Michael G. Combs, CEO and President of CorVel Corp (NASDAQ:CRVL), recently sold 2,886 shares of the company's common stock. The shares were sold at an average price of approximately $361.80, amounting to a total transaction value of $1,044,142. Following this sale, Combs holds 13,947 shares directly.
Additionally, the report shows two transfers of stock totaling 300 shares, which were categorized as gifts and did not involve any monetary exchange. After these transactions, Combs' direct ownership stands at 13,647 shares. These moves were disclosed in a Form 4 filing with the Securities and Exchange Commission.
InvestingPro Insights
The recent stock sale by CorVel Corp's CEO Michael G. Combs comes at a time when the company's shares are trading near their 52-week high, as indicated by InvestingPro data. With a current price of $359.48, the stock is at 96.63% of its 52-week peak, reflecting strong market performance.
This robust performance is further underscored by CorVel's impressive returns across various timeframes. InvestingPro data shows a remarkable 78.08% return over the past year and a 38.04% gain in the last six months. These figures align with the InvestingPro Tip highlighting CorVel's "High return over the last year."
However, investors should note that CorVel's current valuation metrics suggest the stock may be priced at a premium. The company's P/E ratio stands at 74.42, which is considered high and is consistent with the InvestingPro Tip indicating that CorVel is "Trading at a high earnings multiple." This elevated valuation is further emphasized by the company's Price to Book ratio of 21.53, which is significantly above average for most industries.
Despite these high valuation multiples, CorVel has demonstrated solid financial performance. The company's revenue growth of 12.66% over the last twelve months and an operating income margin of 12.02% suggest a healthy business model. These metrics provide context to why the market may be willing to pay a premium for CorVel's shares.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for CorVel Corp, providing a deeper dive into the company's financial health and market position.
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