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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 and large-cap companies (market cap greater than $2 billion) filed at the Securities and Exchange Commission on August 23, 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 10 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. Estee Lauder Companies Inc (NYSE:EL): The Estee Lauder Companies engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. Estee Lauder Companies has a market cap of $23.14 billion and is currently trading around $59.53 with a 52-week range of $40.76 to $65.60. The stock has gained 6% year to date.

According to SEC filings on August 23, 2012, 1992 Grat Remainder Trust Fbo William Lauder (Trust with Insider Trustee) sold a total of 115,385 shares at a total value of $6,965,408, through Rule 10b5-1 trading plan. Please refer the footnotes from Form 4 for more information on the ownership. Over the past three months, there have been a total of 7 insider transactions with 6 Sell transactions. The key financial metrics for Estee Lauder Companies are given below:

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

2. Federal Realty Investment Trust (NYSE:FRT): Federal Realty Investment Trust operates as a real estate investment trust, which engages in the ownership, management, development, and redevelopment of retail and mixed-use properties. Federal Realty Investment Trust has a market cap of $6.89 billion and is currently trading around $107.43 with a 52-week range of $77.67 to $109.99. The stock has gained 18.38% year to date.

According to SEC filings on August 23, 2012, Wood Donald C (Trustee, President and CEO) sold a total of 29,328 shares at a total value of $3,141,998. Over the past three months, there have been a total of 3 insider transactions and all of them have been Sell transactions. The key financial metrics for Federal Realty Investment Trust are given below:

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

3. Douglas Emmett, Inc (NYSE:DEI): Douglas Emmett is a real estate investment trust, owns and operates office and multifamily properties in California and Hawaii. Douglas Emmett has a market cap of $3.33 billion and is currently trading around $23.84 with a 52-week range of $15.10 to $24.49. The stock has gained 30.7% year to date.

According to SEC filings on August 23, 2012, Anderson Christopher H (Director) sold a total of 100,000 shares at a total value of $2,347,000. Over the past three months, there have been a total of 13 insider transactions with 9 Sell transactions. The key financial metrics for Douglas Emmett 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 $200,000) from large-cap and mid-cap companies filed at the SEC on August 23, 2012, are as follows:

4. Dillard's, Inc (NYSE:DDS): Dillard's, Inc operates as fashion apparel, cosmetics, and home furnishing retailer in the United States. Dillard's Inc has a market cap of $3.60 billion and is currently trading around $73.79 with a 52-week range of $40.01 to $76.33. The stock has gained 64.42% year to date. According to SEC filings on August 23, 2012, Dillard's Inc had two insiders combined sell a total of 23,986 shares at a total value of $1,437,291. Multiple insider selling is usually a negative sign.

5. Equity Residential (NYSE:EQR): Equity Residential is a real estate investment trust, engaged in the acquisition, development, and management of multifamily properties in the United States. Equity Residential has a market cap of $18.81 billion and is currently trading around $61.27 with a 52-week range of $48.46 to $65.72. The stock has gained 7.43% year to date. According to SEC filings on August 23, 2012, Tuomi Frederick C (Executive Vice President) sold a total of 16,083 shares at a total value of $962,196. Please refer to the footnotes from Form 4 for more information on the ownership.

6. Owens Corning (NYSE:OC): Owens Corning engages in the provision of composite and building materials systems worldwide. Owens Corning has a market cap of $3.79 billion and is currently trading around $32 with a 52-week range of $18.67 to $38.00. The stock has gained 11.42% year to date. According to SEC filings on August 23, 2012, Dana Charles E (Group Pres Building Materials) sold a total of 30,000 shares at a total value of $954,900.

7. 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 $7.76 billion and is currently trading around $57.21 with a 52-week range of $30.34 to $60.55. The stock has gained 33.02% year to date. According to SEC filings on August 23, 2012, Still George J Jr (Director) sold a total of 10,000 shares at a total value of $569,500.

8. C.R. Bard, Inc (NYSE:BCR): C. R. Bard and its subsidiaries design, manufacture, package, distribute, and sell medical, surgical, diagnostic, and patient care devices worldwide. C.R. Bard has a market cap of $8.16 billion and is currently trading around $97.3 with a 52-week range of $80.80 to $108.31. The stock has gained 13.8% year to date. According to SEC filings on August 23, 2012, Kelly Brian P (Group Vice President) sold a total of 5,032 shares at a total value of $494,691.

9. SEI Investments Company (NASDAQ:SEIC): SEI Investments Company is a publicly owned investment manager. The firm provides wealth management and investment advisory services to its clients through its subsidiaries. SEI Investments Company has a market cap of $3.83 billion and is currently trading around $22.06 with a 52-week range of $13.73 to $22.44. The stock has gained 27.15% year to date. According to SEC filings on August 23, 2012, Lieb Richard (Director) sold a total of 20,000 shares at a total value of $444,600.

10. DTE Energy Company (NYSE:DTE): DTE Energy Company, together with its subsidiaries, operates as an electric and natural gas utility company in Michigan. DTE Energy Company has a market cap of $10.05 billion and is currently trading around $58.53 with a 52-week range of $47.03 to $62.56. The stock has gained 7.49% year to date. According to SEC filings on August 23, 2012, Hillegonds Paul Christie (Senior VP/Corp Affairs & Comm.) sold a total of 7,000 shares at a total value of $419,172.

11. American Financial Group (NYSE:AFG): American Financial Group provides property and casualty insurance, and annuity and supplemental insurance products in the United States. American Financial Group has a market cap of $3.51 billion and is currently trading around $37.37 with a 52-week range of $29.66 to $40.54. The stock has gained 1.3% year to date. According to SEC filings on August 23, 2012, Lindner S Craig (Co-CEO & Co-President) sold a total of 9,200 shares at a total value of $348,432. Please refer to the footnotes from Form 4 for more information on the ownership.

12. Enterprise Products Partners LP (NYSE:EPD): Enterprise Products Partners provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, refined products, and petrochemicals in the United States and internationally. Enterprise Products Partners has a market cap of $46.94 billion and is currently trading around $52.82 with a 52-week range of $38.01 to $54.98. The stock has gained 13.89% year to date. According to SEC filings on August 23, 2012, Hurlburt Terrance L (Group Senior Vice President) sold a total of 6,000 shares at a total value of $320,509.

13. Reliance Steel & Aluminum (NYSE:RS): Reliance Steel & Aluminum Co operates as a metals service center company primarily in the United States and Canada. Reliance Steel & Aluminum has a market cap of $3.96 billion and is currently trading around $52.64 with a 52-week range of $31.09 to $58.58. The stock has fallen 1.55% year to date. According to SEC filings on August 23, 2012, Gimbel Thomas W (Director) sold a total of 5,000 shares at a total value of $270,650.

14. The Allstate Corporation (NYSE:ALL): The Allstate Corporation engages in the personal property and casualty insurance, life insurance, and retirement and investment products business primarily in the United States. Allstate has a market cap of $18.79 billion and is currently trading around $37.71 with a 52-week range of $22.27 to $38.50. The stock has gained 37.58% year to date. According to SEC filings on August 23, 2012, Smith Joshua I (Director) sold a total of 5,235 shares at a total value of $200,762.

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 Large-Cap And Mid-Cap Insider Sells Filed On August 23