Select Medical Holdings Co. (NYSE:SEM) Receives $26.00 Average PT from Analysts

Shares of Select Medical Holdings Co. (NYSE:SEM) have been assigned a consensus rating of “Moderate Buy” from the five brokerages that are presently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a hold rating and four have assigned a buy rating to the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $26.00.

A number of equities research analysts recently commented on SEM shares. StockNews.com raised Select Medical from a “hold” rating to a “buy” rating in a research note on Friday, February 21st. Benchmark upgraded Select Medical from a “hold” rating to a “buy” rating and set a $23.00 target price for the company in a research report on Monday, February 24th. Mizuho began coverage on Select Medical in a research note on Wednesday, April 16th. They issued an “outperform” rating and a $25.00 price target for the company. Finally, Royal Bank of Canada reduced their price objective on shares of Select Medical from $23.00 to $19.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 7th.

Insider Buying and Selling at Select Medical

In other news, CEO David S. Chernow sold 225,000 shares of the company’s stock in a transaction that occurred on Monday, April 28th. The stock was sold at an average price of $18.00, for a total value of $4,050,000.00. Following the completion of the transaction, the chief executive officer now owns 714,516 shares of the company’s stock, valued at $12,861,288. This represents a 23.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Parvinderjit S. Khanuja purchased 21,000 shares of the firm’s stock in a transaction on Monday, May 5th. The stock was acquired at an average price of $15.02 per share, with a total value of $315,420.00. Following the completion of the transaction, the director now owns 65,089 shares in the company, valued at approximately $977,636.78. This trade represents a 47.63% increase in their position. The disclosure for this purchase can be found here. Company insiders own 11.60% of the company’s stock.

Hedge Funds Weigh In On Select Medical

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Smartleaf Asset Management LLC boosted its stake in Select Medical by 179.0% during the fourth quarter. Smartleaf Asset Management LLC now owns 2,296 shares of the health services provider’s stock worth $43,000 after acquiring an additional 1,473 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its stake in shares of Select Medical by 61.6% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 2,703 shares of the health services provider’s stock valued at $45,000 after buying an additional 1,030 shares during the period. BI Asset Management Fondsmaeglerselskab A S bought a new stake in Select Medical in the 1st quarter valued at about $60,000. Covestor Ltd raised its stake in Select Medical by 33.5% during the 4th quarter. Covestor Ltd now owns 4,955 shares of the health services provider’s stock worth $93,000 after buying an additional 1,244 shares during the period. Finally, GAMMA Investing LLC boosted its holdings in Select Medical by 217.4% in the first quarter. GAMMA Investing LLC now owns 6,501 shares of the health services provider’s stock worth $109,000 after acquiring an additional 4,453 shares in the last quarter. Institutional investors and hedge funds own 89.48% of the company’s stock.

Select Medical Price Performance

NYSE:SEM opened at $15.19 on Friday. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 1.37. The firm has a market cap of $1.95 billion, a PE ratio of 9.21, a price-to-earnings-growth ratio of 0.64 and a beta of 1.40. Select Medical has a 12 month low of $14.03 and a 12 month high of $40.98. The company’s 50-day moving average price is $16.35 and its two-hundred day moving average price is $20.70.

Select Medical (NYSE:SEM) last released its quarterly earnings results on Thursday, May 1st. The health services provider reported $0.44 EPS for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.01). Select Medical had a return on equity of 14.04% and a net margin of 3.23%. The business had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.40 billion. During the same quarter last year, the company earned $0.75 earnings per share. The firm’s revenue was down 24.4% on a year-over-year basis. On average, equities analysts anticipate that Select Medical will post 1.17 EPS for the current fiscal year.

Select Medical declared that its Board of Directors has initiated a share repurchase plan on Thursday, May 1st that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the health services provider to repurchase up to 42.6% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

Select Medical Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 29th. Shareholders of record on Thursday, May 15th will be paid a dividend of $0.0625 per share. The ex-dividend date is Thursday, May 15th. This represents a $0.25 dividend on an annualized basis and a yield of 1.65%. Select Medical’s dividend payout ratio (DPR) is presently 18.66%.

About Select Medical

Select Medical Holdings Corporation, through its subsidiaries, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. It operates in four segments: Critical Illness Recovery Hospital, Rehabilitation Hospital, Outpatient Rehabilitation, and Concentra.