Insider Trading Report: SelectQuote (SLQT)

Thomas Grant, a director at SelectQuote (SLQT), recently bought 144,533 shares. The buy increased his stake by nearly 6 percent, and came to a total price of just under $1.8 million.

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  • Grant was joined by another director who bought 10,000 shares on the same day, at a cost of just over $133,000. And the day before, another director bought 1,000 shares. Overall, company insiders have been active and massive buyers since August.

    Prior to that, insiders, primarily larger owners, have been big sellers of shares, dating back to when the company went public in early 2020. Overall, insiders own over 26 percent of shares.

    The insurance brokerage firm has seen shares slide 44 percent over the past year, as earnings have also been on the decline. Nevertheless, the company is profitable, and trading at 14 times forward earnings with the potential for a bounce back as earnings rebound.

    Action to take: Shares have started moving higher since mid-August, and may mark the start of a longer-term uptrend in shares, reversing the long-term slide in shares that started in May. Investors may like shares for a rebound, although they don’t pay a dividend.

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  • Given the start of a move higher, a call option trade can better leverage that kind of move in the coming months. Traders may like the January $15 calls. Last going for about $1.75, the trade stands a good chance of moving in-the-money in the coming months if the current rally continues.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.