Janney Montgomery Scott LLC Makes New $416,000 Investment in Select Medical Holdings Corporation (NYSE:SEM)

Janney Montgomery Scott LLC bought a new position in shares of Select Medical Holdings Corporation (NYSE:SEM) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 24,919 shares of the health services provider’s stock, valued at approximately $416,000.

Other hedge funds also recently made changes to their positions in the company. LPL Financial LLC increased its stake in Select Medical by 2.0% during the 4th quarter. LPL Financial LLC now owns 31,441 shares of the health services provider’s stock worth $593,000 after acquiring an additional 619 shares during the period. Vista Finance LLC grew its holdings in shares of Select Medical by 7.0% during the 1st quarter. Vista Finance LLC now owns 10,969 shares of the health services provider’s stock worth $183,000 after purchasing an additional 716 shares in the last quarter. Net Worth Advisory Group raised its stake in Select Medical by 6.4% in the first quarter. Net Worth Advisory Group now owns 14,045 shares of the health services provider’s stock valued at $235,000 after purchasing an additional 846 shares in the last quarter. Bank of Montreal Can lifted its position in Select Medical by 4.5% during the fourth quarter. Bank of Montreal Can now owns 20,030 shares of the health services provider’s stock worth $378,000 after purchasing an additional 867 shares during the period. Finally, Sterling Capital Management LLC lifted its position in Select Medical by 9.5% during the fourth quarter. Sterling Capital Management LLC now owns 11,304 shares of the health services provider’s stock worth $213,000 after purchasing an additional 978 shares during the period. 89.48% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on SEM. Royal Bank Of Canada dropped their target price on shares of Select Medical from $23.00 to $19.00 and set an “outperform” rating for the company in a research report on Wednesday, May 7th. Mizuho began coverage on shares of Select Medical in a research report on Wednesday, April 16th. They set an “outperform” rating and a $25.00 price objective for the company. One analyst has rated the stock with a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $26.00.

Insider Transactions at Select Medical

In other news, CEO David S. Chernow sold 225,000 shares of Select Medical stock in a transaction dated Monday, April 28th. The stock was sold at an average price of $18.00, for a total transaction of $4,050,000.00. Following the sale, the chief executive officer directly owned 714,516 shares of the company’s stock, valued at approximately $12,861,288. This trade represents a 23.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Parvinderjit S. Khanuja acquired 21,000 shares of the stock in a transaction dated Monday, May 5th. The stock was purchased at an average cost of $15.02 per share, with a total value of $315,420.00. Following the purchase, the director directly owned 65,089 shares of the company’s stock, valued at $977,636.78. This trade represents a 47.63% increase in their ownership of the stock. The disclosure for this purchase can be found here. 11.60% of the stock is owned by corporate insiders.

Select Medical Trading Up 1.0%

SEM opened at $15.28 on Friday. The company has a market cap of $1.96 billion, a P/E ratio of 11.40, a PEG ratio of 0.80 and a beta of 1.32. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.87. The company’s 50 day moving average is $15.32 and its 200-day moving average is $17.10. Select Medical Holdings Corporation has a 1-year low of $14.03 and a 1-year high of $40.98.

Select Medical (NYSE:SEM) last issued its earnings results on Thursday, May 1st. The health services provider reported $0.44 earnings per share for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.01). The company had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.40 billion. Select Medical had a net margin of 2.81% and a return on equity of 11.04%. The business’s quarterly revenue was down 24.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.75 EPS. Equities research analysts predict that Select Medical Holdings Corporation will post 1.17 earnings per share for the current fiscal year.

Select Medical Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 29th. Investors of record on Thursday, May 15th were given a dividend of $0.0625 per share. The ex-dividend date was Thursday, May 15th. This represents a $0.25 dividend on an annualized basis and a yield of 1.64%. Select Medical’s dividend payout ratio is currently 18.66%.

Select Medical announced that its Board of Directors has authorized a stock repurchase program on Thursday, May 1st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the health services provider to reacquire up to 42.6% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership 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.