Jean Macino At CorVel Executes Options Exercise, Realizing $801K

In a new SEC filing on July 29, it was revealed that Macino, Board Member at CorVel CRVL, executed a significant exercise of company stock options.

What Happened: Macino, Board Member at CorVel, exercised stock options for 3,000 shares of CRVL stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The exercise price of the options was $40.57 per share.

The Tuesday morning market activity shows CorVel shares down by 0.0%, trading at $307.82. This implies a total value of $801,750 for Macino's 3,000 shares.

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

CorVel: Financial Performance Dissected

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.

Key Profitability Indicators:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 20.94%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): CorVel's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.13.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.13.

Market Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 69.96 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: The current P/S ratio of 6.71 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): With an EV/EBITDA ratio of 42.93, the company's market valuation exceeds industry averages.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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The Impact of Insider Transactions on Investments

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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.