SelectQuote, Inc. (NYSE:SLQT) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10% resulting in a US$32m addition to the company’s market value. In other words, the original US$1.92m purchase is now worth US$3.15m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for SelectQuote

SelectQuote Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Vice Chairman William Grant for US$544k worth of shares, at about US$1.28 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.00. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months SelectQuote insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does SelectQuote Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. SelectQuote insiders own about US$30m worth of shares. That equates to 8.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At SelectQuote Tell Us?

It doesn't really mean much that no insider has traded SelectQuote shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in SelectQuote and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, SelectQuote has 3 warning signs (and 1 which is concerning) we think you should know about.

But note: SelectQuote may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.