Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial insider move unfolded on May 21, as Yoss, Vice President Accounting at CorVel (NASDAQ:CRVL), reported the acquisition of stock options for 200 shares in an SEC filing.
What Happened: In a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Yoss, Vice President Accounting at CorVel, acquired stock options for 200 shares of CRVL. These options provide Yoss with the right to purchase the company's stock at $270.25 per share.
The Wednesday morning update indicates CorVel shares down by 0.0%, currently priced at $276.5. At this value, Yoss's 200 shares are worth $1,250.
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. CorVel's customized services, delivered locally, are backed by a national team to support clients as well as their customers and patients.
Understanding the Numbers: CorVel's Finances Revenue Growth: Over the 3 months period, CorVel showcased positive performance, achieving a revenue growth rate of 12.78% as of 31 December, 2023. This reflects 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.
Evaluating Earnings Performance:
- Gross Margin: With a low gross margin of 20.84%, 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 1.0.
Understanding Financial Valuation:
- Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 64.15, CorVel's stock is perceived as being overvalued in the market.
- Price to Sales (P/S) Ratio: The current P/S ratio of 6.21 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 38.47, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
The Impact of Insider Transactions on Investments While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Essential Transaction Codes Unveiled When analyzing transactions, investors tend to focus on those in the open market, 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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.