NYSE:SLQT) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.” data-reactid=”28″>A look at the shareholders of SelectQuote, Inc. (NYSE:SLQT) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.
With a market capitalization of US$3.3b, SelectQuote is rather large. We’d expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholders can tell us about SelectQuote.
See our latest analysis for SelectQuote ” data-reactid=”30″> See our latest analysis for SelectQuote
What Does The Institutional Ownership Tell Us About SelectQuote?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in SelectQuote. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of SelectQuote, (below). Of course, keep in mind that there are other factors to consider, too.
SelectQuote is not owned by hedge funds. The company’s largest shareholder is Brookside Equity Partners LLC, with ownership of 14%. Meanwhile, the second and third largest shareholders, hold 7.1% and 3.7%, of the shares outstanding, respectively. In addition, we found that Timothy Danker, the CEO has 1.1% of the shares allocated to his name
After doing some more digging, we found that the top 19 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of SelectQuote
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
check here to see if those insiders have been buying recently. ” data-reactid=”72″>Our most recent data indicates that insiders own a reasonable proportion of SelectQuote, Inc.. It is very interesting to see that insiders have a meaningful US$644m stake in this US$3.3b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
With a 36% ownership, the general public have some degree of sway over SelectQuote. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
With an ownership of 14%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
Next Steps:
2 warning signs (and 1 which is a bit concerning) we think you should know about.” data-reactid=”78″>It’s always worth thinking about the different groups who own shares in a company. But to understand SelectQuote better, we need to consider many other factors. Take risks for example – SelectQuote has 2 warning signs (and 1 which is a bit concerning) we think you should know about.
this free report showing whether analysts are predicting a brighter future.” data-reactid=”79″>But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”81″>This article by Simply Wall St is general in nature. 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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