Brokerages Set Select Medical Holdings Corporation (NYSE:SEM) PT at $26.00

Select Medical Holdings Corporation (NYSE:SEM) has been given a consensus recommendation of “Moderate Buy” by the five ratings firms that are presently covering the stock, MarketBeat reports. One analyst has rated the stock with a hold rating and four have given a buy rating to the company. The average 1 year price objective among brokers that have covered the stock in the last year is $26.00.

A number of equities research analysts have weighed in on the company. Mizuho assumed coverage on Select Medical in a research note on Wednesday, April 16th. They issued an “outperform” rating and a $25.00 price objective for the company. Royal Bank Of Canada reduced their price objective on Select Medical from $23.00 to $19.00 and set an “outperform” rating for the company in a research note on Wednesday, May 7th.

Insider Buying and Selling

In other news, CEO David S. Chernow sold 225,000 shares of the business’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 transaction, the chief executive officer owned 714,516 shares of the company’s stock, valued at approximately $12,861,288. The trade was a 23.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Parvinderjit S. Khanuja bought 21,000 shares of the company’s stock in a transaction dated Monday, May 5th. The stock was bought at an average cost of $15.02 per share, for a total transaction of $315,420.00. Following the acquisition, the director owned 65,089 shares of the company’s stock, 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. Insiders own 11.60% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Smartleaf Asset Management LLC increased its holdings in shares of Select Medical by 179.0% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,296 shares of the health services provider’s stock valued at $43,000 after purchasing an additional 1,473 shares during the period. Caitong International Asset Management Co. Ltd grew its holdings in Select Medical by 61.6% during the first quarter. Caitong International Asset Management Co. Ltd now owns 2,703 shares of the health services provider’s stock worth $45,000 after acquiring an additional 1,030 shares during the period. BI Asset Management Fondsmaeglerselskab A S acquired a new position in Select Medical during the first quarter worth $60,000. Covestor Ltd grew its holdings in Select Medical by 33.5% during the fourth quarter. Covestor Ltd now owns 4,955 shares of the health services provider’s stock worth $93,000 after acquiring an additional 1,244 shares during the period. Finally, Advisors Asset Management Inc. grew its holdings in Select Medical by 168.2% during the first quarter. Advisors Asset Management Inc. now owns 6,301 shares of the health services provider’s stock worth $105,000 after acquiring an additional 3,952 shares during the period. Institutional investors and hedge funds own 89.48% of the company’s stock.

Select Medical Price Performance

SEM stock opened at $15.14 on Monday. The business has a 50 day moving average price of $15.35 and a 200 day moving average price of $17.13. The stock has a market cap of $1.95 billion, a price-to-earnings ratio of 11.30, a PEG ratio of 0.81 and a beta of 1.32. Select Medical has a fifty-two week low of $14.03 and a fifty-two week high of $40.98. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.87.

Select Medical (NYSE:SEM) last posted its earnings results 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). The business had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.40 billion. Select Medical had a return on equity of 11.04% and a net margin of 2.81%. Select Medical’s revenue for the quarter was down 24.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.75 EPS. Equities research analysts anticipate that Select Medical will post 1.17 earnings per share for the current fiscal year.

Select Medical Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 29th. Stockholders of record on Thursday, May 15th were issued a $0.0625 dividend. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.65%. The ex-dividend date of this dividend was Thursday, May 15th. Select Medical’s payout ratio is currently 18.66%.

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

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.