Yesterday, the SelectQuote (NYSE:SLQT) stock had been in the middle of a remarkable selloff and tanked by as much as 47% as investors headed for the exits in a big way. The selloff in the stock ensued yesterday after the company’s earnings in the second fiscal quarter missed analysts’ expectations by a considerable margin.
Trading Data
On Tuesday, SLQT stock slumped 47.32% to $3.44 with more than 36.34 million shares, compared to its average volume of 1.66 million shares. The stock moved within a range of $2.5200 – 3.8000 after opening trade at $2.82.
Earnings Recap
However, another major reason for the selloff was that the company believed that in 2022 its results were going to fall considerably short of analysts’ expectations as well. Such a state of affairs can often need to big selloffs and that is what happened with the SelectQuote stock on Tuesday.
However, that was perhaps not the end of the troubles for the insurance brokerage firm. Daniel Grosslight, who is an analyst at City, downgraded the stock as well and changed the rating from Buy/High Risk to Neutral/High Risk. In addition to that, Grosslight also cut the target price for the stock from $14 a share to $4 a share. In light of these developments, it is quite unlikely that the SelectQuote stock is going to see much of a rebound any time soon. It remains to be seen if the stock tanks further today.
Technical Data
SLQT stock is trading below the 20-Day and 50-Day Moving averages of $7.09 and $8.03 respectively. However, the stock is trading below the 200-Day moving average of $14.56.
