Brokerages Set Select Medical Holdings Co. (NYSE:SEM) Price Target at $26.00

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

SEM has been the topic of several research reports. Royal Bank of Canada cut their target price on Select Medical from $23.00 to $19.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 7th. Benchmark upgraded Select Medical from a “hold” rating to a “buy” rating and set a $23.00 price target on the stock in a research note 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 on the stock. Finally, Wall Street Zen upgraded Select Medical from a “hold” rating to a “buy” rating in a research report on Friday, February 21st.

Insider Activity

In related news, Director Parvinderjit S. Khanuja acquired 21,000 shares of the business’s stock in a transaction that occurred on Monday, May 5th. The shares were bought at an average cost of $15.02 per share, with a total value of $315,420.00. Following the completion of the purchase, the director now directly owns 65,089 shares in the company, valued at $977,636.78. The trade was a 47.63% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, CEO David S. Chernow sold 225,000 shares of Select Medical 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 directly owns 714,516 shares in the company, valued at approximately $12,861,288. This represents a 23.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 11.60% of the company’s stock.

Hedge Funds Weigh In On Select Medical

Several institutional investors have recently added to or reduced their stakes in SEM. Norges Bank acquired a new position in Select Medical in the fourth quarter valued at approximately $29,556,000. The Manufacturers Life Insurance Company grew its holdings in Select Medical by 2,552.7% during the fourth quarter. The Manufacturers Life Insurance Company now owns 1,596,414 shares of the health services provider’s stock worth $30,092,000 after buying an additional 1,536,234 shares in the last quarter. Hood River Capital Management LLC grew its stake in Select Medical by 404.8% in the 4th quarter. Hood River Capital Management LLC now owns 1,755,733 shares of the health services provider’s stock valued at $33,096,000 after purchasing an additional 1,407,902 shares during the period. Invesco Ltd. grew its stake in Select Medical by 48.6% in the 4th quarter. Invesco Ltd. now owns 2,643,943 shares of the health services provider’s stock valued at $49,838,000 after purchasing an additional 864,852 shares during the period. Finally, Bridgeway Capital Management LLC purchased a new position in shares of Select Medical during the 4th quarter valued at $14,074,000. 89.48% of the stock is owned by institutional investors and hedge funds.

Select Medical Price Performance

Shares of SEM opened at $15.49 on Thursday. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 1.37. Select Medical has a 1 year low of $14.03 and a 1 year high of $40.98. The stock has a market cap of $1.99 billion, a P/E ratio of 9.39, a price-to-earnings-growth ratio of 0.64 and a beta of 1.34. The stock’s 50-day moving average price is $15.74 and its two-hundred day moving average price is $17.84.

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

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

Select Medical Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 29th. Investors of record on Thursday, May 15th were paid a $0.0625 dividend. This represents a $0.25 annualized dividend and a yield of 1.61%. The ex-dividend date was Thursday, May 15th. Select Medical’s dividend payout ratio (DPR) is presently 18.66%.

Select Medical Company Profile

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.