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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 (market cap greater than $250 million) filed at the Securities and Exchange Commission on August 29, 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. Reynolds American, Inc (NYSE:RAI): Reynolds American manufactures and sells cigarette and other tobacco products in the United States. Reynolds American has a market cap of $26.10 billion and is currently trading around $46.15 with a 52-week range of $35.97 to $46.93. The stock has gained 11.42% year to date.

According to SEC filings on August 29, 2012, Brown & Williamson Holdings Inc (Beneficial Owner) sold a total of 467,416 shares at a total value of $21,356,237. Please refer the footnotes from Form 4 for more information on the ownership. Over the past three months, there have been a total of six insider transactions and all of them are Sell transactions. The key financial metrics for Reynolds American are given below:

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

2. salesforce.com Inc (NYSE:CRM): Salesforce.com, inc provides cloud computing and social enterprise solutions to various businesses and industries worldwide. Salesforce.com has a market cap of $20.09 billion and is currently trading around $145.6 with a 52-week range of $94.09 to $164.75. The stock has gained 43.5% year to date.

According to SEC filings on August 29, 2012, Ramsey Craig (Director) sold a total of 36,000 shares at a total value of $5,235,199. Over the past three months, there have been a total of 29 insider transactions and all of them are Sell transactions. The key financial metrics for Salesforce.com are given below:

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

3. Bank Of The Ozarks Inc (NASDAQ:OZRK): Bank of the Ozarks Inc operates as a bank holding company for Bank of the Ozarks that provides various retail and commercial banking services. Bank Of The Ozarks has a market cap of $1.13 billion and is currently trading around $32.69 with a 52-week range of $19.14 to $34.52. The stock has gained 10.33% year to date.

According to SEC filings on August 29, 2012, Bank Of The Ozarks had two insiders combined sell a total of 109,800 shares at a total value of $3,571,340. Over the past three months, there have been a total of 23 insider transactions and all of them are Sell transactions. The key financial metrics for Bank Of The Ozarks 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) filed at the SEC on August 29, 2012, are as follows:

4. Drew Industries, Inc (NYSE:DW): Drew Industries manufactures and markets various components for recreational vehicles and manufactured homes in the United States. Drew Industries has a market cap of $648.55 million and is currently trading around $29.07 with a 52-week range of $17.82 to $30.55. The stock has gained 18.51% year to date. According to SEC filings on August 29, 2012, Rose Edward W. III (Director) sold a total of 66,639 shares at a total value of $1,939,774.

5. The J.M. Smucker Company (NYSE:SJM): The J. M. Smucker Company engages in manufacturing and marketing branded food products primarily in the United States, Canada, and internationally. J.M. Smucker has a market cap of $9.39 billion and is currently trading around $85.03 with a 52-week range of $69.19 to $85.51. The stock has gained 8.78% year to date. According to SEC filings on August 29, 2012, J.M. Smucker had four insiders combine sold a total of 22,574 shares at a total value of $1,915,691. Out of these, 3,327 shares were sold through Rule 10b5-1 trading plan. Please refer the footnotes from Form 4 for more information on the ownership.

6. Stryker Corporation (NYSE:SYK): Stryker Corporation, together with its subsidiaries, operates as a medical technology company. Stryker Corporation has a market cap of $20.38 billion and is currently trading around $53.58 with a 52-week range of $44.55 to $57.15. The stock has gained 7.79% year to date. According to SEC filings on August 29, 2012, Stryker Ronda E (Director) sold a total of 27,000 shares at a total value of $1,451,772, through a Rule 10b5-1 trading plan.

7. The Middleby Corporation (NASDAQ:MIDD): The Middleby Corporation engages in the design, manufacture, marketing, distribution, and service of commercial foodservice and food processing equipment in the United States, Canada, Asia, Europe, the Middle East, and Latin America. The Middleby Corporation has a market cap of $2.12 billion and is currently trading around $113.28 with a 52-week range of $65.39 to $119.74. The stock has gained 20.46% year to date. According to SEC filings on August 29, 2012, Miller John R III (Director) sold a total of 10,000 shares at a total value of $1,130,702.

8. Exxon Mobil Corporation (NYSE:XOM): Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. Exxon Mobil has a market cap of $405.74 billion and is currently trading around $87.9 with a 52-week range of $67.93 to $88.91. The stock has gained 3.7% year to date. According to SEC filings on August 29, 2012, Kelly Alan J (Vice President) sold a total of 8,090 shares at a total value of $710,310.

9. The Boston Beer Company Inc (NYSE:SAM): The Boston Beer Company, Inc. engages in the production and sale of alcohol beverages primarily in the United States, Canada, Europe, Israel, the Caribbean, the Pacific Rim, and Mexico. Boston Beer Company has a market cap of $1.34 billion and is currently trading around $103.35 with a 52-week range of $71.00 to $128.07. The stock has fallen 4.8% year to date. According to SEC filings on August 29, 2012, Koch C James (Chairman) sold a total of 6,000 shares (Class A Common Stock) at a total value of $604,737.

10. LeapFrog Enterprises, Inc (NYSE:LF): LeapFrog Enterprises designs, develops, and markets technology-based learning products and related proprietary content for children worldwide. LeapFrog Enterprises has a market cap of $765.18 million and is currently trading around $11.39 with a 52-week range of $2.85 to $12.28. The stock has gained 103.76% year to date. According to SEC filings on August 29, 2012, Kalinske Thomas J (Director) sold a total of 50,000 shares (Class A Common Stock) at a total value of $580,000.

11. UDR, Inc (NYSE:UDR): UDR Inc is an independent real estate investment trust. The firm invests in the real estate markets of the United States. UDR has a market cap of $6.36 billion and is currently trading around $25.4 with a 52-week range of $20.04 to $27.75. The stock has gained 1.2% year to date. According to SEC filings on August 29, 2012, Toomey Thomas W (Chief Executive Officer) sold a total of 20,000 shares at a total value of $513,400.

12. Hertz Global Holdings, Inc (NYSE:HTZ): Hertz Global Holdings engages in the car and equipment rental businesses worldwide. Hertz has a market cap of $6.09 billion and is currently trading around $14.48 with a 52-week range of $7.80 to $16.64. The stock has gained 23.55% year to date. According to SEC filings on August 29, 2012, Stuart Robert J (Senior V.P., Global Sales) sold a total of 30,000 shares at a total value of $436,801.

13. BorgWarner Inc (NYSE:BWA): BorgWarner Inc manufactures and sells engineered automotive systems and components primarily for powertrain applications worldwide. BorgWarner has a market cap of $7.91 billion and is currently trading around $69.12 with a 52-week range of $54.59 to $87.45. The stock has gained 8.44% year to date. According to SEC filings on August 29, 2012, Michas Alexis P (Director) sold a total of 6,192 shares at a total value of $424,483.

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 Insider Sells Filed On August 29