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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 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 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. Delek US Holdings, Inc. (DK): Delek US Holdings is an integrated energy company, engaged in refining, marketing, supplying, and retailing petroleum products. Delek US Holdings has a market cap of $1.42 billion and is currently trading around $24.27, with a 52-week range of $9.41 to $26.40. The stock has gained 112.71% year to date.

According to SEC filings on August 16, 2012, Yemin Ezra Uzi (president/CEO) sold a total of 500,000 shares at a total value of $12,137,129. Over the past three months, there have been a total of 36 insider transactions, with 32 sell transactions. The key financial metrics for Delek US Holdings are given below:

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

2. Spectrum Pharmaceuticals, Inc. (SPPI): Spectrum Pharmaceuticals is a biotechnology company, engages in acquiring, developing, and commercializing prescription drug products, primarily in the areas of hematology and oncology. Spectrum Pharmaceuticals has a market cap of $754.71 million and is currently trading around $12.68, with a 52-week range of $6.94 to $17.48. The stock has fallen 13.33% year to date.

According to SEC filings on August 16, 2012, Shrotriya Rajesh C., MD, (chairman, CEO and president) sold a total of 208,500 shares at a total value of $2,619,329, through Rule 10b5-1 trading plan. Over the past three months, there have been a total of 4 insider transactions and all of them have been Sell transactions. The key financial metrics for Spectrum Pharmaceuticals are given below:

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

3. MCG Capital Corporation (MCGC): MCG Capital Corporation is a private equity firm specializing in investments in middle market companies. MCG Capital has a market cap of $334.07 million and is currently trading around $4.52, with a 52-week range of $3.40 to $5.07. The stock has gained 12.72% year to date.

According to SEC filings on August 16, 2012, Saitowitz, Gavin (director) sold a total of 200,000 shares at a total value of $919,441. Please refer the footnote from Form 4 for more information on the ownership. Over the past three months, there have been a total of 13 insider transactions, with 9 Sell transactions. The key financial metrics for MCG Capital are given below:

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

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

4. Team, Inc. (TISI): Team Inc. provides specialty maintenance and construction services for maintaining high temperature and high pressure piping systems and vessels that are primarily utilized in heavy industries. Team Inc. has a market cap of $636.32 million and is currently trading around $31.88, with a 52-week range of $19.98 to $33.50. The stock has gained 7.16% year to date. According to SEC filings on August 16, 2012, Waters, Louis A., (director) sold a total of 50,000 shares at a total value of $1,536,685.

5. Owens & Minor, Inc. (OMI): Owens & Minor provides distribution, third-party logistics, and other supply-chain management services to healthcare providers and suppliers of medical and surgical products. Owens & Minor has a market cap of $1.80 billion and is currently trading around $28.36, with a 52-week range of $25.87 to $32.00. The stock has gained 2.05% year to date. According to SEC filings on August 16, 2012, Minor G. Gilmer III (director) sold a total of 32,500 shares at a total value of $912,488.

6. Molina Healthcare, Inc. (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 $1.19 billion and is currently trading around $25.54, with a 52-week range of $13.93 to $36.83. The stock has gained 14.38% year to date. According to SEC filings on August 16, 2012, Molina Healthcare had two insiders combined sell a total of 33,000 shares at a total value of $820,913. Out of these, 30,000 shares were sold through a Rule 10b5-1 trading plan.

7. Live Nation Entertainment, Inc. (LYV): Live Nation operates as a live entertainment company. It promotes live music events in its owned and/or operated venues, and in rented third-party venues. Live Nation has a market cap of $1.68 billion and is currently trading around $8.84, with a 52-week range of $7.14 to $11.00. The stock has gained 6.38% year to date. According to SEC filings on August 16, 2012, Azoff, Irving (executive chairman) sold a total of 78,200 shares at a total value of $683,077, through a Rule 10b5-1 trading plan.

8. Dorman Products Inc. (DORM): Dorman Products supplies automotive replacement parts, fasteners, and service line products primarily for the automotive aftermarket. Dorman Products has a market cap of $1.08 billion and is currently trading around $29.54, with a 52-week range of $13.28 to $30.49. The stock has gained 60.02% year to date. According to SEC filings on August 16, 2012, Barton, Mathias J., (co-president) sold a total of 22,501 shares at a total value of $658,154.

9. Preformed Line Products Company (PLPC): Preformed Line Products designs and manufactures products and systems used in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, and data communication industries worldwide. Preformed Line Products has a market cap of $301.36 million and is currently trading around $56.54 ,with a 52-week range of $40.92 to $70.82. The stock has fallen 5.23% year to date. According to SEC filings on August 16, 2012, Ruhlman, Robert G., (president - CFO) sold a total of 10,470 shares at a total value of $575,012.

10. Vocus, Inc. (VOCS): Vocus Inc. provides cloud marketing software that enables businesses to attract, engage, and retain customers in the United States, Europe, Asia, and Morocco. Vocus Inc. has a market cap of $384.61 million and is currently trading around $18.58, with a 52-week range of $11.95 to $24.60. The stock has fallen 16.57% year to date. According to SEC filings on August 16, 2012, Weissberg, Norman T., (SVP, North American Sales) sold a total of 26,735 shares at a total value of $489,788.

11. PHH Corporation (PHH): PHH Corporation provides business process management services for the mortgage and fleet industries in the United States and Canada. PHH Corp has a market cap of $1.04 billion and is currently trading around $18.31, with a 52-week range of $8.75 to $19.56. The stock has gained 71.12% year to date. According to SEC filings on August 16, 2012, Kilroy, George J., (EVP, Fleet) sold a total of 20,000 shares at a total value of $358,804.

12. Blackrock Kelso Capital Corp. (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 $719.31 million and is currently trading around $9.76 with a 52-week range of $6.30 to $10.34. The stock has gained 20.49% year to date. According to SEC filing on August 16, 2012, Virginia Retirement System (beneficial owner) sold a total of 31,796 shares at a total value of $305,960.

13. Southside Bancshares, Inc. (SBSI): Southside Bancshares operates as the holding company for Southside Bank that provides financial products and services to individuals, businesses, municipal entities, and non-profit organizations. Southside Bancshares has a market cap of $383.31 million and is currently trading around $22.08, with a 52-week range of $16.95 to $23.54. The stock has gained 7.03% year to date. According to SEC filings on August 16, 2012, Story, Jeryl W., (senior executive vice president) sold a total of 12,012 shares at a total value of $260,203.

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

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 16