Seeking Alpha
Profile| Send Message|
( followers)  

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 27, 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. Urban Outfitters, Inc (NASDAQ:URBN): Urban Outfitters operates lifestyle specialty retail stores under the Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN brand names in the United States, Canada, and Europe. Urban Outfitters has a market cap of $5.35 billion and is currently trading around $36.92 with a 52-week range of $21.47 to $37.68. The stock has gained 33.96% year to date.

According to SEC filings on August 27, 2012, Belair Scott A (Director) sold a total of 516,000 shares at a total value of $19,017,240. On August 20, 2012, Urban Outfitters released their second quarter earning results with a revenue of $676 million and earnings per share of $0.42. On August 21, 2012, UBS and Canaccord Genuity raised Urban Outfitters' price target to $37.00 and $38.00 respectively. Over the past three months, there have been a total of one insider sell transaction. The key financial metrics for Urban Outfitters are given below:

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

2. Rent-A-Center Inc (NASDAQ:RCII): Rent-A-Center leases household durable goods to customers on a rent-to-own basis primarily in the United States, Canada, and Mexico. Rent-A-Center has a market cap of $2.12 billion and is currently trading around $35.92 with a 52-week range of $24.94 to $39.50. The stock has fallen 2.92% year to date.

According to SEC filings on August 27, 2012, Speese Mark E (Chairman of the Board & CEO) sold a total of 200,000 shares at a total value of $7,202,240. Over the past three months, there have been a total of two insider transactions and all of them are Sell transactions. The key financial metrics for Rent-A-Center are given below:

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

3. 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 $23.16 billion and is currently trading around $59.81 with a 52-week range of $40.76 to $65.60. The stock has gained 6.5% year to date.

According to SEC filings on August 27, 2012, 1992 Grat Remainder FBO William Lauder (Trust with Insider Trustee) sold a total of 93,423 shares (Class A Common Stock) at a total value of $5,606,786, through Rule 10b5-1 trading plan. Please refer the footnotes from Form 4 for more information on the ownership. On August 14, 2012, Estee Lauder Companies reported their fourth quarter earning results with a net sales of $9.71 billion, a 10% increase compared with $8.81 billion reported in the prior year.

Over the past three months, there have been a total of 12 insider transactions with 10 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.

Other notable insider selling transactions (minimum transaction value of $200,000) from large-cap and mid-cap companies filed at the SEC on August 27, 2012, are as follows:

4. Alexion Pharmaceuticals, Inc (NASDAQ:ALXN): Alexion Pharmaceuticals is a biopharmaceutical company, engages in the discovery, development, and commercialization of biologic therapeutic products in the United States, Europe, Latin America, Japan, and the Asia Pacific. Alexion Pharmaceuticals has a market cap of $20.65 billion and is currently trading around $106.94 with a 52-week range of $52.23 to $109.96. The stock has gained 49.57% year to date. According to SEC filings on August 27, 2012, Dubin Thomas I H (SVP & Chief Legal Officer) sold a total of 33,528 shares at a total value of $3,463,578, through Rule 10b5-1 trading plan.

5. Regeneron Pharmaceuticals Inc (NASDAQ:REGN): Regeneron Pharmaceuticals is a biopharmaceutical company, discovers, develops, and commercializes medicines for the treatment of serious medical conditions in the United States. Regeneron Pharmaceuticals has a market cap of $13.97 billion and is currently trading around $145.49 with a 52-week range of $49.58 to $146.25. The stock has gained 162.48% year to date. According to SEC filings on August 27, 2012, Roberts William (Vice President - Regulatory Development and Medical Safety) sold a total of 15,000 shares at a total value of $2,160,000, through Rule 10b5-1 trading plan.

6. General Dynamics Corporation (GD): General Dynamics is an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide. General Dynamics has a market cap of $23.15 billion and is currently trading around $65.62 with a 52-week range of $53.95 to $74.54. The stock has fallen 1.19% year to date. According to SEC filings on August 27, 2012, Oliver Walter M (Senior Vice President) sold a total of 33,725 shares at a total value of $2,199,959.

