Insider Selling: CORSTAR HOLDINGS INC Unloads $6.40M Of CorVel Stock

On September 10, a recent SEC filing unveiled that CORSTAR HOLDINGS INC, 10% Owner at CorVel (NASDAQ:CRVL) made an insider sell.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that INC sold 70,000 shares of CorVel. The total transaction amounted to $6,402,200.

CorVel shares are trading down 0.0% at $85.65 at the time of this writing on Thursday morning.

All You Need to Know 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.

Unraveling the Financial Story of CorVel

Revenue Growth: CorVel displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 10.86%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Interpreting Earnings Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 24.18%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): CorVel's EPS is below the industry average. The company faced challenges with a current EPS of 0.53. This suggests a potential decline in earnings.

Debt Management: With a below-average debt-to-equity ratio of 0.08, CorVel adopts a prudent financial strategy, indicating a balanced approach to debt management.

Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 44.38 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 4.85 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 26.63, CorVel demonstrates a robust market valuation, outperforming industry benchmarks.

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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Exploring the Significance of Insider Trading

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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.