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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. There are many reasons for insiders to sell their shares, but there is only one reason to buy. However, investors generally look for insiders selling pattern to get better insight on the company.

In this article, I will focus on notable insider sell transactions from large-cap companies (market cap greater than $10 billion) filed at the Securities and Exchange Commission on August 10, 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 Insider:

Corporate insiders are either a company's officers, directors, or any beneficial owners of more than ten percent 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 whenand 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. General Electric Company (NYSE:GE): General Electric Company operates as a technology and financial services company worldwide. General Electric has a market cap of $222.79 billion and is currently trading around $21.1 with a 52-week range of $14.02-$21.19. The stock has gained 17.81% year to date.

According to SEC filing on August 10, 2012, Krenicki John (Vice Chairman) sold a total of 179,693 shares at a total value of $3,780,741. On August 10, 2012, GE announced that it signed an agreement to acquire Naxys, a Norway-based supplier of leak detection and condition monitoring sensors for subsea applications. Over the past three months, there have been a total of 13 insider transactions with 12 Sell transactions. Key financial metrics for General Electric are given below.

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

2. CenturyLink, Inc (NYSE:CTL): CenturyLink operates as an integrated telecommunications company in the United States. CenturyLink has a market cap of $26.58 billion and is currently trading around $42.78 with a 52-week range of $31.16-$43.43. The stock has gained 15% year to date.

According to SEC filing on August 10, 2012, CenturyLink had four insiders combine sold a total of 160,600 shares at a total value of $6,917,281 and 160,000 shares were sold pursuant to a Rule 10b5-1 trading plan. Multiple insider selling are usually a negative sign. On August 8, 2012, Centurylink reported its second-quarter earnings results with EPS of $0.65 versus the analyst estimate of $0.62. Revenue for the quarter is $4.61 billion versus the consensus estimate of $4.57 billion. Over the past three months, there have been a total of 31 insider transactions with 18 Sell transactions. Key financial metrics for CenturyLink is given below.

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

3. HCA Holdings Inc (NYSE:HCA): HCA Holdings provides healthcare services in the United States. HCA Holdings has a market cap of $11.94 billion and is currently trading around $27.21 with a 52-week range of $17.20 to $31.39. The stock has gained 23.51% year to date.

According to SEC filing on August 10, 2012, Bank Of America Corp. (NYSE:BAC), Beneficial Owner sold a total of 145,491 shares at a total value of $3,915,090. Over the past three months, there have been a total of five insider transactions with four Sell transactions. Key financial metrics for HCA Holdings is given below.

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

Other notable insider selling transactions (minimum of 10,000 shares) from large-cap companies filed at the SEC on August 10, 2012 are as follows:

4. Stryker Corporation (NYSE:SYK): Stryker Corporation operates as a medical technology company. Stryker has a market cap of $20.19 billion and is currently trading around $53.06 with a 52-week range of $43.73-$57.15. The stock has gained 6.74% year to date. According to SEC filing on August 10, 2012, Stryker Ronda E (Director) sold a total of 18,000 shares at a total value of $952,897, through Rule 10b5-1 trading plan.

5. Altera Corporation (NASDAQ:ALTR): Altera is a semiconductor company that designs, manufactures, and markets programmable logic devices (PLD), HardCopy application-specific integrated circuit (ASIC) devices, pre-defined design building blocks, and associated development tools. Altera has a market cap of $11.88 billion and is currently trading around $37.12 with a 52-week range of $29.67-$41.63. The stock has gained 0.05% year to date. According to SEC filing on August 10, 2012, Papa George A (VP, WW Channel Sales) sold a total of 10,000 shares at a total value of $369,270.

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 Large-Cap Insider Sells Filed On August 10