CorVel Recent Insider Activity

CORSTAR HOLDINGS INC, 10% Owner at CorVel CRVL, disclosed an insider sell on July 10, according to a recent SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, INC sold 10,649 shares of CorVel. The total transaction value is $2,783,237.

Tracking the Thursday's morning session, CorVel shares are trading at $255.5, showing a down of 0.0%.

Discovering CorVel: A Closer Look

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 providing services that include claims management, bill review, preferred provider networks, utilization management, case management, pharmacy services, directed care, and medicare services.

CorVel: A Financial Overview

Revenue Growth: CorVel displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 11.75%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 20.94%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.13, CorVel showcases strong earnings per share.

Debt Management: With a below-average debt-to-equity ratio of 0.13, CorVel adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 58.07 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 5.57 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 35.53 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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The Importance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Transaction Codes To Focus On

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.