Have CorVel Insiders Been Selling Stock?

We wouldn't blame CorVel Corporation (NASDAQ:CRVL) shareholders if they were a little worried about the fact that Steven Hamerslag, the Independent Director recently netted about US$924k selling shares at an average price of US$84.04. However, that sale only accounted for 3.8% of their holding, so arguably it doesn't say much about their conviction.

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CorVel Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Chair, Michael Combs, sold US$1.3m worth of shares at a price of US$61.38 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$85.69. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 62% of Michael Combs's stake.

Insiders in CorVel didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for CorVel

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.

Does CorVel Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.2% of CorVel shares, worth about US$97m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About CorVel Insiders?

Insiders haven't bought CorVel stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that CorVel is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CorVel. You'd be interested to know, that we found 1 warning sign for CorVel and we suggest you have a look.

Of course CorVel may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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