SelectQuote Faces Shareholder Lawsuit Investigation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Globenewswire
- Shareholder Lawsuit Investigation: Kuehn Law, PLLC is investigating whether SelectQuote, Inc.'s executives breached their fiduciary duties to shareholders, with allegations including failure to disclose the company's direction of Medicare beneficiaries to unsuitable insurance plans.
- Misconduct Allegations: The lawsuit claims that SelectQuote improperly steered Medicare beneficiaries to plans that financially benefited the company, failing to provide unbiased comparison shopping, which could lead to legal and regulatory sanctions.
- Increased Legal Risks: SelectQuote's actions may have violated the False Claims Act, exposing the company to regulatory and legal penalties that could adversely affect its business reputation and future prospects.
- Shareholder Rights Protection: Kuehn Law urges shareholders to contact attorneys promptly to protect their rights, emphasizing the importance of participation in ensuring the integrity and fairness of financial markets.
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Analyst Views on SLQT
Wall Street analysts forecast SLQT stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 0.916
Low
5.00
Averages
6.00
High
7.00
Current: 0.916
Low
5.00
Averages
6.00
High
7.00
About SLQT
SelectQuote, Inc. provides a technology-enabled, direct-to-consumer (DTC) distribution and engagement platform for selling insurance policies and healthcare services. The Company has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote’s Senior division sells Medicare Advantage, Medicare Supplement, Medicare Part D, and other ancillary senior health insurance related products. SelectQuote Healthcare Services comprises SelectRx Pharmacy, a specialized medication management pharmacy, and Population Health which proactively connects its members with healthcare services that fit each member's healthcare needs. SelectQuote’s Auto & Home division primarily sells non-commercial auto and home, property and casualty insurance products. SelectQuote’s Life division sells term life, final expenses, and other ancillary products. SelectRx is a Patient-Centered Pharmacy Home (PCPH) accredited pharmacy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SelectQuote Faces Shareholder Lawsuit Investigation
- Shareholder Lawsuit Investigation: Kuehn Law, PLLC is investigating whether SelectQuote, Inc.'s executives breached their fiduciary duties to shareholders, with allegations including failure to disclose the company's direction of Medicare beneficiaries to unsuitable insurance plans.
- Misconduct Allegations: The lawsuit claims that SelectQuote improperly steered Medicare beneficiaries to plans that financially benefited the company, failing to provide unbiased comparison shopping, which could lead to legal and regulatory sanctions.
- Increased Legal Risks: SelectQuote's actions may have violated the False Claims Act, exposing the company to regulatory and legal penalties that could adversely affect its business reputation and future prospects.
- Shareholder Rights Protection: Kuehn Law urges shareholders to contact attorneys promptly to protect their rights, emphasizing the importance of participation in ensuring the integrity and fairness of financial markets.
See More
SelectQuote Executives Allegedly Breached Fiduciary Duties
- Legal Investigation Initiated: Kuehn Law, PLLC is investigating whether executives at SelectQuote, Inc. breached their fiduciary duties to shareholders, with allegations that include failing to disclose improper guidance to Medicare beneficiaries, potentially exposing the company to legal sanctions.
- Misconduct Allegations: According to a federal securities lawsuit, SelectQuote is accused of intentionally directing Medicare beneficiaries to insurance plans that financially benefited the company rather than those that were most suitable, which may violate applicable laws and regulations.
- Potential Legal Consequences: SelectQuote could face regulatory and legal sanctions for non-compliance with laws and contractual provisions, including claims of violating the False Claims Act, which would severely impact the company's reputation and financial health.
- Shareholder Rights Protection: Kuehn Law urges shareholders to contact attorneys promptly to ensure their rights are protected within a limited timeframe, emphasizing that shareholder voices are crucial for the integrity and fairness of financial markets.
See More
SelectQuote Stock Shows Strong Momentum
- Price Uptrend: SelectQuote (SLQT) has seen a price increase of 15.2% over the past four weeks, reflecting growing investor interest and indicating its increasing attractiveness in the market, which could drive future investment returns.
- Strong Long-Term Performance: The stock has gained 32.9% over the past 12 weeks, demonstrating not only short-term success but also sustained upward potential, attracting more investor attention.
- Momentum Score Advantage: With a Momentum Score of B and a strong trend in earnings estimate revisions, SLQT has achieved a Zacks Rank of #1 (Strong Buy), indicating a higher probability of success for investors entering the stock at this time.
