SelectQuote (NYSE:SLQT) Cut to Strong Sell at Zacks Research

Key Points

• SelectQuote has been downgraded from a "hold" rating to a "strong sell" rating by Zacks Research, indicating significant concerns about the company's stock performance.
• Despite a recent earnings report that beat expectations, analysts have set a low average target price of $4.42 for SelectQuote, showcasing decreased confidence in its future growth.
• Several institutional investors have recently increased their stakes in SelectQuote, with notable increases seen from TriaGen Wealth Management and Arrowstreet Capital, suggesting some confidence in the company's prospects despite recent downgrades.

Zacks Research downgraded shares of SelectQuote (NYSE:SLQT - Free Report) from a hold rating to a strong sell rating in a research note issued to investors on Wednesday,Zacks.com reports.

A number of other equities analysts have also recently weighed in on SLQT. Jefferies Financial Group began coverage on shares of SelectQuote in a research report on Wednesday, May 21st. They issued a "hold" rating and a $2.75 price objective for the company. Wall Street Zen lowered SelectQuote from a "buy" rating to a "hold" rating in a report on Sunday, June 22nd. Finally, Royal Bank Of Canada lowered their target price on shares of SelectQuote from $7.00 to $6.00 and set a "sector perform" rating for the company in a research note on Tuesday, August 5th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $4.42.

SelectQuote Stock Down 3.3%

Shares of SLQT stock traded down $0.08 during trading hours on Wednesday, reaching $2.19. The company had a trading volume of 823,367 shares, compared to its average volume of 1,689,122. The company has a market capitalization of $377.61 million, a P/E ratio of 43.70 and a beta of 1.27. The company has a debt-to-equity ratio of 0.90, a quick ratio of 5.68 and a current ratio of 5.68. SelectQuote has a twelve month low of $1.62 and a twelve month high of $6.86. The stock's fifty day simple moving average is $2.17 and its 200 day simple moving average is $2.81.

SelectQuote (NYSE:SLQT - Get Free Report) last released its quarterly earnings results on Thursday, August 21st. The company reported ($0.17) earnings per share for the quarter, topping analysts' consensus estimates of ($0.18) by $0.01. SelectQuote had a return on equity of 6.35% and a net margin of 3.12%.The firm had revenue of $345.10 million during the quarter, compared to analysts' expectations of $334.09 million. SelectQuote has set its FY 2026 guidance at EPS. As a group, sell-side analysts expect that SelectQuote will post -0.07 earnings per share for the current fiscal year.

Institutional Trading of SelectQuote

Hedge funds have recently bought and sold shares of the company. Xponance Inc. acquired a new stake in SelectQuote during the 1st quarter worth about $34,000. Virtu Financial LLC bought a new position in shares of SelectQuote in the first quarter worth about $34,000. Johnson Investment Counsel Inc. acquired a new position in SelectQuote during the 1st quarter valued at $35,000. Kapitalo Investimentos Ltda bought a new stake in shares of SelectQuote in the first quarter valued at about $35,000. Finally, Russell Investments Group Ltd. lifted its position in shares of SelectQuote by 90.7% in the 2nd quarter. Russell Investments Group Ltd. now owns 16,133 shares of the company's stock worth $38,000 after acquiring an additional 7,675 shares during the period. 34.59% of the stock is owned by hedge funds and other institutional investors.

SelectQuote Company Profile

SelectQuote, Inc operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies.