SelectQuote Inc. (NYSE: SLQT): Hunting Genuine Value In Market Debris

    SBUX Stock
    SBUX Stock

    T. Rowe Price Associates, Inc. (I.. recently announced the acquisition of new stake in SelectQuote Inc. (NYSE:SLQT). This fresh investment now brings its stake to 3.72% valued currently at $107.66 million. In addition, Soros Fund Management LLC raised its holdings by 5.56 million to 5.56 million shares.

    With over 1.7 million SelectQuote Inc. (SLQT) shares trading Tuesday and a closing price of $19.49 on the day, the dollar volume was approximately $33.21 million. The shares have shown a positive weekly performance of 7.98% and its price on 09/01/20 gained nearly 6.79%. Currently, there are 157.75M common shares owned by the public and among those 114.87M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 10 analysts who have offered their price forecasts for SLQT have a consensus price objective of $31.60. The analysts have set the share’s price value over the next 12 months at a high of $38.00 and a low of $25.00 should the stock experience a downside. Incidentally, analysts’ outlook for the SelectQuote Inc. stock is 2.10 for the next 12 months. But an upside of 48.71% will see the stock hit the forecast high price target while mean target price for the stock is $32.00.

    Insiders at the company have transacted a total of 51 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 30 of these insider trades were purchases, accounting for 75,080,112 shares. Insider sales of the common stock occurred on 21 occasions, with total insider shares sold totaling 21,851,440 shares.

    The top 3 mutual fund holders in SelectQuote Inc. are American Century Heritage Fund, T Rowe Price Mid Cap Growth Fund, and Vanguard Total Stock Market Index. American Century Heritage Fund owns 1.48 million shares of the company’s stock, all valued at over $26.46 million. The company bought an additional 1.48 million shares recently to bring their total holdings to about 0.91% of the shares outstanding. Vanguard Total Stock Market Index bought 295.0 shares to bring its total holdings to over 0.94 million shares at a value of $16.73 million. Vanguard Total Stock Market Index now owns shares totaling to 0.58% of the shares outstanding.

    Shares of SelectQuote Inc. (NYSE: SLQT) opened at $18.37, up $0.12 from a prior closing price of $18.25. However, the script later closed the day at $19.49, up 6.79%. The company’s stock has a 5-day price change of 7.98% and -30.39% over the past three months. It has a 12-month low price of $15.76 and touched a high of $29.00 over the same period. Currently, 1.7 million shares have been traded, compared to an average intraday trading volume of 966.05K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.88%, -9.27%, and -15.96% respectively.

    Institutional ownership of SelectQuote Inc. (NYSE: SLQT) shares accounts for 29.60% of the company’s 157.75M shares outstanding. Mutual fund holders own 15.95%, while other institutional holders and individual stakeholders account for 9.43% and 13.48% respectively.

    It has a market capitalization of $3.07B. The stock’s trailing 12-month PE ratio is 42.65, while the earnings-per-share (ttm) stands at $0.46. The company has a PEG of 1.66 and a Quick Ratio of 3.70 with the debt-to-equity ratio at 6.87. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.20% over the week and 5.85% over the month.

    Analysts forecast that SelectQuote Inc. (SLQT) will achieve an EPS of $0.03 for the current quarter, -$0.04 for the next quarter and $0.67 for 2021. The lowest estimate earnings-per-share for the quarter is $0.02 while analysts give the company a high EPS estimate of $0.05. Earnings per share for the fiscal year are expected to increase by 108.00%, and 46.52% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate SelectQuote Inc. (SLQT) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 2 of the 10 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the SLQT, a number of firms have released research notes about the stock. RBC Capital Mkts stated their Outperform rating for the stock in a research note on June 15, 2020, with the firm’s price target at $32. Piper Sandler coverage for the SelectQuote Inc. (SLQT) stock in a research note released on June 15, 2020 offered a Overweight rating with a price target of $32. Morgan Stanley was of a view on June 15, 2020 that the stock is Equal-Weight, while Keefe Bruyette gave the stock Outperform rating on June 15, 2020, issuing a price target of $32. Jefferies on their part issued Hold rating on June 15, 2020.


    Please enter your comment!
    Please enter your name here