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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 mid-cap companies (market cap between $2 billion and $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. Lamar Advertising Company (NASDAQ:LAMR): Lamar Advertising Company provides outdoor advertising services. Lamar Advertising has a market cap of $3.08 billion and is currently trading around $33.00 with a 52-week range of $16.49 to $35.99. The stock has gained 20% year to date.

According to SEC filing on August 10, 2012, SPO Advisory Corp (Beneficial Owner) sold a total of 3,100,000 shares at a total value of $104,617,000. Please refer the footnote from Form 4 for more detail about the ownership. Over the past three months, there have been a total of 12 insider transactions with 5 Sell transactions. Key financial metrics for Lamar Advertising is given below:

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

2. Western Refining, Inc (NYSE:WNR): Western Refining operates as an independent crude oil refiner and marketer of refined products. Western Refining has a market cap of $2.37 billion and is currently trading around $26.08 with a 52-week range of $11.17 to $26.91. The stock has gained 96.24% year to date.

According to SEC filing on August 10, 2012, Schmidt Ralph A (Director) sold a total of 100,000 shares at a total value of $2,619,890. Also, Schmidt Ralph transferred 10,000 shares to a charity. The current stock price is fairly close to its 52-week high. Over the past three months, there have been a total of 46 insider transactions and all of them are Sell transactions. Key financial metrics for Western Refining is given below:

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

3. Leggett & Platt, Inc (NYSE:LEG): Leggett & Platt designs and produces various engineered components and products worldwide. Leggett & Platt has a market cap of $3.25 billion and is currently trading around $23.12 with a 52-week range of $18.37 to $24.84. The stock has gained 0.35% year to date.

According to SEC filing on August 10, 2012, Glassman Karl G (COO & Executive Vice President) sold a total of 43,970 shares at a total value of $1,023,182. The current stock price is fairly close to its 52-week high. Over the past three months, there have been a total of 81 insider transactions with 5 Sell transactions. Key financial metrics for Leggett & Platt 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 10,000 shares) from mid-cap companies filed at the SEC on August 10, 2012 are as follows:

4. Interpublic Group of Companies, Inc (NYSE:IPG): The Interpublic Group of Companies provides advertising and marketing services worldwide. Interpublic Group of Companies has a market cap of $4.69 billion and is currently trading around $10.74 with a 52-week range of $6.73 to $12.17. The stock has gained 10.38% year to date. According to SEC filing on August 10, 2012, Carroll Christopher F (SVP, Controller & CAO) sold a total of 30,000 shares at a total value of $312,360.

5. CMS Energy Corporation (NYSE:CMS): CMS Energy Corporation operates as an energy company primarily in Michigan. CMS Energy has a market cap of $6.33 billion and is currently trading around $23.89 with a 52-week range of $18.12 to $24.98. The stock has gained 8.2% year to date. According to SEC filing on August 10, 2012, Way Kenneth L (Director) sold a total of 20,000 shares at a total value of $474,800.

6. Rackspace Hosting, Inc (NYSE:RAX): Rackspace Hosting provides cloud computing services, managing Web-based IT systems for small and medium-sized businesses, and large enterprises worldwide. Rackspace has a market cap of $7.38 billion and is currently trading around $54.41 with a 52-week range of $30.34 to $60.55. The stock has gained 26.51% year to date. According to SEC filing on August 10, 2012, Still George J Jr (Director) sold a total of 20,000 shares at a total value of $1,071,200.

7. RPM International Inc (NYSE:RPM): RPM International manufactures and sells specialty chemical products to industrial and consumer markets in the United States and internationally. RPM International has a market cap of $3.55 billion and is currently trading around $26.92 with a 52-week range of $17.34 to $28.19. The stock has gained 9.65% year to date. According to SEC filing on August 10, 2012, Sullivan Thomas C (Director) sold a total of 19,000 shares at a total value of $511,028.

8. Alaska Air Group, Inc (NYSE:ALK): Alaska Air Group provides scheduled air transportation for passengers and cargo. Alaska Air Group has a market cap of $2.41 billion and is currently trading around $34.18 with a 52-week range of $25.55 to $72.34. The stock has fallen 8.95% year to date. According to SEC filing on August 10, 2012, Johnson Glenn S (President, Horizon Air) sold a total of 14,818 shares at a total value of $518,722, through Rule 10b5-1 trading plan.

9. AptarGroup, Inc (NYSE:ATR): AptarGroup engages in the design, development, manufacture, and sale of consumer product dispensing systems in North America, Europe, Asia, and South America. AptarGroup has a market cap of $3.32 billion and is currently trading around $49.89 with a 52-week range of $41.98 to $55.49. The stock has fallen 4.37% year to date. According to SEC filing on August 10, 2012, Pfeiffer Peter (Director) sold a total of 14,000 shares at a total value of $701,255.

10. Quanta Services Inc (NYSE:PWR): Quanta Services provides specialty contracting services primarily in North America. Quanta Services has a market cap of $5.18 billion and is currently trading around $24.78 with a 52-week range of $16.00 to $25.07. The stock has gained 15.04% year to date. According to SEC filing on August 10, 2012, Miller Darren B (VP - IT & Administration) sold a total of 10,868 shares at a total value of $266,383.

11. Reliance Steel & Aluminum (NYSE:RS): Reliance Steel & Aluminum operates as a metals service center company primarily in the United States and Canada. Reliance Steel & Aluminum has a market cap of $4.03 billion and is currently trading around $53.47 with a 52-week range of $31.09 to $58.58. The stock has gained 9.82% year to date.

According to SEC filing on August 10, 2012, Reliance Steel & Aluminum had four insiders combine sold a total of 10,723 shares at a total value of $570,029. Multiple insider selling are usually a negative sign.

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 Mid-Cap Insider Sells Filed On August 10