- Reasonable Valuation: SLQT's Price-to-Sales ratio stands at 0.11, meaning investors pay only 11 cents for each dollar of sales, suggesting that the stock maintains a reasonable valuation while experiencing rapid growth, leaving ample room for further appreciation.
See More
SelectQuote Reports Strong Q3 2026 Earnings with Positive Outlook
- Strong Financial Performance: SelectQuote generated $431 million in revenue for Q3 2026, reflecting a 6% year-over-year increase, with adjusted EBITDA reaching $45 million, indicating robust growth across all business segments and boosting market confidence.
- Senior Business Growth: Revenue from the Senior segment grew 8% year-over-year to $183 million, demonstrating the company's successful optimization of commission receivables amid improved approval rates for Medicare Advantage policies, with an anticipated asset benefit of approximately $1 billion in the future.
- SelectRx Challenges and Opportunities: Despite facing headwinds from carrier-specific reimbursement policies and the Inflation Reduction Act, SelectRx's adjusted EBITDA improved sequentially to $5 million, showcasing the company's resilience in seeking profitability in challenging conditions.
- Optimistic Future Outlook: The company reaffirmed its revenue guidance for fiscal 2026 in the range of $1.61 billion to $1.71 billion and adjusted EBITDA guidance between $90 million and $100 million, with management expressing increased confidence in accelerating cash flow, which is expected to drive growth in fiscal 2027.
See More
SelectQuote Q3 Earnings Beat Expectations Despite Revenue Miss
- Earnings Beat: SelectQuote reported a Q3 GAAP EPS of $0.11, exceeding expectations by $0.10, indicating stable profitability that could enhance investor confidence in the company's financial performance.
- Revenue Miss: Despite a year-over-year revenue increase of 5.6% to $430.9 million, the figure fell short of expectations by $8.03 million, highlighting challenges from increased market competition and rising customer acquisition costs that may impact future growth potential.
- Net Income and Adjusted EBITDA: The company achieved a net income of $40.2 million and an adjusted EBITDA of $44.6 million, demonstrating some success in cost control and operational efficiency, which strengthens its overall financial health.
- Fiscal Year 2026 Guidance: SelectQuote projects revenue for FY 2026 to range between $1.61 billion and $1.71 billion, with adjusted EBITDA expected between $90 million and $100 million, reflecting a cautiously optimistic outlook for future growth despite external challenges.
See More
SelectQuote Scheduled to Announce Q3 Earnings on May 5
- Earnings Announcement: SelectQuote (SLQT) is set to release its Q3 earnings results on May 5 before market open, with consensus EPS estimated at $0.01 and revenue projected at $438.93 million, reflecting a 33.5% year-over-year growth.
- Performance Expectations: Over the past year, SelectQuote has exceeded EPS estimates 75% of the time and has beaten revenue estimates 100% of the time, indicating a strong track record of financial performance.
- Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and one downward revision, while revenue estimates have seen four downward adjustments, suggesting market caution regarding the company's future outlook.
- Market Challenges: SelectQuote recently received a notice from the NYSE for having a share price below $1 and has lowered its 2026 guidance amid a $40 million headwind, yet it aims for a senior EBITDA margin of over 20% and operating cash flow between $25 million and $35 million.
See More
SelectQuote Faces Shareholder Lawsuit Investigation
- Shareholder Lawsuit Investigation: Kuehn Law, PLLC is investigating whether SelectQuote, Inc.'s executives breached their fiduciary duties to shareholders, with allegations including failure to disclose the company's direction of Medicare beneficiaries to unsuitable insurance plans.
- Misconduct Allegations: The lawsuit claims that SelectQuote improperly steered Medicare beneficiaries to plans that financially benefited the company, failing to provide unbiased comparison shopping, which could lead to legal and regulatory sanctions.
- Increased Legal Risks: SelectQuote's actions may have violated the False Claims Act, exposing the company to regulatory and legal penalties that could adversely affect its business reputation and future prospects.
- Shareholder Rights Protection: Kuehn Law urges shareholders to contact attorneys promptly to protect their rights, emphasizing the importance of participation in ensuring the integrity and fairness of financial markets.
See More
SelectQuote Executives Allegedly Breached Fiduciary Duties
- Legal Investigation Initiated: Kuehn Law, PLLC is investigating whether executives at SelectQuote, Inc. breached their fiduciary duties to shareholders, with allegations that include failing to disclose improper guidance to Medicare beneficiaries, potentially exposing the company to legal sanctions.
