Of the 12 federal holidays, only nine prompt the closure of the New York Stock Exchange (NYSE). With Labor Day one of them, that leaves only Thanksgiving and Christmas left for this year.
When one of the NYSE observed holidays rolls around, market activity tends to be rather muted. Institutional and retail traders alike often plan their vacations around these events and so there are fewer participants buying and selling stocks. The resulting light trading volume causes those that aren’t on vacation to sit on the sidelines so the effect can get amplified.
That’s not to say that investors should avoid the days preceding and following a market recess. Major corporate headlines can still hit the newswires and big moves in individual stocks can occur. Advantage: non-vacationing traders.
Last week there were several insider trades that those in the know can still benefit from. Let’s look at three of the biggest splashes.
Is it Too Late to Buy Asana Stock?
Between Wednesday and Friday, Dustin Moskovitz purchased more than $72 million worth of Asana (NYSE: ASAN) stock as part of a trading plan. This is a big deal because Mr. Moskovitz happens to be the company’s President, CEO, and Chairman of the Board.
The high-volume buys were executed at prices ranging from $91.06 to $100 and had a significant impact on Asana’s price movement. By Friday, the stock had climbed to a record closing high of $97.61 hitting $102.70 in the process.
The fact that the influential insider bought a massive chunk of his company’s stock when it was trading near all-time highs signals that Asana’s growth outlook remains healthy. For the current quarter management is expecting year-over-year revenue growth to be as high as 60% and up 58% for the current fiscal year.
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With companies around the world adopting hybrid work environments, customers of all shapes and sizes are embracing Asana’s work management software to run their teams. The stock has tripled since May and based on the buying activity of its leader, the run may have only just begun.
Does United Airlines Stock Have More Downside?
On Friday, United Airlines (NASDAQ: UAL) President Brett Hart sold 77,777 shares of the struggling airliner at an average price of $45.14. The unusual share amount riddled with ‘lucky sevens’ was entered a day prior to the anniversary of the September 11th attacks—perhaps as a statement about the fateful day that goes well beyond bad luck.
More importantly, the $3.5 million sale trimmed the executive’s position by nearly 70%. It also came at a time when U.S. airlines are downgrading their financial forecasts due to the impact of rising delta variant cases and harsh hurricane season weather. United Airlines has warned that current-quarter revenue would remain 33% below 2019 levels.
To see a prominent insider deboard in the wake of this news must be disappointing for long-time United Airlines shareholders. The stock clawed back nicely from its pandemic low on expectations of a sharp travel rebound and sustained progress in the fight against COVID-19. But since hitting $63.70 in April, United Airlines stock has descended 30%.
Those that were hoping that the recent pullback would amount to temporary turbulence now have reason to second guess with the airline industry casting a cloudy view in recent days. Last week’s big sale by Mr. Hart could point to more bumpy skies ahead for United Airlines stock.
Are Insiders Buying SelectQuote Stock?
There has been a wave of insider buying activity in SelectQuote (NYSE: SLQT) over the last couple of weeks. One of the biggest moves came last week when board member Thomas Grant bought approximately $1.8 million worth of the stock.
The trades were placed one day apart on Wednesday and Friday and together amounted to a 144,533 share buy. This brought the director’s direct interest in SelectQuote to 839,277 shares. He also has substantial indirect interests through a family trust and an IRA.
The surge of insider trading including Mr. Grant’s purchase comes at a time when the online insurance space had fallen woefully out of favor with the market. SelectQuote shares dipped to a record low of $7.72 last month after the company reported a sharp decline in fourth-quarter profits as consumers hit the pause button on insurance policy purchases.
Still, management struck an upbeat tone about the growth prospects for 2022 and insiders have backed that up by repeatedly selecting the buy button. Sell-side analysts also see strong growth ahead with the consensus forecast calling for 63% earnings growth next year. Last week Piper Sandler gave SelectQuote stock a $20 target which suggests there is another 35% upside.
The stock has bounced 69% off its August 26th bottom in a matter of just 10 trading days. Investors looking for a way to play the digital transformation underway in the insurance industry should note that both insiders and the Street are signing up for SelectQuote.
Companies in This Article:
| Company | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target |
|---|
| SelectQuote (SLQT) | $3.03 | +1.0% | N/A | -10.82 | Moderate Buy | $4.50 |
| United Airlines (UAL) | $97.40 | +1.9% | N/A | 11.75 | Buy | $98.95 |
| Asana (ASAN) | $21.68 | -3.1% | N/A | -19.36 | Hold | $16.53 |
