Notable Large-Cap And Mid-Cap Insider Sells Filed On October 17

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 |  Includes: ARUN, CAB, LEN, LNG, NKE, RGLD, SYK, VRX
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 17, 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. Cheniere Energy Inc (NYSEMKT:LNG): Cheniere Energy Inc is an energy company, engages in liquefied natural gas related businesses. Cheniere Energy has a market cap of $3.39 billion and is currently trading around $15.82 with a 52-week range of $5.51 to $18.92. The stock has gained 82.05% year to date.

According to SEC filing on October 17, 2012, Cheniere Energy had two insiders combine sold a total of 55,000 shares at a total value of $854,396, through Rule 10b5-1 trading plan. Over the past three months, there have been a total of 31 insider transactions with 23 Sell transactions. Key financial metrics for Cheniere Energy is given below:

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

2. Cabelas Inc (NYSE:CAB): Cabela's Inc, together with its subsidiaries, operates as a specialty retailer and direct marketer of hunting, fishing, camping, and related outdoor merchandise. Cabelas has a market cap of $3.95 billion and is currently trading around $56.48 with a 52-week range of $21.51 to $56.78. The stock has gained 122.19% year to date.

According to SEC filing on October 17, 2012, Cabelas had two insiders combine sold a total of 10,000 shares at a total value of $546,000, 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 eight insider transactions with seven Sell transactions. Key financial metrics for Cabelas is given below:

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

3. Medicis Pharmaceutical Corp (MRX): Medicis Pharmaceutical Corporation is a specialty pharmaceutical company, engages in the development and marketing of various products for the treatment of dermatological and aesthetic conditions in the United States and Canada. Medicis Pharmaceutical has a market cap of $2.59 billion and is currently trading around $43.42 with a 52-week range of $29.76 to $43.70. The stock has gained 30.59% year to date.

According to SEC filing on October 17, 2012, Wortzman Mitchell S (Executive Vice President) sold a total of 11,500 shares at a total value of $499,025, through Rule 10b5-1 trading plan. Over the past three months, there have been a total of 10 insider transactions and all of them are Sell transactions. Key financial metrics for Medicis Pharmaceutical 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 $400,000) from large-cap and mid-cap companies filed at the SEC on October 17, 2012, are as follows:

4. NIKE Inc (NYSE:NKE): NIKE engages in the design, development, marketing, and sale of footwear, apparel, equipment, and accessories for men, women, and children worldwide. NIKE has a market cap of $43.96 billion and is currently trading around $97.57 with a 52-week range of $85.10 to $114.81. The stock has gained 1.25% year to date. According to SEC filing on October 17, 2012, Slusher John F (Vice President) sold a total of 5,129 shares (Class B Common Stock) at a total value of $494,949, through Rule 10b5-1 trading plan.

5. Lennar Corporation (NYSE:LEN): Lennar Corporation engages in homebuilding, financial services, and real estate businesses in the United States. Lennar Corp has a market cap of $7.28 billion and is currently trading around $38.13 with a 52-week range of $14.87 to $38.94. The stock has gained 94.05% year to date. According to SEC filing on October 17, 2012, Lapidus Sidney (Director) sold a total of 8,765 shares (Class A Common Stock) at a total value of $313,699, through Rule 10b5-1 trading plan. Please refer the footnotes from Form 4 for more information on the ownership.

6. Aruba Networks Inc (NASDAQ:ARUN): Aruba Networks provides network access solutions for the mobile enterprises worldwide. Aruba Networks has a market cap of $2.32 billion and is currently trading around $20.44 with a 52-week range of $12.36 to $25.55. The stock has gained 10.37% year to date. According to SEC filing on October 17, 2012, Orr Dominic P (President and CEO) sold a total of 24,200 shares at a total value of $485,728, through Rule 10b5-1 trading plan. Please refer the footnotes from Form 4 for more information on the ownership.

7. Stryker Corporation (NYSE:SYK): Stryker Corporation, together with its subsidiaries, operates as a medical technology company. Stryker Corp has a market cap of $20.09 billion and is currently trading around $52.82 with a 52-week range of $45.44 to $57.15. The stock has gained 6.26% year to date. According to SEC filing on October 17, 2012, Stryker Ronda E (Director) sold a total of 9,000 shares at a total value of $476,144, through Rule 10b5-1 trading plan.

8. Royal Gold Inc (NASDAQ:RGLD): Royal Gold Inc engages in the acquisition and management of precious metals royalties and similar production based interests. Royal Gold Inc has a market cap of $5.25 billion and is currently trading around $89.1 with a 52-week range of $57.00 to $100.84. The stock has gained 32.14% year to date. According to SEC filing on October 17, 2012, Howell S Oden Jr (Director) sold a total of 5,000 shares at a total value of $436,250, through Rule 10b5-1 trading plan.

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, and no plans to initiate any positions within 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. I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.