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$1.2m selling shares at an average price of US$240. However, that sale only accounted for 4.2% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for CorVel

CorVel Insider Transactions Over The Last Year

Notably, that recent sale by Independent Director Steven Hamerslag was not the only time they sold CorVel shares this year. They previously made an even bigger sale of -US$1.8m worth of shares at a price of US$227 per share. That means that an insider was selling shares at slightly below the current price (US$245). 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. It is worth noting that this sale was only 6.7% of Steven Hamerslag's holding.

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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like CorVel better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. CorVel insiders own about US$410m worth of shares (which is 9.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At CorVel Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that CorVel is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with CorVel and understanding it should be part of your investment process.

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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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.