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SelectQuote Appears Well Positioned For All-Important Q4

Dec. 03, 2021 2:31 PM ETSelectQuote, Inc. (SLQT)15 Comments


  • SelectQuote went public in May 2020 in an IPO that sold $570 million worth of company shares and selling shareholder stock.
  • The firm operates online-centric insurance marketplaces for various types of insurance coverage.
  • SLQT is building its business around Medicare Advantage enrollments, so the Q4 period is critical for its outlook.
  • I'm optimistic about its preparation efforts for Q4 and I'm Bullish on the stock at around $8.70.
  • Looking for more investing ideas like this one? Get them exclusively at IPO Edge. Learn More »


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A Quick Take On SelectQuote

SelectQuote (NYSE:SLQT) went public in May 2020, in a $570 million IPO when the company raised $360 million and selling shareholders sold $210 million of stock.

The firm operates a group

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This article was written by

Donovan Jones profile picture

Donovan Jones is an IPO research specialist with 15 years of experience identifying opportunities for IPOs. He focuses on high-growth technology, consumer, and life science companies.

He leads the investing group IPO Edge which offers: actionable information on growth stocks through first look S-1 filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates. Learn more.

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Comments (15)

Well what is really disconcerting is the insider buying was done at much higher levels than stock is now. Either insiders had no idea on how comps were trending, or they simply did not look at numbers themselves. The fact the CEO was a big buyer does not bode well. At best this is dead money for 1-2 yrs and SQ will have to try to tap the capital markets due to extreme negative cash flow the next 2 years. I foresee mergers within the industry as a best case scenario.
Berserker Bob profile picture
@150emerson Insiders were net SELLERS, big time, at much higher levels because they knew the company was getting it's ass kicked in by the competition.
@Jonroe Capital yes selling earlier but I’m sure you saw shares purchased from $8-12 before last leg down to $3
Berserker Bob profile picture
@150emerson but that's just for show. When you sell hiigh for $150mil then buy for pennies, it's for show.
johnny inca profile picture
Went long on a small position based on EV/sales, PE and projected growth. Stock went down further so decided to dig in deeper including looking at customer reviews and employee reviews. They have poor customer reviews and seem to have an employee moral problem. I was thinking about buying more but this makes me concerned that the management is a problem. Anybody who worked there or knows someone who can provide any thoughts on management issues?

am I reading this right? The company raised $480 million through new stock sales to pay $275 million dividends. Is this a good business practice?
@worldly in 2020
Berserker Bob profile picture
@worldly not really, these payouts were part of the IPO agreement, one time exceptional "expenses" all known and baked into the cake.
Berserker Bob profile picture
GoHealth is better in every single metric, objective or otherwise. I'd take SLQT over EHTH for absolute certain, but GOCO owns medicare advantage with no sign of that slowing down. If you buy today, you'll get $1.25 in earnings over the next 13 months on a $3.50 investment. This doesn't even take into account revenue growth. This was a good article, but I implore you to take the same analysis over to GoHealth. I look forward to that article. Best wishes and thanks for the content.
HardytheTrader profile picture
I agree with your bullish stance and add some additional perspective:
Insider Buying (last six months)
- at $8.75-13.34 range in $SLQT
- at $3.66-4.68 range in $GOCO
- at $22.53-30.27 range in $EHTH
- at $11.73-21.68 range in $EVER

Digital insurance platforms are getting trashed left and right, Quants are Very Bearish... meanwhile the insiders of the industry are unleashing a buying spree like there is no tommorrow. I am Very Bullish for all companies mentioned and will hold my shares until I am disproven

with all due respect to Author, but this Market is so brutal that this stock will tanked to $4.56 or even lower in short term. My analysis says stay away period.
@djmv215 could you elaborate how do you get a stock price of $4.56 or lower. The space is expected to grow by over 9% and the EV/sales of 1.8 and PE of 18 are expected to drop in half over the next two years. It's hard to imagine the price would drop in half unless they are playing with the numbers.
@djmv215 Great call - you were spot on!
Berserker Bob profile picture
@divemstrgaw Yes, god call. What disaster of a quarter. I certainly hope GoHealth took all their business. We will know soon enough. Cheers.
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