On August 4, 2023, V Clemons, Chairman of the Board at CorVel Corp (CRVL, Financial), sold 4,000 shares of the company's stock. This move is part of a broader trend of insider selling at CorVel Corp over the past year.
V Clemons has been a significant figure at CorVel Corp, a company that provides workers' compensation solutions for employers, third-party administrators, insurance companies, and government agencies seeking to control costs and promote positive outcomes. The company's services include claims management, network solutions, and pharmacy services.
Over the past year, V Clemons has sold a total of 81,386 shares and has not made any purchases. This trend is consistent with the overall insider activity at CorVel Corp, which has seen 41 insider sells and no insider buys over the same period.
The stock was trading at $215.12 per share on the day of V Clemons's recent sale, giving the company a market cap of $3.682 billion. The price-earnings ratio stands at 53.92, significantly higher than the industry median of 12.48 and the company's historical median price-earnings ratio. This suggests that the stock is currently overvalued.
The GuruFocus Value for CorVel Corp is $175.71, resulting in a price-to-GF-Value ratio of 1.22. This indicates that the stock is modestly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
The recent insider sell by V Clemons, along with the overall trend of insider selling at CorVel Corp, could be a signal to investors to exercise caution. While the company's fundamentals remain strong, the high price-earnings ratio and the price-to-GF-Value ratio suggest that the stock may be overvalued at its current price.
As always, investors should conduct their own research and consider multiple factors before making investment decisions.
