Insiders of SelectQuote Getting Good Value On Their US$1.92m Investment

Last week, SelectQuote, Inc. (NYSE:SLQT) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 16% last week, resulting in a US$42m increase in the company's market worth, implying a 48% gain on their initial purchase. In other words, the original US$1.92m purchase is now worth US$2.84m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for SelectQuote

SelectQuote Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Vice Chairman William Grant bought US$544k worth of shares at a price of US$1.28 per share. We do like to see buying, but this purchase was made at well below the current price of US$1.80. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While SelectQuote insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of SelectQuote

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. SelectQuote insiders own about US$24m worth of shares. That equates to 8.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The SelectQuote Insider Transactions Indicate?

It doesn't really mean much that no insider has traded SelectQuote shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think SelectQuote insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that SelectQuote is showing 3 warning signs in our investment analysis, and 1 of those is significant...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.