Notable Large-Cap Insider Sells Filed On August 16

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 |  Includes: COST, PAA, SYK, WDC
by: StockPandit

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 insiders selling patterns to get better insights into a 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 16, 2012. I have also included the key financial metrics for the these 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. Costco Wholesale Corporation (NASDAQ:COST): Costco Wholesale Corporation operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories in no-frills, self-service warehouse facilities. Costco has a market cap of $41.71 billion and is currently trading around $96.48 with a 52-week range of $72.46 to $97.76. The stock has gained 15.79% year to date.

According to SEC filing on August 16, 2012, Sinegal James D (Director) sold a total of 16,000 shares at a total value of $1,534,651, through Rule 10b5-1 trading plan. Over the past three months, there have been a total of 8 insider transactions and all of them are Sell transactions. Key financial metrics for Costco is given below:

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

2. Plains All American Pipeline, LP (NYSE:PAA): Plains All American Pipeline engages in the transportation, storage, terminalling, and marketing of crude oil, refined products, and liquid petroleum gas (LPG) products in the United States and Canada. Plains All American Pipeline has a market cap of $14.28 billion and is currently trading around $87.12 with a 52-week range of $54.90 to $88.07. The stock has gained 18.61% year to date.

According to SEC filing on August 16, 2012, Swanson Al (Executive Vice President and CFO) sold a total of 12,000 shares at a total value of $1,038,744. On August 16, 2012, Plains All American Pipeline announced Two-for-One split of the Partnership's common units and this will be effected on October 1, 2012, by a distribution of one additional common unit for each common unit outstanding and held by unitholders of record at the close of business on September 17, 2012. As of August 15, 2012, PAA had 163,956,898 common units outstanding. Over the past three months, there have been a total of two insider transactions and all of them are Sell transactions. Key financial metrics for Plains All American Pipeline is given below:

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

3. Stryker Corporation (NYSE:SYK): Stryker Corporation, together with its subsidiaries, operates as a medical technology company. Stryker has a market cap of $20.73 billion and is currently trading around $54.5 with a 52-week range of $43.73 to $57.15. The stock has gained 9.64% year to date.

According to SEC filing on August 16, 2012, Stryker Ronda E (Director) sold a total of 18,000 shares at a total value of $973,565, through Rule 10b5-1 trading plan. Since May 02, 2012, Stryker Ronda sold a total of 684,000 shares at a total value of $36,047,292. Over the past three months, there have been a total of 66 insider transactions and all of them are Sell transactions. Key financial metrics for Stryker is given below:

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

4. SanDisk Corporation (SNDK): Sandisk Corporation designs, develops, and manufactures NAND flash memory storage solutions that are used in various consumer electronics products. SanDisk has a market cap of $10.31 billion and is currently trading around $42.7 with a 52-week range of $43.73 to $57.15. The stock has fallen 13.23% year to date.

According to SEC filing on August 16, 2012, Denuccio Kevin A (Director) sold a total of 6,262 shares at a total value of $266,270. Over the past three months, there have been a total of 16 insider transactions with 9 Sell transactions. Key financial metrics for SanDisk is given below:

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

Sources: Some of the data is sourced from Google Finance, Nasdaq, Finviz, Fidelity, and SEC.gov.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in SYK over the next 72 hours.

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.