Maxim Shishin At CorVel Acquires Stock Options

A substantial acquisition of company stock options by Maxim Shishin, Chief Information Officer at CorVel CRVL was reported on May 21, based on a new SEC filing.

What Happened: Disclosed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Shishin, Chief Information Officer at CorVel, made a strategic derivative acquisition. This involved acquiring stock options for 500 shares of CRVL, providing the right to buy the company's stock at an exercise price of $270.25 per share.

The latest update on Wednesday morning shows CorVel shares down by 0.0%, trading at $276.5. At this price, Shishin's 500 shares are worth $3,125.

Get to Know CorVel Better

CorVel Corp applies technology including artificial intelligence, machine learning and natural language processing to enhance the managing of episodes of care and the related health care costs. It partners with employers, third-party administrators, insurance companies and government agencies in managing worker's compensation and health, auto and liability services. The company's solutions combine integrated technologies with a human touch. CorVel's customized services, delivered locally, are backed by a national team to support clients as well as their customers and patients.

Understanding the Numbers: CorVel's Finances

Revenue Growth: CorVel's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 12.78%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Holistic Profitability Examination:

• Gross Margin: The company shows a low gross margin of 20.84%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): CorVel's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.0.

Debt Management: CorVel's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.14.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: CorVel's current Price to Earnings (P/E) ratio of 64.15 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 6.21 is above industry norms, reflecting an elevated valuation for CorVel's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 38.47 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Relevance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of CorVel's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.