Insider Buying: Joshua Matthews Acquires 97,500 Shares of SelectQuote Inc
On September 18, 2023, Joshua Matthews, President of SelectQuote Senior, made a significant purchase of 97,500 shares of SelectQuote Inc (NYSE:SLQT). This move is noteworthy as insider buying can often be a positive indicator for the company's future performance.
Who is Joshua Matthews?
Joshua Matthews is the President of SelectQuote Senior, a division of SelectQuote Inc. He has been with the company for several years and has played a crucial role in its growth and development. His recent purchase of 97,500 shares indicates a strong belief in the company's future prospects.
About SelectQuote Inc
SelectQuote Inc is a leading provider of direct-to-consumer auto, home, and life insurance products. The company leverages technology to provide a simplified insurance shopping experience and help consumers find the most cost-effective policies that suit their needs. With a market cap of $198.716 million, SelectQuote Inc is a significant player in the insurance industry.
Insider Buying Analysis
Over the past year, the insider has purchased 97,500 shares in total and sold 0 shares. This trend of insider buying is a positive sign as it indicates that those with the most intimate knowledge of the company believe in its potential. The insider transaction history for SelectQuote Inc shows that there have been 8 insider buys in total over the past year, with no insider sells over the same timeframe. This could be a bullish signal for the stock.
Relationship with Stock Price
On the day of the insider's recent buy, shares of SelectQuote Inc were trading for $1.16 apiece. This gives the stock a market cap of $198.716 million. The purchase by the insider at this price point could suggest that they believe the stock is undervalued and has potential for growth.
GF Value Analysis
With a price of $1.16 and a GuruFocus Value of $3.98, SelectQuote Inc has a price-to-GF-Value ratio of 0.29. This suggests that the stock is a possible value trap, and investors should think twice before investing. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor based on the companys past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity at SelectQuote Inc, particularly by Joshua Matthews, could be a positive sign for the company's future performance. However, investors should also consider the company's GF Value and other financial indicators before making investment decisions.
This article first appeared on GuruFocus.
