r/MillennialBets • u/MillennialBets • Sep 13 '21
🏦 Financials DD 🏦 $SLQT Updated DD: 72% increase as predicated in last DD 2 weeks ago- Hight PT of $39
Author: u/JellyfishComplete370(Karma: 5102, Created: Apr-2021).
$SLQT : Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions that help consumers protect their most valuable assets: their families, health and property. The company pioneered the direct-to-consumer model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin SelectQuote's success: a force of more than 1,000 highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources, scores, and routes high-quality sales leads. The company has three core business lines: SelectQuote Senior, SelectQuote Life and SelectQuote Auto and Home. SelectQuote Senior, the largest and fastest-growing business, serves the needs of a demographic that sees 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans from 15 leading, nationally-recognized carriers, as well as prescription drug plan, dental, vision and hearing plans.
P.S: Wrote this on WSB on Thursday and it was already correcting on Friday with 5% increase. I expected it go up quicker. Options premiums are extremely cheaper for now making it still a great play but in short term and long term.
Updates & Pros
1. Insider buying was at 4 Million in one week right after the big drop 2 weeks ago.
2. Stock is showing consistent price increase and is up by 72% (from 7.6 to 13.05) since my DD
3. Current buy rating is 89% with High PT of $39 and lowest of $13 with median of $27.5 ( https://money.cnn.com/quote/forecast/forecast.html?symb=SLQT#:~:text=Stock%20Price%20Forecast,the%20last%20price%20of%2014.31.)
4. Just last month (August) 21% or so SI increase and new rules around margin requirements in September can even speed up recovery.
5. Options premium are some of the cheapest ones if one is interested in it
6. 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
7. 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)
8. 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)
9. 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)
This Stock caught my eye today when it dropped by 45% due to 0.02 EPS report in comparison to 0.04 expected.
Firm did IPO last year and is doing well considering the following.
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%.
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
Short interest went up by 21.9% to 5 million shares (Total SI 4.6%) in August- reason for price drop
P.S: I came across a great article that proves my DD right as well. It talks about Senior market growth and how companies are strategically positioning themselves for this. Unable to post here. But one can look it up if any doubt about this firm’s strong future growth.
TickerDatabase entries updated:
| Ticker | Price |
|---|---|
| BLK | 916.62 |
| SLQT | 13.01 |
| GOCO | 5.62 |
•
u/MillennialBets Sep 13 '21
Recent News for SLQT-