Bank of America Corp DE Acquires 379,598 Shares of Select Medical Holdings Co. (NYSE:SEM)

Bank of America Corp DE grew its position in Select Medical Holdings Co. (NYSE:SEM - Free Report) by 46.7% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,192,578 shares of the health services provider's stock after acquiring an additional 379,598 shares during the quarter. Bank of America Corp DE owned 0.92% of Select Medical worth $22,480,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in Select Medical by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 12,712,990 shares of the health services provider's stock worth $239,640,000 after acquiring an additional 131,228 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in Select Medical by 1.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 4,431,469 shares of the health services provider's stock worth $83,533,000 after acquiring an additional 62,585 shares during the last quarter. Invesco Ltd. increased 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 worth $49,838,000 after acquiring an additional 864,852 shares during the last quarter. Principal Financial Group Inc. increased its stake in Select Medical by 1.9% in the 4th quarter. Principal Financial Group Inc. now owns 2,403,508 shares of the health services provider's stock worth $45,310,000 after acquiring an additional 45,685 shares during the last quarter. Finally, Hood River Capital Management LLC increased 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 worth $33,096,000 after acquiring an additional 1,407,902 shares during the last quarter. Institutional investors own 89.48% of the company's stock.

Analyst Ratings Changes

SEM has been the topic of a number of research reports. StockNews.com raised Select Medical from a "hold" rating to a "buy" rating in a research note on Friday, February 21st. Mizuho began coverage on Select Medical in a report on Wednesday, April 16th. They issued an "outperform" rating and a $25.00 target price for the company. Benchmark upgraded Select Medical from a "hold" rating to a "buy" rating and set a $23.00 target price for the company in a report on Monday, February 24th. Finally, Royal Bank of Canada dropped their target price on Select Medical from $23.00 to $19.00 and set an "outperform" rating for the company in a report on Wednesday, May 7th. One analyst has rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $26.00.

Select Medical Price Performance

SEM opened at $15.36 on Monday. The business has a fifty day moving average of $16.32 and a 200 day moving average of $20.49. Select Medical Holdings Co. has a 52-week low of $14.03 and a 52-week high of $40.98. 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 stock has a market cap of $1.97 billion, a P/E ratio of 9.31, a PEG ratio of 0.64 and a beta of 1.40.

Select Medical (NYSE:SEM - Get Free Report) last posted its quarterly earnings data on Thursday, May 1st. The health services provider reported $0.44 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 analysts' expectations of $1.40 billion. During the same quarter in the previous year, the firm earned $0.75 EPS. Select Medical's revenue was down 24.4% compared to the same quarter last year. As a group, sell-side analysts anticipate that Select Medical Holdings Co. will post 1.17 EPS for the current year.

Select Medical Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 29th. Investors of record on Thursday, May 15th will be issued a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a yield of 1.63%. The ex-dividend date is Thursday, May 15th. Select Medical's payout ratio is currently 18.66%.

Select Medical declared that its board has approved a stock buyback program on Thursday, May 1st that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the health services provider to repurchase up to 42.6% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its stock is undervalued.

Insider Activity at Select Medical

In other Select Medical news, CEO David S. Chernow sold 225,000 shares of the company's stock in a transaction 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 sale, 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Parvinderjit S. Khanuja bought 21,000 shares of the stock in a transaction on Monday, May 5th. The stock was purchased at an average price of $15.02 per share, with a total value of $315,420.00. Following the completion of the acquisition, the director now directly 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. 11.60% of the stock is owned by company insiders.

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.

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