Bank of America Lowers Select Medical (NYSE:SEM) Price Target to $15.00

Key Points

• Bank of America has reduced its target price for Select Medical stock from $18.00 to $15.00, maintaining a "buy" rating, which suggests a potential upside of 20.19% from its previous close.
• UBS Group has reissued a "neutral" rating with a lowered target price of $14.00, while the average price target across analysts stands at $19.20, indicating a consensus rating of "Moderate Buy."
• Select Medical reported a quarterly earnings per share of $0.32, exceeding estimates, while revenue increased 4.5% year-over-year, highlighting a mixed financial outlook amidst recent analyst pessimism.

Select Medical (NYSE:SEM - Free Report) had its price objective decreased by Bank of America from $18.00 to $15.00 in a research note published on Wednesday,Benzinga reports. Bank of America currently has a buy rating on the health services provider's stock.

Separately, UBS Group reissued a "neutral" rating and issued a $14.00 price target (down previously from $15.00) on shares of Select Medical in a research note on Monday, August 4th. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, Select Medical has an average rating of "Moderate Buy" and a consensus target price of $19.20.

Select Medical Trading Down 2.2%

Select Medical stock traded down $0.28 during mid-day trading on Wednesday, hitting $12.53. 489,877 shares of the company's stock were exchanged, compared to its average volume of 857,438. The firm has a market capitalization of $1.55 billion, a P/E ratio of 11.82, a PEG ratio of 0.52 and a beta of 1.25. Select Medical has a fifty-two week low of $11.65 and a fifty-two week high of $40.98. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.92. The company's 50 day simple moving average is $13.41 and its 200-day simple moving average is $15.12.

Select Medical (NYSE:SEM - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The health services provider reported $0.32 EPS for the quarter, topping the consensus estimate of $0.28 by $0.04. The business had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.35 billion. Select Medical had a return on equity of 8.87% and a net margin of 2.37%.The firm's revenue was up 4.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.60 EPS. Select Medical has set its FY 2025 guidance at 1.090-1.19 EPS. On average, equities analysts anticipate that Select Medical will post 1.17 earnings per share for the current year.

Select Medical Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 28th. Investors of record on Wednesday, August 13th were given a $0.0625 dividend. The ex-dividend date of this dividend was Wednesday, August 13th. This represents a $0.25 dividend on an annualized basis and a dividend yield of 2.0%. Select Medical's payout ratio is currently 23.58%.

Institutional Trading of Select Medical

Hedge funds and other institutional investors have recently modified their holdings of the stock. MAI Capital Management increased its position in shares of Select Medical by 48,000.0% in the second quarter. MAI Capital Management now owns 2,405 shares of the health services provider's stock valued at $37,000 after acquiring an additional 2,400 shares during the last quarter. 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 purchasing an additional 1,030 shares during the period. BI Asset Management Fondsmaeglerselskab A S bought a new position in Select Medical during the first quarter worth about $60,000. 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 purchasing an additional 3,952 shares during the period. Finally, GAMMA Investing LLC grew its holdings in Select Medical by 217.4% during the first quarter. GAMMA Investing LLC now owns 6,501 shares of the health services provider's stock worth $109,000 after purchasing an additional 4,453 shares during the period. Institutional investors and hedge funds own 89.48% of the company's stock.

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.