Have Insiders Sold CorVel Shares Recently?

We wouldn't blame CorVel Corporation (NASDAQ:CRVL) shareholders if they were a little worried about the fact that Alan Hoops, the Independent Director recently netted about US$1.9m selling shares at an average price of US$346. However, that sale only accounted for 9.9% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for CorVel

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 slightly below the current price (US$355). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 9.9% of Alan Hoops's stake.

In the last year CorVel insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that CorVel insiders own 9.3% of the company, worth about US$570m. 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 CorVel shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, CorVel makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CorVel. While conducting our analysis, we found that CorVel has 1 warning sign and it would be unwise to ignore it.

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.