GSA Capital Partners LLP Buys New Shares in Select Medical Holdings Corporation (NYSE:SEM)

Key Points

• GSA Capital Partners LLP acquired 35,965 shares of Select Medical Holdings Corporation, valued at approximately $601,000, during the first quarter.
• Select Medical reported a net margin of 2.37% and earnings of $0.32 per share, exceeding analysts' expectations for the last quarter.
• The company initiated a $1.00 billion stock buyback program, indicating management believes its stock may be undervalued.

GSA Capital Partners LLP acquired a new position in Select Medical Holdings Corporation (NYSE:SEM - Free Report) in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 35,965 shares of the health services provider's stock, valued at approximately $601,000.

Other hedge funds have also recently made changes to their positions in the company. Covestor Ltd raised its position in Select Medical by 33.5% during the fourth quarter. Covestor Ltd now owns 4,955 shares of the health services provider's stock valued at $93,000 after purchasing an additional 1,244 shares during the period. GAMMA Investing LLC raised its position 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 valued at $109,000 after purchasing an additional 4,453 shares during the period. Lazard Asset Management LLC raised its position in Select Medical by 47.8% during the fourth quarter. Lazard Asset Management LLC now owns 6,974 shares of the health services provider's stock valued at $130,000 after purchasing an additional 2,255 shares during the period. Wealthquest Corp purchased a new stake in Select Medical during the first quarter valued at approximately $143,000. Finally, Quarry LP raised its position in Select Medical by 963.0% during the fourth quarter. Quarry LP now owns 9,078 shares of the health services provider's stock valued at $171,000 after purchasing an additional 8,224 shares during the period. Institutional investors own 89.48% of the company's stock.

Select Medical Price Performance

Shares of SEM traded up $0.19 during trading hours on Wednesday, hitting $11.96. 1,504,150 shares of the stock were exchanged, compared to its average volume of 1,149,519. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.15 and a current ratio of 1.15. The stock's 50-day moving average price is $14.73 and its two-hundred day moving average price is $16.36. The company has a market cap of $1.48 billion, a price-to-earnings ratio of 11.28, a price-to-earnings-growth ratio of 0.65 and a beta of 1.25. Select Medical Holdings Corporation has a 12-month low of $11.65 and a 12-month high of $40.98.

Select Medical (NYSE:SEM - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The health services provider reported $0.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.28 by $0.04. The business had revenue of $1.34 billion during the quarter, compared to analyst estimates of $1.35 billion. Select Medical had a return on equity of 8.87% and a net margin of 2.37%. The business's revenue was up 4.5% compared to the same quarter last year. During the same period in the prior year, the business earned $0.60 earnings per share. Research analysts expect that Select Medical Holdings Corporation will post 1.17 earnings per share for the current year.

Select Medical announced that its Board of Directors has authorized a share buyback plan on Thursday, May 1st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the health services provider to purchase up to 42.6% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

Select Medical Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 28th. Shareholders of record on Wednesday, August 13th will be given a $0.0625 dividend. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a $0.25 dividend on an annualized basis and a yield of 2.1%. Select Medical's dividend payout ratio is presently 23.58%.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Mizuho assumed coverage on Select Medical in a report on Wednesday, April 16th. They set an "outperform" rating and a $25.00 price objective on the stock. Royal Bank Of Canada reduced their price objective on Select Medical from $23.00 to $19.00 and set an "outperform" rating on the stock in a report on Wednesday, May 7th. Finally, UBS Group reduced their price objective on Select Medical from $15.00 to $14.00 and set a "neutral" rating on the stock in a report on Monday. One equities research analyst has rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $24.60.

Select Medical 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.