1. Stock is showing consistent price increase and is up by 74% (from 7.6 to 13.23 ) since my DD. The whole market was taking a hit last week which also slowed down the momentum a bit but I expected it to start climbing back up.
a. Keep in mind that it has consolidated around $13.22 which is also a bullish sign for next upward run.
2. Insider buying continues to climb as per latest reported data of 9/13 and it is a market buy. The data shows that executives are piling up on their shares.
3. Expansion: Company is very focused on building their analytics capabilities and also recruiting from Ivy-league for leadership roles (Source: Linkedin)
4. Industry Performance: Both ROA and ROA are one of the best in the industry.
5. Investment Rating: Current buy rating is 89% with High PT of $25.28 and lowest of $13 with median of $20.40% ( https://www.marketbeat.com/stocks/NYSE/SLQT/price-target/)
6. SLQT has better profit margins 13.97% which outperforms the industry average of 10.48%. Also it has one of the best return on assets (9.14%) as compared to industry average which also is a good predictor of both short and long term good performance i.e 96% outperformed the industry.
7. Overall SI is around 4-5% which also suggests that institutions don’t find any reason for SLQ to perform poorly and hence shorting it.
8. Options premium are some of the cheapest ones if one is interested in it
9. SLQT as a business have competitive advantage and at least decade more experience in the industry in comparison to its competitors including GOCO- reason why I chose SLTQ instead of GOCO
10. Currently it has entered a resistance level and once broke, it will be testing $17, then $19. Using both quantitative & qualitative analysis, I expect the stock to go in 20s range in next 2-3 weeks (https://www.chartmill.com/stock/quote/SLQT/technical-analysis)
11. The biggest catalyst that can push SLQT to 30s range or even higher is Enrollment Period of October November (Keep in mind that SLQT targets a market where more than 75% of target group uses this platform)
12. I personally believe that even highest price target is very low and it should trade in $50s soon (I work in healthcare industry as consultant and keeping up with trends is how I make living)
Some other highlights:
· Revenue $938 million, up 76% year over year
· Adjusted EBITDA of $228 million, up 48% over last year
· Core senior business ended the fiscal year with revenues of $729 million, up 101%, and adjusted EBITDA of $244 million, up 57%.
· They also have huge upside based on intrinsic value with comparative valuations (https://valueinvesting.io/SLQT/valuation/pe-multiples)
· SelectQuote's quarterly revenue was up 33.2% compared to the same quarter last year.
· Blackrock and Vanguard are the top shareholders
· SelectQuote has a market capitalization of $1.29 billion and generates $531.52 million in revenue each year. The company earns $81.15 million in net income (profit) each year or ($0.16) on an earnings per share basis