Seeking Alpha
Recommended for you:
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 large-cap companies (market cap greater than $10 billion) filed at the Securities and Exchange Commission on August 30, 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 $23.16 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 filing on August 30, 2012, Lauder Ronald S (Chairman, Clinique Labs, LLC) sold a total of 746,082 shares (Class A Common Stock) at a total value of $44,871,389. Please refer the footnotes from Form 4 for more information on the ownership. Over the past three months, there have been a total of 18 insider transactions with 16 Sell transactions. Key financial metrics for Estee Lauder Companies is given below:

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

2. Campbell Soup Company (NYSE:CPB): Campbell Soup Company, together with its subsidiaries, engages in the manufacture and marketing of branded convenience food products worldwide. Campbell Soup Company has a market cap of $11.09 billion and is currently trading around $35.09 with a 52-week range of $29.93 to $35.60. The stock has gained 5.57% year to date.

According to SEC filing on August 30, 2012, Weber Charlotte C (Director) sold a total of 168,166 shares at a total value of $5,904,265. Please refer the footnotes from Form 4 for more information on the ownership. Over the past three months, there have been a total of five insider transactions and all of them are Sell transactions. Key financial metrics for Campbell Soup Company is given below:

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

3. Mastercard Incorporated (NYSE:MA): MasterCard is a payments and technology company, together with its subsidiaries, provides transaction processing and other payment-related services in the United States and internationally. Mastercard has a market cap of $52.53 billion and is currently trading around $420.95 with a 52-week range of $293.01 to $466.98. The stock has gained 12.91% year to date.

According to SEC filing on August 30, 2012, Reeg Robert (President, MasterCard Technologies) sold a total of 4,935 shares (Class A Common Stock) at a total value of $2,092,389. On August 28, 2012, MasterCard announced a five-year partnership with the UK's largest communications company, Everything Everywhere to develop leading mobile and digital payment solutions for Everything Everywhere's 27 million UK customers. Over the past three months, there have been a total of 35 insider transactions with 24 Sell transactions. Key financial metrics for Mastercard is given below:

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

Other notable insider selling transactions (minimum transaction value of $200,000) from large-cap companies filed at the SEC on August 30, 2012, are as follows:

4. AvalonBay Communities, Inc (NYSE:AVB): AvalonBay Communities engages in the development, redevelopment, acquisition, ownership, and operation of multifamily communities in the United States. AvalonBay Communities has a market cap of $13.74 billion and is currently trading around $141.78 with a 52-week range of $107.54 to $151.23. The stock has gained 8.56% year to date. According to SEC filing on August 30, 2012, McLaughlin William M (Executive Vice President) sold a total of 6,999 shares at a total value of $979,895.

5. Priceline.com Inc (NASDAQ:PCLN): Priceline operates as an online travel company. Priceline has a market cap of $30.08 billion and is currently trading around $603.6 with a 52-week range of $411.26 to $774.96. The stock has gained 29.05% year to date. According to SEC filing on August 30, 2012, Barker Howard W Jr (Director) sold a total of 1,500 shares at a total value of $900,000, through Rule 10b5-1 trading plan.

6. Watson Pharmaceuticals, Inc (WPI): Watson Pharmaceuticals is a specialty pharmaceutical company, engages in the development, manufacture, marketing, sale, and distribution of generic and brand pharmaceutical products in the United States, western Europe, Canada, Australasia, Asia, South America, and South Africa. Watson Pharmaceuticals has a market cap of $10.41 billion and is currently trading around $81.52 with a 52-week range of $55.00 to $83.83. The stock has gained 35.1% year to date. According to SEC filing on August 30, 2012, Feldman Michel J (Director) sold a total of 5,500 shares at a total value of $448,190.

7. Broadcom Corporation (NASDAQ:BRCM): Broadcom Corporation designs and develops semiconductor solutions for wired and wireless communications. Broadcom has a market cap of $19.56 billion and is currently trading around $34.99 with a 52-week range of $27.59 to $39.66. The stock has gained 19.18% year to date. According to SEC filing on August 30, 2012, Marotta Daniel A (EVP & GM, Broadband Com Group) sold a total of 10,962 shares (Class A Common Stock) at a total value of $387,616.

8. Cameron International Corporation (NYSE:CAM): Cameron International Corporation provides flow equipment products, systems, and services worldwide. Cameron International Corp has a market cap of $13.11 billion and is currently trading around $53.23 with a 52-week range of $38.38 to $57.65. The stock has gained 8.21% year to date. According to SEC filing on August 30, 2012, Lemmer William C (Senior Vice President & General Counsel) sold a total of 6,528 shares at a total value of $359,040.

9. M&T Bank Corporation (NYSE:MTB): M&T Bank Corporation operates as the holding company for M&T Bank that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. M&T Bank Corp has a market cap of $11.02 billion and is currently trading around $87 with a 52-week range of $66.40 to $90.50. The stock has gained 13.96% year to date. According to SEC filing on August 30, 2012, Trolli Michele D (Executive Vice President and Chief Information Officer) sold a total of 2,724 shares at a total value of $241,320.

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

Source: Notable Large-Cap Insider Sells Filed On August 30

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.