Options Movement At CorVel: Jeffrey Michael Exercises Worth $738K

Disclosed in a recent SEC filing on July 23, Michael, Board Member at CorVel (NASDAQ:CRVL), made a noteworthy transaction involving the exercise of company stock options.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Michael, Board Member at CorVel, a company in the Health Care sector, just exercised stock options worth 9,000 shares of CRVL stock with an exercise price of $11.05.

The latest update on Thursday morning shows CorVel shares down by 0.0%, trading at $93.06. At this price, Michael's 9,000 shares are worth $738,063.

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.

Key Indicators: CorVel's Financial Health

Revenue Growth: CorVel displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 11.72%. This indicates a notable 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.

Key Profitability Indicators:

• 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): CorVel's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.51.

Debt Management: CorVel's debt-to-equity ratio is below the industry average. With a ratio of 0.09, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation:

• Price to Earnings (P/E) Ratio: CorVel's current Price to Earnings (P/E) ratio of 50.85 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 5.4, CorVel's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): CorVel's EV/EBITDA ratio, surpassing industry averages at 30.89, 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.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Illuminating the Importance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Cracking Transaction Codes

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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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