CorVel Corporation announces a three-for-one stock split and increase in authorized shares, pending regulatory approval.
Quiver AI Summary
CorVel Corporation announced a three-for-one forward stock split of its common stock, which was approved by its Board of Directors. To facilitate this, the Board also approved a proportional increase in the number of authorized shares of common stock, while deciding against increasing authorized shares of preferred stock. The amendment to the company's Certificate of Incorporation needed to effectuate the split will be filed on December 24, 2024, with the split to take effect for shares outstanding on December 23, 2024. Following regulatory approval, trading on a post-split basis is expected to begin on December 26, 2024. CEO Michael G. Combs highlighted the stock split as a strategic move to enhance stock accessibility for investors amidst the company’s strong performance and ongoing focus on healthcare solutions. The release includes cautionary statements about the risks and uncertainties surrounding forward-looking statements.
Potential Positives
- Approval of a three-for-one forward stock split aims to increase stock accessibility for potential investors.
- Stock split correlates with the company's strong financial performance and strategic growth, indicating confidence in ongoing success.
- The increase in authorized shares accommodates the stock split, allowing for future growth opportunities.
- Trading is expected to begin on a post-split basis shortly after the record date, ensuring a smooth transition for shareholders.
Potential Negatives
- The approval of a three-for-one forward stock split may raise concerns among investors about potential volatility in stock prices, as splits can sometimes indicate that a company's stock is overvalued or in need of adjustment to attract more investors.
- The need for a proportionate increase in authorized shares could signal that the company anticipates future capital needs or dilution, which might be perceived negatively by current shareholders.
- The cautionary note regarding forward-looking statements highlights the inherent uncertainties and risks associated with the company's future performance, which may create apprehension among investors regarding potential adverse outcomes.
FAQ
What is the stock split approved by CorVel Corporation?
CorVel Corporation's Board of Directors approved a three-for-one forward stock split of its common stock.
When will the stock split take effect?
The stock split will take effect following the filing on December 24, 2024, with the record date on December 23, 2024.
How will the stock split affect existing shareholders?
Every one share of common stock will be split into three shares for existing shareholders on the record date.
What are the reasons for the stock split?
The stock split is aimed at increasing accessibility for potential investors due to CorVel's strong financial performance.
When is trading expected to begin on a post-split basis?
Trading on a post-stock split adjusted basis is expected to begin on December 26, 2024, pending Nasdaq approval.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CRVL Insider Trading Activity
$CRVL insiders have traded $CRVL stock on the open market 45 times in the past 6 months. Of those trades, 0 have been purchases and 45 have been sales.
Here’s a breakdown of recent trading of $CRVL stock by insiders over the last 6 months:
- MARK E. BERTELS (EVP - Risk Management Services) has traded it 2 times. They made 0 purchases and 2 sales, selling 650 shares.
- V GORDON CLEMONS (Chairman of the Board) has traded it 9 times. They made 0 purchases and 9 sales, selling 25,000 shares.
- MICHAEL G COMBS (CEO & President) has traded it 2 times. They made 0 purchases and 2 sales, selling 5,359 shares.
- ALAN HOOPS has traded it 4 times. They made 0 purchases and 4 sales, selling 11,800 shares.
- R JUDD JESSUP has traded it 2 times. They made 0 purchases and 2 sales, selling 4,631 shares.
- BRANDON O'BRIEN (Chief Financial Officer) has traded it 5 times. They made 0 purchases and 5 sales, selling 1,500 shares.
- MAXIM SHISHIN (Chief Information Officer) has traded it 3 times. They made 0 purchases and 3 sales, selling 8,075 shares.
- JENNIFER YOSS (Vice President of Accounting) has traded it 2 times. They made 0 purchases and 2 sales, selling 1,214 shares.
- STEVEN J HAMERSLAG sold 3,468 shares.
- HOLDINGS INC CORSTAR has traded it 15 times. They made 0 purchases and 15 sales, selling 60,000 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CRVL Hedge Fund Activity
We have seen 121 institutional investors add shares of $CRVL stock to their portfolio, and 106 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ASSENAGON ASSET MANAGEMENT S.A. removed 69,424 shares (-59.9%) from their portfolio in Q3 2024
- MORGAN STANLEY added 27,337 shares (+24.4%) to their portfolio in Q3 2024
- KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC added 20,276 shares (+1.1%) to their portfolio in Q3 2024
- GOLDMAN SACHS GROUP INC added 19,902 shares (+78.0%) to their portfolio in Q3 2024
- JPMORGAN CHASE & CO added 19,667 shares (+106.6%) to their portfolio in Q3 2024
- DIMENSIONAL FUND ADVISORS LP removed 18,442 shares (-3.3%) from their portfolio in Q3 2024
- NORTHERN TRUST CORP added 17,547 shares (+16.8%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
FORT WORTH, Texas, Dec. 13, 2024 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ: CRVL) announces that its Board of Directors approved a three-for-one forward stock split of its common stock. The Board also approved a proportionate increase in the number of authorized shares of common stock to accommodate the stock split. The Board did not approve an increase in the number of authorized shares of preferred stock.
The implementation of the stock split and authorized share increase is subject to the filing of an amendment to the Company’s Fourth Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware, which the Company expects to file on December 24, 2024.
“Our stock price has seen extraordinary growth over the past several years fueled by our strong financial performance and the successful execution of our strategic plan. We believe it is the right time to effect a forward stock split to increase the accessibility of our stock to potential investors while maintaining our focus on delivering our customers enhanced technological solutions for the management of their healthcare needs,” said Michael G. Combs, the Company’s President, Chief Executive Officer and Chairman of the Board.
Following the filing and effectiveness of the amendment, every one share of common stock outstanding or held in treasury on December 23, 2024, the record date for the stock split, will be split into three shares of common stock.
Subject to final approval by the Nasdaq Global Select Market, trading is currently expected to begin on a post-stock split adjusted basis at market open on December 26, 2024.
Cautionary Note Regarding Forward-Looking Statements
This Press Release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements other than statements of historical fact contained in this Press Release, including statements regarding the implementation and timing of the stock split and authorized share increase, and the timing of trading on a post-stock split basis. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results to differ materially and adversely from those expressed, assumed, or implied by the forward-looking statements. Some of the risks and uncertainties that may cause actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024, as well as in our Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Any forward-looking statement made in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. Except as required by applicable law or the listing rules of the Nasdaq Global Select Market, the Company expressly disclaims any intent or obligation to update any forward-looking statements, or to update the reasons actual results could differ materially from those expressed or implied by these forward-looking statements, whether to conform such statements to actual results or changes in expectations, or as a result of the availability of new information.
Contact: Melissa Storan
Phone: 949-851-1473
www.corvel.com
