SelectQuote (NYSE:SLQT) Stock Jumps 2.7% - Still a Buy?

Key Points

• SelectQuote shares rose 2.7% to $0.3410, though the stock remains below its 50-day and 200-day moving averages of $0.53 and $0.74.
• Analyst sentiment is weak: recent firms downgraded the stock, leaving a consensus rating of “Hold” despite a $3.00 average price target.
• SelectQuote missed quarterly expectations, reporting a $0.19 loss per share versus the expected $0.16 loss and revenue of $321.65 million versus $353.44 million forecast.

SelectQuote, Inc. (NYSE:SLQT - Get Free Report)'s share price traded up 2.7% on Thursday. The company traded as high as $0.3444 and last traded at $0.3410. 1,102,517 shares traded hands during trading, a decline of 4% from the average session volume of 1,146,332 shares. The stock had previously closed at $0.3320.

Analyst Ratings Changes

SLQT has been the topic of a number of research analyst reports. Wall Street Zen downgraded shares of SelectQuote from a "hold" rating to a "sell" rating in a research report on Saturday, August 29th. Weiss Ratings downgraded shares of SelectQuote from a "sell (d+)" rating to a "sell (d)" rating in a research note on Monday, August 17th. Finally, Zacks Research cut shares of SelectQuote from a "hold" rating to a "strong sell" rating in a research note on Thursday, August 27th. One analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $3.00.

SelectQuote Price Performance

The firm has a fifty day simple moving average of $0.53 and a 200 day simple moving average of $0.74. The company has a market capitalization of $61.13 million, a PE ratio of -4.26 and a beta of 1.95. The company has a debt-to-equity ratio of 0.99, a quick ratio of 6.57 and a current ratio of 6.57.

SelectQuote (NYSE:SLQT - Get Free Report) last released its quarterly earnings results on Tuesday, August 25th. The company reported ($0.19) earnings per share for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.03). The firm had revenue of $321.65 million during the quarter, compared to the consensus estimate of $353.44 million. SelectQuote had a net margin of 3.84% and a return on equity of 19.70%. Equities analysts anticipate that SelectQuote, Inc. will post -0.20 EPS for the current year.

Hedge Funds Weigh In On SelectQuote

Several hedge funds and other institutional investors have recently modified their holdings of the business. Fragasso Financial Advisors Inc acquired a new stake in shares of SelectQuote during the 3rd quarter worth about $61,000. Squarepoint Ops LLC acquired a new stake in SelectQuote in the 2nd quarter valued at about $536,000. Hsbc Holdings PLC lifted its stake in SelectQuote by 850.0% in the second quarter. Hsbc Holdings PLC now owns 122,430 shares of the company's stock worth $102,000 after acquiring an additional 109,543 shares during the last quarter. Empowered Funds LLC purchased a new position in SelectQuote in the second quarter valued at $245,000. Finally, Corient Private Wealth LP acquired a new position in shares of SelectQuote during the 2nd quarter worth about $71,000. 34.59% of the stock is owned by hedge funds and other institutional investors.

SelectQuote Company Profile

SelectQuote, Inc is a technology-enabled insurance distribution company that helps consumers compare and purchase insurance products through online tools, call centers and licensed agents. The company connects customers with insurance carriers and earns revenue primarily through commissions and other payments for policies sold.

SelectQuote's principal offerings include Medicare-related health insurance, such as Medicare Advantage, Medicare Supplement and prescription drug plans; life insurance, including term and final-expense policies; and auto and home insurance.

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