Will Insiders Be Tempted To Buy More SLQT At The New 52-Week Low?

In trading on Thursday, shares of SelectQuote Inc (Symbol: SLQT) touched a new 52-week low of $7.63/share. That’s a $25.37 share price drop, or -76.88% decline from the 52-week high of $33.00 set back on 04/13/2021. Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for SLQT that means the stock would have to gain 332.50% to get back to the 52-week high. For a move like that, SelectQuote Inc would need fundamental strength at the business level.

Here’s a rhetorical question: Who knows more about fundamentals at the business level than the company’s own insiders? So let’s take a look to see whether any company insiders were taking the other side of the trade as SLQT shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period. As summarized by the table below, SLQT has seen 10 different instances of insiders buying over the past six months.

Purchased Insider Title Shares Price/Share Value
08/30/2021 Matthew Scott Gunter See Remarks 1,200 $8.75 $10,498.80
08/30/2021 Timothy Robert Danker CHIEF EXECUTIVE OFFICER 117,000 $8.75 $1,024,101.00
08/30/2021 Raffaele Sadun CHIEF FINANCIAL OFFICER 95,000 $8.90 $845,500.00
08/30/2021 Robert Clay Grant PRESIDENT, SELECTQUOTE SENIOR 230,000 $8.79 $2,021,700.00
08/30/2021 William Thomas Grant III CHIEF OPERATING OFFICER 230,000 $8.85 $2,035,500.00
08/31/2021 Raffaele Sadun CHIEF FINANCIAL OFFICER 4,965 $9.40 $46,671.00
09/02/2021 Denise L. Devine Director 1,500 $11.13 $16,702.50
09/09/2021 Earl H. Devanny III Director 1,000 $12.75 $12,750.00
09/10/2021 W. Thomas Grant II Director 144,533 $12.42 $1,794,534.60
09/10/2021 Raymond F. Weldon Director 10,000 $13.34 $133,378.00
09/13/2021 Donald L. Hawks III Director 10,000 $13.25 $132,503.60

In the short run, while the new 52-week low suggests the stock is at the cheapest price and perhaps therefore the best bargain it has been over the last 52 weeks, the low print also means anyone who has purchased the stock over that timeframe is staring at an unrealized loss. Oftentimes, that factor drives a stock’s technical analysis metrics by creating overhead resistance, with investors who bought higher now anxious to reverse their trade once they are back to breakeven. The chart below shows where SLQT has traded over the past year, with the 50-day and 200-day moving averages included.

Time will tell whether the insider purchases foretell a future rebound for SLQT shares, which are presently showing a last trade of $8.05/share, slightly above the new 52-week low.

Ten Bargains You Can Buy Cheaper Than The Insiders Did »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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