Director Of CorVel Makes $1.23M Sale

It was reported on February 10, that Steven Hamerslag, Director at CorVel CRVL executed a significant insider sell, according to an SEC filing.

What Happened: Hamerslag’s decision to sell 10,000 shares of CorVel was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $1,234,787.

The latest update on Tuesday morning shows CorVel shares up by 2.86%, trading at $120.75.

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.

Unraveling the Financial Story of CorVel

Revenue Growth: CorVel’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 14.76%. This signifies 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.

Exploring Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 22.62%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): CorVel’s EPS lags behind the industry average, indicating concerns and potential challenges 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.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 69.19 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: A higher-than-average P/S ratio of 7.01 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): CorVel’s EV/EBITDA ratio, surpassing industry averages at 42.5, positions it with an above-average valuation in the market.

Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

The Insider’s Guide to Important 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.

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