air Methods Corporation (AIRM): Air Methods Corporation provides air medical emergency transport services and systems in the United States. Air Methods Corporation has a market cap of $1.47 billion and is currently trading around $114.52 with a 52-week range of $56.17 to $116.75. The stock has gained 35.61% year to date. According to SEC filing on August 08, 2012, Air Methods Corporation had three insiders combine sold a total of 27,202 shares at a total value of $3,101,677. Multiple insider selling are usually a negative sign.

6. Acme Packet, Inc (APKT): Acme Packet provides session delivery network solutions that enable the delivery of voice, video, data, and unified communications services and applications across Internet protocol networks. Acme Packet has a market cap of $1.17 billion and is currently trading around $17.05 with a 52-week range of $13.26 to $57.24. The stock has fallen 44.84% year to date. According to SEC filing on August 08, 2012, Hourihan James J (SVP of Corporate Strategy) sold a total of 20,000 shares at a total value of $318,970, through Rule 10b5-1 trading plan.

7. Virtusa Corporation (VRTU): Virtusa provides information technology (IT) consulting, technology implementation, and application outsourcing services in North America, Europe, the Middle East, and Asia. Virtusa has a market cap of $401.15 million and is currently trading around $15.75 with a 52-week range of $11.23 to $17.57. The stock has gained 8.77% year to date. According to SEC filing on August 08, 2012, Canekeratne Kris A (Chairman & CEO) sold a total of 18,000 shares at a total value of $284,831, through Rule 10b5-1 trading plan.

8. RF Micro Devices, Inc (RFMD): RF Micro Devices designs, develops, manufactures, and markets radio frequency (RF) components and compound semiconductor technologies primarily in the United States and Asia. RF Micro Devices has a market cap of $1.01 billion and is currently trading around $3.64 with a 52-week range of $3.45 to $7.89. The stock has fallen 32.59% year to date. According to SEC filing on August 08, 2012, RF Micro Devices had two insiders combine sold a total of 15,366 shares at a total value of $56,960, through Rule 10b5-1 trading plan.

9. Select Comfort Corp (SCSS): Select Comfort engages in the design, manufacture, marketing, distribution, and retail of adjustable-firmness mattresses and other sleep-related products primarily in the United States and Canada. Select Comfort has a market cap of $1.59 billion and is currently trading around $28.29 with a 52-week range of $11.97 to $35.60. The stock has gained 30.43% year to date. According to SEC filing on August 08, 2012, Shames Ervin R (Director) sold a total of 15,000 shares at a total value of $432,979.

10. Piper Jaffray Companies (PJC): Piper Jaffray Companies provides investment banking, institutional brokerage, asset management, and related financial services to corporations, private equity groups, public entities, non-profit entities, and institutional investors in the United States, Asia, and Europe. Piper Jaffray Companies has a market cap of $390.19 million and is currently trading around $21.97 with a 52-week range of $16.72 to $27.69. The stock has gained 8.76% year to date. According to SEC filing on August 08, 2012, O'Brien Brien M (Head of Asset Management) sold a total of 15,000 shares at a total value of $323,884.

11. Acacia Research Corporation (ACTG): Acacia Research Corporation acquires, develops, licenses, and enforces patented technologies in the United States. Acacia Research has a market cap of $1.33 billion and is currently trading around $26.71 with a 52-week range of $23.24 to $47.24. The stock has fallen 26.84% year to date. According to SEC filing on August 08, 2012, Lee Dooyong (Executive Vice President) sold a total of 13,000 shares at a total value of $329,703, through Rule 10b5-1 trading plan.

12. Team, Inc (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 $615.22 million and is currently trading around $30.9 with a 52-week range of $19.98 to $33.50. The stock has gained 6.33% year to date. According to SEC filing on August 08, 2012, Peiser Robert A (Director) sold a total of 9,935 shares at a total value of $310,936.

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 8