CorVel Stock Is Down 45%, But This Fund Just Made a $20 Million Move

On May 14, 2026, Owls Nest Partners IA disclosed a new position in CorVel (NASDAQ:CRVL), acquiring 348,329 shares in an estimated $20.06 million trade based on quarterly average pricing.

What happened

According to its SEC filing dated May 14, 2026, Owls Nest Partners disclosed a new holding of 348,329 CorVel shares, with the estimated transaction value pegged at $20.06 million based on average closing prices from January through March. The quarter-end position was valued at $19.04 million, a net change that includes underlying price movement over the period. No prior stake was reported in the previous filing.

What else to know

• This is a new position for Owls Nest Partners IA, with CorVel now accounting for 6.66% of reportable AUM as of March 31, 2026.
• Top five holdings following the filing:
  • NASDAQ:TBBK: $58.81 million (20.6% of AUM)
  • NASDAQ:ENSG: $45.38 million (15.9% of AUM)
  • NYSE:TKR: $37.83 million (13.2% of AUM)
  • NYSE:WMS: $36.22 million (12.7% of AUM)
  • NYSE:TGLS: $36.10 million (12.6% of AUM)
• As of Friday, CorVel shares were priced at $62.74, down 45% over the past year and well underperforming the S&P 500, which is instead up about 28% in the same period.

Company overview

Company snapshot

• CorVel provides workers' compensation, auto, liability, and health solutions, including medical fee auditing, claims management, case management, and pharmacy services.
• The firm operates a technology-driven business model leveraging AI and machine learning to manage healthcare claims and optimize medical cost containment.
• It serves employers, third-party administrators, insurance companies, and government agencies seeking to control healthcare-related expenses and improve care quality.

CorVel is a leading provider of technology-enabled healthcare management and cost containment solutions, with a focus on the insurance and risk management sector. The company combines advanced analytics and automation to streamline claims processing and deliver value to clients managing complex healthcare and liability exposures. CorVel's strategic emphasis on innovation and operational efficiency positions it as a competitive player in the evolving insurance services landscape.

What this transaction means for investors

This purchase looks like a contrarian bet on a business that continues to execute even as the stock has fallen sharply, and CorVel's recent results help explain the appeal. Fiscal 2026 revenue climbed 7% to $959 million, while diluted earnings per share increased 17% to $2.14. Fourth-quarter revenue rose 7% to $249 million, and the company ended the year with $233 million in cash and no debt while continuing to repurchase shares.

Management highlighted growing demand for CERIS, its healthcare payment accuracy platform, noting that several large payer wins should provide greater revenue visibility as those deployments scale. The company also pointed to continued investments in AI, automation, telemedicine, cybersecurity, and data integration across its claims management business.

Ultimately, CorVel sits at the intersection of insurance, healthcare cost management, and AI-enabled workflow automation, and with earnings still growing despite the stock's weakness, Owls Nest may be betting that the market has become too pessimistic about a company quietly producing consistent cash flow and expanding margins.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Drainage Systems and CorVel. The Motley Fool has a disclosure policy.