Notable Large-Cap And Mid-Cap Insider Sells Filed On October 16

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Includes: AMT, FDO, MAC, MORN, MWE, PCLN, SYK, TMUS
by: StockPandit

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 and mid-cap companies (market cap greater than $2 billion) filed at the Securities and Exchange Commission on October 16, 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. MetroPCS Communications Inc (PCS): MetroPCS Communications is a wireless telecommunications carrier, together with its subsidiaries, provides wireless broadband mobile services in the United States. MetroPCS has a market cap of $4.00 billion and is currently trading around $11.02 with a 52-week range of $5.53 to $14.51. The stock has gained 26.96% year to date.

According to SEC filing on October 16, 2012, Ta Associates LP (members of a 13(d) group) sold a total of 295,800 shares at a total value of $3,389,203. Please refer the footnotes from Form 4 for more information on the ownership. On October 03, 2012, Deutsche Telekom (DTE) and MetroPCS announced that they have signed a definitive agreement to combine T-Mobile USA and MetroPCS. Over the past three months, there have been a total of 81 insider transactions with 80 Sell transactions. Key financial metrics for MetroPCS is given below:

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

2. Priceline.com Inc (NASDAQ:PCLN): Priceline.com Incorporated, together with its subsidiaries, operates as an online travel company. Priceline has a market cap of $29.79 billion and is currently trading around $597.77 with a 52-week range of $438.76 to $774.96. The stock has gained 27.81% year to date.

According to SEC filing on October 16, 2012, Boyd Jeffery H (President and CEO) sold a total of 2,000 shares at a total value of $1,185,868, 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 four insider transactions and all of them are Sell transactions. Key financial metrics for Priceline is given below:

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

3. Stryker Corporation (NYSE:SYK): Stryker Corporation, together with its subsidiaries, operates as a medical technology company. Stryker Corp has a market cap of $20.34 billion and is currently trading around $53.46 with a 52-week range of $45.44 to $57.15. The stock has gained 7.54% year to date.

According to SEC filing on October 16, 2012, Stryker Ronda E (Director) sold a total of 18,000 shares at a total value of $942,432, through Rule 10b5-1 trading plan. Over the past three months, there have been a total of 62 insider transactions and all of them are Sell transactions. Key financial metrics for Stryker Corp 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 and mid-cap companies filed at the SEC on October 16, 2012, are as follows:

4. Family Dollar Stores Inc (NYSE:FDO): Family Dollar Stores operates a chain of self-service retail discount stores primarily for low and middle income consumers in the United States. Family Dollar has a market cap of $8.01 billion and is currently trading around $68.52 with a 52-week range of $53.03 to $74.73. The stock has gained 18.83% year to date. According to SEC filing on October 16, 2012, Mahoney George R Jr (Director) sold a total of 10,000 shares at a total value of $663,639.

5. American Tower Corporation (NYSE:AMT): American Tower Corporation is a real estate investment trust, operates as a wireless and broadcast communications infrastructure company. American Tower Corp has a market cap of $29.54 billion and is currently trading around $74.76 with a 52-week range of $53.02 to $76.22. The stock has gained 24.58% year to date. According to SEC filing on October 16, 2012, Bartlett Thomas A (EVP, CFO &Treasurer) sold a total of 5,771 shares at a total value of $432,825, through Rule 10b5-1 trading plan.

6. Morningstar Inc (NASDAQ:MORN): Morningstar Inc, together with its subsidiaries, provides independent investment research to investors worldwide. Morningstar has a market cap of $3.12 billion and is currently trading around $64.43 with a 52-week range of $54.71 to $64.47. The stock has gained 8.38% year to date. According to SEC filing on October 16, 2012, Phillips Donald James II (President, Research) sold a total of 5,000 shares at a total value of $319,768, through Rule 10b5-1 trading plan.

7. Markwest Energy Partners LP (NYSE:MWE): Markwest Energy Partners engages in the gathering, processing, and transportation of natural gas in the southwest, Gulf Coast, and northeast regions of the United States. Markwest Energy Partners has a market cap of $6.55 billion and is currently trading around $55.72 with a 52-week range of $45.36 to $61.60. The stock has gained 1.2% year to date. According to SEC filing on October 16, 2012, Mollenkopf John C (SVP, Chief Operating Officer) sold a total of 10,000 shares (Common Units) at a total value of $549,512, through Rule 10b5-1 trading plan.

8. Macerich Company (NYSE:MAC): The Macerich Company is an independent real estate investment trust. The firm invests in the real estate markets of the United States. Macerich Co has a market cap of $7.94 billion and is currently trading around $59.67 with a 52-week range of $42.57 to $62.83. The stock has gained 17.92% year to date. According to SEC filing on October 16, 2012, O Hern Thomas E (Senior EVP, Treasurer & CFO) sold a total of 4,000 shares at a total value of $235,960, through Rule 10b5-1 trading plan. 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 long position in PCLN, FDO over the next 72 hours. 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.

Additional disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.