Independent Director of SelectQuote Picks Up 80% More Stock

Investors who take an interest in SelectQuote, Inc. (NYSE:SLQT) should definitely note that the Independent Director, Raymond Weldon, recently paid US$0.49 per share to buy US$201k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 80%, potentially signalling some real optimism.

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SelectQuote Insider Transactions Over The Last Year

In fact, the recent purchase by Raymond Weldon was the biggest purchase of SelectQuote shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$0.49 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid US$551k for 1.04m shares. But insiders sold 4.00k shares worth US$4.1k. In total, SelectQuote insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for SelectQuote

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does SelectQuote Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.5% of SelectQuote shares, worth about US$8.7m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Do The SelectQuote Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on SelectQuote stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SelectQuote. For instance, we've identified 4 warning signs for SelectQuote (2 don't sit too well with us) you should be aware of.

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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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