Major Update: Jennifer Yoss At CorVel Exercises Options, Realizing $0

A large exercise of company stock options by Jennifer Yoss, Vice President Accounting at CorVel CRVL was disclosed in a new SEC filing on January 16, as part of an insider exercise.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Yoss, Vice President Accounting at CorVel, a company in the Health Care sector, just exercised stock options worth 0 shares of CRVL stock with an exercise price of $0.0.

The latest update on Friday morning shows CorVel shares up by 0.8%, trading at $109.62. At this price, Yoss's 0 shares are worth $0.

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.

Financial Insights: CorVel

Revenue Growth: Over the 3 months period, CorVel showcased positive performance, achieving a revenue growth rate of 14.76% as of 30 September, 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.

Interpreting Earnings Metrics:

• Gross Margin: With a low gross margin of 22.62%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): CorVel's EPS reflects a decline, falling below the industry average with a current EPS of 0.456667.

Debt Management: With a below-average debt-to-equity ratio of 0.11, CorVel adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Overview:

• Price to Earnings (P/E) Ratio: CorVel's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 69.27.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 6.69, CorVel's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 42.31, CorVel demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Delving Into the Significance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Essential Transaction Codes Unveiled

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

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

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