Alan Hoops, Board Member at CorVel (NASDAQ:CRVL), reported a large acquisition of company stock options on August 15, according to a new SEC filing.

CorVel shares are trading up 3.19% at $226.79 at the time of this writing on Tuesday morning. Since the current price is $226.79, this makes Hoops's 500 shares worth $113,395.

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Why Insider Transactions Are Important

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

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. 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.

Transaction Codes To Focus On

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.