Insider Unloading: Maxim Shishin Sells Options, Realizes $1.84M

Maxim Shishin, Chief Information Officer at CorVel CRVL, reported a large exercise of company stock options on August 14, according to a new SEC filing.

What Happened: Shishin, Chief Information Officer at CorVel, exercised stock options for 8,075 shares of CRVL stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The exercise price of the options was $77.93 per share.

The Wednesday morning market activity shows CorVel shares down by 0.0%, trading at $305.23. This implies a total value of $1,835,447 for Shishin's 8,075 shares.

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's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 11.28%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Key Profitability Indicators:

• Gross Margin: With a low gross margin of 22.74%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): CorVel's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.26.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.12.

Insights into Valuation Metrics:

• 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 67.68.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 6.48, 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 EV/EBITDA ratio of 41.24, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Exploring the Significance of Insider Trading

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

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

A Closer Look at Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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.