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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 insights into the growth of the company and its proceedings. While there are many reasons for insiders to sell their shares, there is only one reason to buy. That said, investors generally look for insider selling patterns to get better insights into a company.

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 13, 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. Encore Capital Group, Inc (NASDAQ:ECPG): Encore Capital Group provides debt management and recovery solutions for consumers and property owners across a range of assets. Encore Capital Group has a market cap of $707.09 million and is currently trading around $28.5 with a 52-week range of $18.96 to $30.47. The stock has gained 34.31% year to date.

According to SEC filings on August 13, 2012, Mesdag Willem (Director) sold a total of 1,213,799 shares for a total value of $33,901,406. Over the past three months, there have been a total of 9 insider transactions with 3 Sell transactions. The key financial metrics for Encore Capital Group are given below:

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

2. Stillwater Mining Company (NYSE:SWC): Stillwater Mining Company engages in developing, extracting, processing, smelting, refining, and marketing palladium, platinum, and platinum group metals (PGMs). Stillwater Mining has a market cap of $1.06 billion and is currently trading around $9.21 with a 52-week range of $7.31 to $15.95. The stock has fallen 11.95% year to date.

According to SEC filings on August 13, 2012, Stillwater Mining had five insiders combined sell a total of 206,203 shares for a total value of $1,906,453. Multiple insider selling are usually a negative sign. Over the past three months, there have been a total of 7 insider transactions with 5 Sell transactions. The key financial metrics for Stillwater Mining are given below:

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

3. Rex Energy Corporation (NASDAQ:REXX): Rex Energy operates as an independent oil and gas company in the Appalachian Basin and the Illinois Basin. Rex Energy has a market cap of $660.68 million and is currently trading around $12.52 with a 52-week range of $8.80 to $18.00. The stock has fallen 15.18% year to date.

According to SEC filings on August 13, 2012, Shaner Lance T (Director) sold a total of 166,844 shares at a total value of $2,229,299, through Rule 10b5-1 trading plan. Over the past three months, there have been a total of 14 insider transactions with 13 Sell transactions. The key financial metrics for Rex Energy 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 7,000 shares) from small-caps filed at the SEC on August 13, 2012, are as follows:

4. Cott Corporation (NYSE:COT): Cott Corporation engages in the production, packaging, and distribution of private-label beverages in North America and internationally. Cott Corporation has a market cap of $801.58 million and is currently trading around $8.42 with a 52-week range of $5.94 to $8.77. The stock has gained 34.5% year to date. According to SEC filings on August 13, 2012, Rosenfeld Eric (Director) sold a total of 122,118 shares at a total value of $1,031,093.

5. Interface, Inc (IFSIA): Interface, Inc engages in the design, production, and sale of floor covering products for the commercial, institutional, and residential markets primarily in the Americas, Europe, and the Asia-Pacific. Interface, Inc has a market cap of $884.00 million and is currently trading around $13.4 with a 52-week range of $9.75 to $15.84. The stock has gained 16.07% year to date. According to SEC filings on August 13, 2012, Coombs Robert (Senior Vice President) sold a total of 50,000 shares at a total value of $685,000.

6. Kimball International, Inc (NASDAQ:KBALB): Kimball International manufactures and sells electronic assemblies and furniture in the United States, Poland, the United Kingdom, and internationally. Kimball International has a market cap of $420.69 million and is currently trading around $11.1 with a 52-week range of $4.61 to $11.34. The stock has gained 118.93% year to date. According to SEC filings on August 13, 2012, Habig Douglas A (Chairman) sold a total of 50,000 shares at a total value of $556,375.

7. Blackrock Kelso Capital Corp (NASDAQ:BKCC): BlackRock Kelso Capital Corporation is a private equity firm specializing in investments in middle market companies. Blackrock Kelso Capital has a market cap of $709.73 million and is currently trading around $9.63 with a 52-week range of $6.30 to $10.34. The stock has gained 18.89% year to date. According to SEC filings on August 13, 2012, Virginia Retirement System (Beneficial Owner) sold a total of 57,246 shares at a total value of $551,290.

8. ValueClick Inc (VCLK): ValueClick provides various products and services that enable marketers to advertise and sell their products through online marketing channels primarily in the United States and the United Kingdom. ValueClick has a market cap of $1.18 billion and is currently trading around $15.68 with a 52-week range of $13.35 to $21.86. The stock has fallen 3.74% year to date. According to SEC filings on August 13, 2012, Barlow Scott P (Secretary) sold a total of 34,078 shares at a total value of $541,010.

9. Innophos Holdings, Inc (NASDAQ:IPHS): Innophos Holdings engages in the production of mineral-based specialty ingredients that are used in food, beverage, pharmaceutical, oral care, and industrial end markets. Innophos Holdings has a market cap of $1.03 billion and is currently trading around $47.47 with a 52-week range of $36.18 to $58.50. The stock has fallen 2.24% year to date. According to SEC filings on August 13, 2012, Farran William (VP & General Counsel) sold a total of 10,000 shares at a total value of $479,600, through Rule 10b5-1 trading plan.

10. Molina Healthcare, Inc (NYSE:MOH): Molina Healthcare provides Medicaid-related solutions to meet the health care needs of low-income families and individuals, as well as to assist state agencies in their administration of the Medicaid program. Molina Healthcare has a market cap of $1.16 billion and is currently trading around $24.85 with a 52-week range of $13.93 to $36.83. The stock has gained 11.29% year to date. According to SEC filings on August 13, 2012, Bayer Terry (Chief Operating Officer) sold a total of 9,071 shares at a total value of $227,516.

11. UIL Holdings Corporation (NYSE:UIL): UIL Holdings operates in the regulated utility businesses. It is involved in the purchase, transmission, distribution, and sale of electricity for residential, commercial, and industrial purposes in the southwestern part of the State of Connecticut. UIL Holdings has a market cap of $1.85 billion and is currently trading around $36.56 with a 52-week range of $30.56 to $37.66. The stock has gained 3.36% year to date. According to SEC filings on August 13, 2012, Vallillo Anthony J (UI President & COO) sold a total of 7,000 shares at a total value of $255,500.

12. Clearwire Corporation (CLWR): Clearwire Corporation provides fourth generation wireless broadband services in the United States. Clearwire has a market cap of $1.73 billion and is currently trading around $1.75 with a 52-week range of $0.83 to $3.50. The stock has fallen 9.79% year to date. According to SEC filings on August 13, 2012, Prusch Erik (President and CEO) sold a total of 63,257 shares at a total value of $110,067.

13. Momenta Pharmaceuticals, Inc (NASDAQ:MNTA): Momenta Pharmaceuticals is a biotechnology company, specializes in the structural characterization, process engineering, and biologic systems analysis of complex molecules. Momenta Pharmaceuticals has a market cap of $700.78 million and is currently trading around $13.56 with a 52-week range of $10.15 to $19.64. The stock has fallen 22.02% year to date. According to SEC filings on August 13, 2012, Bishop John E (Senior Vice President-Pharmaceutical Sciences) sold a total of 7,485 shares at a total value of $101,646.

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 13