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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 companies (market cap between $2 billion and $10 billion) filed at the Securities and Exchange Commission on September 04, 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 ten 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. Camden Property Trust (NYSE:CPT): Camden Property Trust is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It is engaged in the ownership, development, acquisition, management, and disposition of multifamily residential apartment communities. Camden Property Trust has a market cap of $5.83 billion and is currently trading around $69.79 with a 52-week range of $51.72 to $71.99. The stock has gained 12.13% year to date.

According to SEC filings on September 04, 2012, Camden Property Trust had two insiders combines sell a total of 139,854 shares (Common Shares of Beneficial Interest) at a total value of $9,723,839. Multiple insider selling are usually a negative sign. Over the past three months, there have been a total of 16 insider transactions and all of them are Sell transactions. The key financial metrics for Camden Property Trust are given below:

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

2. Align Technology, Inc (NASDAQ:ALGN): Align Technology Inc designs, manufactures, and markets the invisalign system for treating malocclusion or the misalignment of teeth. Invisalign corrects malocclusion using a series of clear, nearly invisible, removable appliances that gently move teeth to a desired final position. Align Technology Inc has a market cap of $2.86 billion and is currently trading around $35.18 with a 52-week range of $14.25 to $36.10. The stock has gained 48.28% year to date.

According to SEC filings on September 04, 2012, Lacob Joseph (Director) sold a total of 145,905 shares at a total value of $4,949,948. Over the past three months, there have been a total of 22 insider transactions with 20 Sell transactions. The key financial metrics for Align Technology Inc are given below:

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

3. Hertz Global Holdings, Inc (NYSE:HTZ): Hertz Global Holdings engages in the car and equipment rental businesses worldwide. Hertz Global Holdings has a market cap of $6.01 billion and is currently trading around $14.29 with a 52-week range of $7.80 to $16.64. The stock has gained 21.93% year to date.

According to SEC filings on September 04, 2012, Taride Michel (Executive Vice President and President, Hertz International) sold a total of 111,865 shares at a total value of $1,604,444. Over the past three months, there have been a total of 3 insider transactions and all of them are Sell transactions. The key financial metrics for Hertz Global Holdings 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 $500,000) from mid-cap companies filed at the SEC on September 04, 2012 are as follows:

4. Avon Products, Inc (NYSE:AVP): Avon Products Inc manufactures and markets beauty and related products worldwide. Avon has a market cap of $6.56 billion and is currently trading around $15.19 with a 52-week range of $14.45 to $23.94. The stock has fallen 13.05% year to date. According to SEC filings on September 04, 2012, Herington Charles M (Executive Vice President) sold a total of 71,153 shares at a total value of $1,100,025.

5. 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 $8.43 billion and is currently trading around $62.16 with a 52-week range of $30.34 to $62.43. The stock has gained 44.52% year to date. According to SEC filings on September 04, 2012, Rackspace had two insiders combined sell a total of 15,000 shares at a total value of $897,745. Please refer the footnotes from Form 4 for more information on the ownership.

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

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in HTZ over the next 72 hours. I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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 Mid-Cap Insider Sells Filed On September 4