CorVel Recent Insider Activity

A substantial insider sell was reported on July 17, by CORSTAR HOLDINGS INC, 10% Owner at CorVel CRVL, based on the recent SEC filing.

What Happened: INC's decision to sell 48,429 shares of CorVel was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $12,950,688.

Monitoring the market, CorVel's shares down by 0.15% at $287.42 during Wednesday's morning.

About CorVel

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.

A Deep Dive into CorVel's Financials

Revenue Growth: Over the 3 months period, CorVel showcased positive performance, achieving a revenue growth rate of 11.75% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 20.94%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): CorVel's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.13.

Debt Management: CorVel's debt-to-equity ratio is below the industry average at 0.13, reflecting a lower dependency on debt financing and a more conservative financial approach.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: CorVel's current Price to Earnings (P/E) ratio of 65.42 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 6.28 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): The company's EV/EBITDA ratio 40.1 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 Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

Cracking Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a 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.