- Misconduct Allegations: According to a federal securities lawsuit, SelectQuote is accused of intentionally directing Medicare beneficiaries to insurance plans that financially benefited the company rather than those that were most suitable, which may violate applicable laws and regulations.
- Potential Legal Consequences: SelectQuote could face regulatory and legal sanctions for non-compliance with laws and contractual provisions, including claims of violating the False Claims Act, which would severely impact the company's reputation and financial health.
- Shareholder Rights Protection: Kuehn Law urges shareholders to contact attorneys promptly to ensure their rights are protected within a limited timeframe, emphasizing that shareholder voices are crucial for the integrity and fairness of financial markets.
See More
SelectQuote Stock Shows Strong Momentum
- Price Uptrend: SelectQuote (SLQT) has seen a price increase of 15.2% over the past four weeks, reflecting growing investor interest and indicating its increasing attractiveness in the market, which could drive future investment returns.
- Strong Long-Term Performance: The stock has gained 32.9% over the past 12 weeks, demonstrating not only short-term success but also sustained upward potential, attracting more investor attention.
- Momentum Score Advantage: With a Momentum Score of B and a strong trend in earnings estimate revisions, SLQT has achieved a Zacks Rank of #1 (Strong Buy), indicating a higher probability of success for investors entering the stock at this time.
- Reasonable Valuation: SLQT's Price-to-Sales ratio stands at 0.11, meaning investors pay only 11 cents for each dollar of sales, suggesting that the stock maintains a reasonable valuation while experiencing rapid growth, leaving ample room for further appreciation.
See More
SelectQuote Reports Strong Q3 2026 Earnings with Positive Outlook
- Strong Financial Performance: SelectQuote generated $431 million in revenue for Q3 2026, reflecting a 6% year-over-year increase, with adjusted EBITDA reaching $45 million, indicating robust growth across all business segments and boosting market confidence.
- Senior Business Growth: Revenue from the Senior segment grew 8% year-over-year to $183 million, demonstrating the company's successful optimization of commission receivables amid improved approval rates for Medicare Advantage policies, with an anticipated asset benefit of approximately $1 billion in the future.
- SelectRx Challenges and Opportunities: Despite facing headwinds from carrier-specific reimbursement policies and the Inflation Reduction Act, SelectRx's adjusted EBITDA improved sequentially to $5 million, showcasing the company's resilience in seeking profitability in challenging conditions.
- Optimistic Future Outlook: The company reaffirmed its revenue guidance for fiscal 2026 in the range of $1.61 billion to $1.71 billion and adjusted EBITDA guidance between $90 million and $100 million, with management expressing increased confidence in accelerating cash flow, which is expected to drive growth in fiscal 2027.
See More
SelectQuote Q3 Earnings Beat Expectations Despite Revenue Miss
- Earnings Beat: SelectQuote reported a Q3 GAAP EPS of $0.11, exceeding expectations by $0.10, indicating stable profitability that could enhance investor confidence in the company's financial performance.
- Revenue Miss: Despite a year-over-year revenue increase of 5.6% to $430.9 million, the figure fell short of expectations by $8.03 million, highlighting challenges from increased market competition and rising customer acquisition costs that may impact future growth potential.
- Net Income and Adjusted EBITDA: The company achieved a net income of $40.2 million and an adjusted EBITDA of $44.6 million, demonstrating some success in cost control and operational efficiency, which strengthens its overall financial health.
- Fiscal Year 2026 Guidance: SelectQuote projects revenue for FY 2026 to range between $1.61 billion and $1.71 billion, with adjusted EBITDA expected between $90 million and $100 million, reflecting a cautiously optimistic outlook for future growth despite external challenges.
See More
SelectQuote Scheduled to Announce Q3 Earnings on May 5
- Earnings Announcement: SelectQuote (SLQT) is set to release its Q3 earnings results on May 5 before market open, with consensus EPS estimated at $0.01 and revenue projected at $438.93 million, reflecting a 33.5% year-over-year growth.
- Performance Expectations: Over the past year, SelectQuote has exceeded EPS estimates 75% of the time and has beaten revenue estimates 100% of the time, indicating a strong track record of financial performance.
- Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and one downward revision, while revenue estimates have seen four downward adjustments, suggesting market caution regarding the company's future outlook.
- Market Challenges: SelectQuote recently received a notice from the NYSE for having a share price below $1 and has lowered its 2026 guidance amid a $40 million headwind, yet it aims for a senior EBITDA margin of over 20% and operating cash flow between $25 million and $35 million.
See More
