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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 from mid-cap companies (market cap between $2 billion and $10 billion) filed at the Securities and Exchange Commission on August 16, 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. Garmin Ltd (NASDAQ:GRMN): Garmin designs, develops, manufactures, and markets global positioning system ((NYSE:GPS)) enabled products and other navigation, communication, and information products for the automotive/mobile, outdoor, fitness, marine, and general aviation markets worldwide. Garmin has a market cap of $8.56 billion and is currently trading around $41.15 with a 52-week range of $30.30 to $50.67. The stock has gained 3.37% year to date.

According to SEC filings on August 16, 2012, Eller Donald (Director) sold a total of 87,998 shares at a total value of $3,610,800. Over the past three months, there have been a total of 13 insider transactions with 9 Sell transactions. The key financial metrics for Garmin are given below:

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

2. NetSuite Inc (NYSE:N): NetSuite provides cloud-based financials/enterprise resource planning (ERP) software suites in the United States and internationally. NetSuite has a market cap of $4.01 billion and is currently trading around $56.51 with a 52-week range of $25.32 to $59.22. The stock has gained 39.36% year to date.

According to SEC filings on August 16, 2012, Farrington Deborah A (Director) sold a total of 53,500 shares at a total value of $3,015,453. Over the past three months, there have been a total of 52 insider transactions with 47 Sell transactions. The key financial metrics for NetSuite are given below:

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

3. 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 $3.37 billion and is currently trading around $50.66 with a 52-week range of $41.98 to $55.49. The stock has fallen 2.89% year to date.

According to SEC filings on August 16, 2012, Pfeiffer Peter (Director) sold a total of 55,800 shares at a total value of $2,793,496. Over the past three months, there have been a total of 12 insider transactions with 9 Sell transactions. The key financial metrics for AptarGroup are given below:

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

Other notable insider selling transactions (minimum transaction value of $250,000) from mid-cap companies filed at the SEC on August 16, 2012 are as follows:

4. FMC Corporation (NYSE:FMC): FMC Corporation is a diversified chemical company, provides solutions and products for agricultural, consumer, and industrial markets. FMC Corporation has a market cap of $7.63 billion and is currently trading around $55.58 with a 52-week range of $31.91 to $104.01. The stock has gained 29.2% year to date. According to SEC filings on August 16, 2012, Steele Milton (President of Agricultural Chemicals Group) sold a total of 44,909 shares at a total value of $2,414,761.

5. DaVita Inc (NYSE:DVA): DaVita provides kidney dialysis services for patients suffering from chronic kidney failure, or end stage renal disease (ESRD) in the United States. DaVita has a market cap of $9.30 billion and is currently trading around $98.29 with a 52-week range of $59.14 to $100.52. The stock has gained 29.65% year to date. According to SEC filings on August 16, 2012, Rodriguez Javier (President of DaVita) sold a total of 19,162 shares at a total value of $1,872,725.

6. KLA-Tencor Corporation (NASDAQ:KLAC): KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries. KLA-Tencor Corporation has a market cap of $8.88 billion and is currently trading around $53.31 with a 52-week range of $33.20 to $55.43. The stock has gained 10.49% year to date. According to SEC filings on August 16, 2012, Wallace Richard P (President and CEO) sold a total of 20,000 shares at a total value of $1,052,476, through Rule 10b5-1 trading plan.

7. Westinghouse Air Brake Technologies Corp (NYSE:WAB): Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, provides technology-based products and services for the freight rail and passenger transit industries worldwide. Wabtec has a market cap of $3.88 billion and is currently trading around $80.98 with a 52-week range of $49.38 to $82.90. The stock has gained 15.77% year to date. According to SEC filings on August 16, 2012, Wesley Timothy R (VP - Investor Relations) sold a total of 10,000 shares at a total value of $794,265.

8. Alexandria Real Estate Equities Inc (NYSE:ARE): Alexandria Real Estate Equities is a real estate investment trust (REIT), engages in the ownership, operation, management, development, acquisition, and redevelopment of properties for the life sciences industry. Alexandria Real Estate has a market cap of $4.61 billion and is currently trading around $74.24 with a 52-week range of $56.10 to $76.50. The stock has gained 7.64% year to date. According to SEC filings on August 16, 2012, Marcus Joel S (Chief Executive Officer) sold a total of 6,000 shares at a total value of $444,000.

9. National Retail Properties, Inc (NYSE:NNN): National Retail Properties is a publicly owned equity real estate investment trust. The firm acquires, owns, manages, and develops retail properties in the United States. National Retail Properties has a market cap of $3.29 billion and is currently trading around $30.41 with a 52-week range of $23.90 to $30.42. The stock has gained 15.28% year to date. According to SEC filings on August 16, 2012, Whitehurst Julian E (President and COO) sold atotal of 12,000 shares at a total value of $364,450.

10. Linear Technology Corporation (NASDAQ:LLTC): Linear Technology Corporation designs, manufactures, and markets various analog integrated circuits worldwide. Linear Technology has a market cap of $7.67 billion and is currently trading around $33.3 with a 52-week range of $26.16 to $34.50. The stock has gained 10.89% year to date. According to SEC filings on August 16, 2012, Chantalat V Paul (VP QUALITY & RELIABILITY) sold a total of 10,000 shares at a total value of $331,450.

11. American Campus Communities, Inc (NYSE:ACC): American Campus Communities is an independent equity real estate investment trust. The firm invests in the real estate markets of the United States. American Campus Communities has a market cap of $3.05 billion and is currently trading around $45.67 with a 52-week range of $34.52 to $48.10. The stock has gained 8.84% year to date. According to SEC filings on August 16, 2012, Winger Brian N (Senior VP - Transactions) sold a total of 6,500 shares at a total value of $297,219.

12. United Therapeutics Corporation (NASDAQ:UTHR): United Therapeutics is a biotechnology company, engages in the development and commercialization of therapeutic products for patients with chronic and life-threatening diseases in the United States and internationally. United Therapeutics has a market cap of $2.91 billion and is currently trading around $56.29 with a 52-week range of $36.55 to $57.03. The stock has gained 19.13% year to date. According to SEC filings on August 16, 2012, Giltner Richard (Director) sold a total of 5,000 shares at a total value of $283,516.

13. Protective Life Corporation (NYSE:PL): Protective Life Corporation, through its subsidiaries, provides various financial services primarily in the United States. Protective Life has a market cap of $2.42 billion and is currently trading around $28.45 with a 52-week range of $13.71 to $30.75. The stock has gained 26.11% year to date. According to SEC filings on August 16, 2012, King Carolyn (Senior Vice President) sold a total of 9,000 shares at a total value of $256,757.

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 16