SelectQuote, Inc. (NYSE:SLQT) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 19%, resulting in a US$86m rise in the company's market capitalisation, translating to a gain of 170% on their initial investment. In other words, the original US$759.2k purchase is now worth US$2.05m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
SelectQuote Insider Transactions Over The Last Year
The Vice Chairman William Grant made the biggest insider purchase in the last 12 months. That single transaction was for US$257k worth of shares at a price of US$1.17 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.15. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months SelectQuote insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
SelectQuote is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. SelectQuote insiders own about US$46m worth of shares. That equates to 8.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About SelectQuote Insiders?
It doesn't really mean much that no insider has traded SelectQuote shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think SelectQuote insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SelectQuote. For example, SelectQuote has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.
Of course SelectQuote may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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