Sell Alert: Jeffrey Michael Cashes Out $1.93M In CorVel Stock

Disclosed on April 10, Jeffrey Michael, Director at CorVel CRVL, executed a substantial insider sell as per the latest SEC filing.

What Happened: After conducting a thorough analysis, Michael sold 16,523 shares of CorVel. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $1,933,010.

CorVel shares are trading down 1.39% at $113.3 at the time of this writing on Friday morning.

About CorVel

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.

Understanding the Numbers: CorVel’s Finances

Positive Revenue Trend: Examining CorVel’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.69% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Navigating Financial Profits:

• Gross Margin: With a low gross margin of 23.19%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, CorVel exhibits below-average bottom-line performance with a current EPS of 0.46.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.1.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: CorVel’s P/E ratio of 67.77 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 6.86 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 41.61 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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The Relevance 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.

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to 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.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

The Insider’s Guide to Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.