Yahoo Finance SelectQuote Insiders Up US$1.4m On US$759.2k Investment
Insiders who bought SelectQuote, Inc. (NYSE:SLQT) in the last 12 months may probably not pay attention to the stock's recent 20% drop. After accounting for the recent loss, the US$759.2k worth of shares they purchased is now worth US$2.13m, suggesting a good return on their investment.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for SelectQuote
The Last 12 Months Of Insider Transactions At SelectQuote
Over the last year, we can see that the biggest insider purchase was by Vice Chairman William Grant for US$257k worth of shares, at about US$1.17 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.27. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While SelectQuote insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
SelectQuote is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of SelectQuote
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that SelectQuote insiders own 9.5% of the company, worth about US$53m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At SelectQuote Tell Us?
It doesn't really mean much that no insider has traded SelectQuote shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in SelectQuote and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, SelectQuote has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
