Denali Advisors LLC Takes $3.91 Million Position in Select Medical Holdings Corporation $SEM

Key Points

• Denali Advisors LLC initiated a new position in Select Medical Holdings, buying 263,100 shares valued at about $3.91 million in the fourth quarter.
• Select Medical reported Q1 earnings of $0.36 per share, missing estimates, though revenue came in slightly above expectations at $1.42 billion and rose 5% year over year.
• The company authorized a $1 billion share buyback and also declared a quarterly dividend of $0.0625 per share, while analysts currently rate the stock a Hold on average.

Denali Advisors LLC acquired a new stake in shares of Select Medical Holdings Corporation (NYSE:SEM - Free Report) during the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 263,100 shares of the health services provider's stock, valued at approximately $3,907,000. Denali Advisors LLC owned 0.21% of Select Medical at the end of the most recent quarter.

Other institutional investors and hedge funds have also modified their holdings of the company. Quantbot Technologies LP bought a new stake in shares of Select Medical during the third quarter valued at approximately $27,000. Cornerstone Planning Group LLC increased its position in shares of Select Medical by 6,868.4% during the third quarter. Cornerstone Planning Group LLC now owns 3,972 shares of the health services provider's stock valued at $51,000 after purchasing an additional 3,915 shares during the period. First Horizon Corp bought a new stake in shares of Select Medical during the fourth quarter valued at approximately $52,000. GAMMA Investing LLC increased its position in shares of Select Medical by 147.9% during the fourth quarter. GAMMA Investing LLC now owns 4,713 shares of the health services provider's stock valued at $70,000 after purchasing an additional 2,812 shares during the period. Finally, Wilmington Savings Fund Society FSB grew its position in Select Medical by 20.9% in the third quarter. Wilmington Savings Fund Society FSB now owns 5,784 shares of the health services provider's stock valued at $74,000 after acquiring an additional 999 shares during the period. 89.48% of the stock is currently owned by institutional investors.

Select Medical Trading Down 0.2%

Shares of SEM opened at $16.42 on Friday. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.88. Select Medical Holdings Corporation has a 12-month low of $11.65 and a 12-month high of $16.99. The firm has a market capitalization of $2.04 billion, a PE ratio of 15.49, a price-to-earnings-growth ratio of 0.94 and a beta of 1.02. The stock's fifty day simple moving average is $16.23 and its 200-day simple moving average is $15.31.

Select Medical (NYSE:SEM - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The health services provider reported $0.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.07). Select Medical had a net margin of 2.42% and a return on equity of 6.62%. The firm had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.41 billion. During the same period last year, the company earned $0.44 EPS. The company's revenue was up 5.0% compared to the same quarter last year. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. As a group, research analysts predict that Select Medical Holdings Corporation will post 1.27 earnings per share for the current year.

Select Medical declared that its Board of Directors has initiated a stock repurchase plan on Thursday, February 19th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the health services provider to reacquire up to 49.5% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's leadership believes its stock is undervalued.

Select Medical Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, May 28th. Stockholders of record on Thursday, May 14th will be paid a dividend of $0.0625 per share. This represents a $0.25 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Thursday, May 14th. Select Medical's dividend payout ratio is 23.58%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on SEM. Weiss Ratings upgraded Select Medical from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, February 20th. Zacks Research upgraded Select Medical from a "strong sell" rating to a "hold" rating in a research report on Monday, May 4th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $16.50 price target (down from $19.00) on shares of Select Medical in a research report on Tuesday, March 3rd. Wall Street Zen cut Select Medical from a "buy" rating to a "hold" rating in a research report on Monday, March 9th. Finally, Benchmark cut Select Medical from a "buy" rating to a "hold" rating in a research report on Wednesday, March 4th. One analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, Select Medical presently has a consensus rating of "Hold" and an average price target of $15.63.

About Select Medical

Select Medical is a leading provider of specialized healthcare services in the United States, operating through two primary business segments: Hospital Division and Outpatient Rehabilitation Division. The Hospital Division offers long-term acute care (LTAC) hospitals and inpatient rehabilitation facilities (IRFs) that serve patients recovering from complex illnesses, trauma or surgery. The Outpatient Rehabilitation Division delivers physical, occupational and speech therapy services through a network of clinic locations and home-based care programs.

Headquartered in Mechanicsburg, Pennsylvania, Select Medical was founded in 1996 and has grown through strategic partnerships, joint ventures and acquisitions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.