Some CorVel Corporation (NASDAQ:CRVL) shareholders may be a little concerned to see that the Independent Director, Alan Hoops, recently sold a substantial US$1.9m worth of stock at a price of US$300 per share. However, that sale only accounted for 9.9% of their holding, so arguably it doesn't say much about their conviction.
CorVel Insider Transactions Over The Last Year
In fact, the recent sale by Alan Hoops was the biggest sale of CorVel shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$295. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Insiders in CorVel didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of CorVel
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. CorVel insiders own 9.7% of the company, currently worth about US$485m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About CorVel Insiders?
Insiders sold CorVel shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that CorVel is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - CorVel has 1 warning sign we think you should be aware of.
But note: CorVel may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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