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 Victor Clemons, the Executive Chairman recently netted about US$4.1m selling shares at an average price of US$369. However, that sale only accounted for 1.0% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for CorVel

CorVel Insider Transactions Over The Last Year

In fact, the recent sale by Victor Clemons 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$361. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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.

CorVel insiders didn't buy any shares over 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of CorVel

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. CorVel insiders own 9.2% of the company, currently worth about US$567m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About CorVel Insiders?

Insiders sold CorVel shares recently, but they didn't buy any. 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 while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - CorVel has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.