7. Nordson Corporation (NASDAQ:NDSN): Nordson Corporation engineers, manufactures, and markets products and systems for precision dispensing, testing and inspection, fluid management, surface treatment, and curing. Nordson has a market cap of $3.83 billion and is currently trading around $59.53 with a 52-week range of $36.61 to $62.44. The stock has gained 44.56% year to date. According to SEC filings on August 27, 2012, Keane John J (Senior Vice President) sold a total of 29,229 shares at a total value of $1,747,264.

8. Microsoft Corporation (NASDAQ:MSFT): Microsoft Corporation develops, licenses, and supports a range of software products and services; and designs and sells hardware worldwide. Microsoft has a market cap of $257.29 billion and is currently trading around $30.69 with a 52-week range of $24.26 to $32.95. The stock has gained 18.22% year to date. According to SEC filings on August 27, 2012, Delbene Kurt D (President, Office Division) sold a total of 39,847 shares at a total value of $1,203,782.

9. Chico's FAS, Inc (NYSE:CHS): Chico's FAS Inc operates as a specialty retailer of private branded, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing items in the United States. Chico's FAS has a market cap of $3.09 billion and is currently trading around $18.64 with a 52-week range of $9.57 to $18.77. The stock has gained 67.32% year to date. According to SEC filings on August 27, 2012, Dyer David (President and CEO) sold a total of 30,000 shares at a total value of $556,575, through Rule 10b5-1 trading plan.

10. Albemarle Corporation (NYSE:ALB): Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals. Albemarle Corporation has a market cap of $4.95 billion and is currently trading around $55.31 with a 52-week range of $38.02 to $68.51. The stock has gained 7.38% year to date. According to SEC filings on August 27, 2012, Gardner Ronald Roy (Vice President) sold a total of 9,384 shares at a total value of $529,258.

11. Buckeye Partners, L.P. (NYSE:BPL): Buckeye Partners LP owns and operates refined petroleum products pipeline systems in the United States. Buckeye Partners LP has a market cap of $4.68 billion and is currently trading around $47.75 with a 52-week range of $44.55 to $68.45. The stock has fallen 25.37% year to date. According to SEC filings on August 27, 2012, Malecky Robert A (SVP) sold a total of 10,000 shares (Limited Partnership Units) at a total value of $498,411.

12. Syntel, Inc (NASDAQ:SYNT): Syntel provides information technology (NYSE:IT) and knowledge process outsourcing (KPO) services worldwide. Syntel has a market cap of $2.53 billion and is currently trading around $60.37 with a 52-week range of $38.10 to $64.63. The stock has gained 28.86% year to date. According to SEC filing on August 27, 2012, Syntel had two insiders (Moore Daniel M, Chief Administrative Officer & Mashruwala Rajesh, Director) combine sold a total of 6,800 shares at a total value of $410,575. Multiple insider selling is usually a negative sign.

13. Amazon.com, Inc (NASDAQ:AMZN): Amazon operates as an online retailer in North America and internationally. It operates retail Websites, such as amazon.com and amazon.ca. Amazon has a market cap of $110.27 billion and is currently trading around $243.92 with a 52-week range of $166.97 to $247.50. The stock has gained 40.91% year to date. According to SEC filings on August 27, 2012, Alberg Tom A (Director) sold a total of 1,530 shares at a total value of $374,941, through a Rule 10b5-1 trading plan.

14. Broadcom Corporation (NASDAQ:BRCM): Broadcom Corporation designs and develops semiconductor solutions for wired and wireless communications. It provides a portfolio of system-on-a-chip (SoC) and software solutions. Broadcom has a market cap of $19.80 billion and is currently trading around $35.42 with a 52-week range of $27.59 to $39.66. The stock has gained 20.64% year to date. According to SEC filings on August 27, 2012, Switz Robert E (Director) sold a total of 10,000 shares (Class A common stock) at a total value of $351,680.

15. EMC Corporation (NYSE:EMC): EMC Corporation develops, delivers, and supports the information and virtual infrastructure technologies and solutions. EMC has a market cap of $55.43 billion and is currently trading around $26.41 with a 52-week range of $19.99 to $30.00. The stock has gained 22.61% year to date. According to SEC filings on August 27, 2012, Coviello Arthur W Jr (Executive Chairman, RSA) sold a total of 8,155 shares at a total value of $212,479.

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 27