Options Exercise: Alan Hoops At CorVel Realizes $799K

Disclosed in a recent SEC filing on July 10, Hoops, Board Member at CorVel CRVL, made a noteworthy transaction involving the exercise of company stock options.

What Happened: Hoops, Board Member at CorVel, exercised stock options for 9,000 shares of CRVL stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The exercise price of the options was $11.05 per share.

During Thursday's morning session, CorVel shares up by 0.04%, currently priced at $99.92. Considering the current price, Hoops's 9,000 shares have a total value of $799,443.

Delving into CorVel's Background

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.

A Deep Dive into CorVel's Financials

Revenue Growth: Over the 3 months period, CorVel showcased positive performance, achieving a revenue growth rate of 11.72% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Holistic Profitability Examination:

• Gross Margin: The company faces challenges with a low gross margin of 25.13%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, CorVel exhibits below-average bottom-line performance with a current EPS of 0.51.

Debt Management: With a below-average debt-to-equity ratio of 0.09, CorVel adopts a prudent financial strategy, indicating a balanced approach to debt management.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: CorVel's current Price to Earnings (P/E) ratio of 54.58 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 5.8 is above industry norms, reflecting an elevated valuation for CorVel's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 33.22, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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The Impact of Insider Transactions on Investments

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

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.

Breaking Down the Significance of Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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.