Invesco Ltd. Sells 1,109,562 Shares of Select Medical Holdings Corporation $SEM

Key Points

• Invesco Ltd. reduced its stake in Select Medical Holdings Corporation by 42.0%, selling over 1.1 million shares and now holds 1.19% of the company.
• Select Medical reported $1.34 billion in revenue for the recent quarter, slightly below expectations, with an earnings per share of $0.32, exceeding analysts' forecast of $0.28.
• The company has initiated a $1.00 billion stock buyback plan, allowing for the repurchase of up to 42.6% of its shares, signaling potential undervaluation according to its board.

Invesco Ltd. lessened its holdings in Select Medical Holdings Corporation (NYSE:SEM - Free Report) by 42.0% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 1,534,381 shares of the health services provider's stock after selling 1,109,562 shares during the quarter. Invesco Ltd. owned 1.19% of Select Medical worth $25,624,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. GAMMA Investing LLC lifted 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 worth $109,000 after purchasing an additional 4,453 shares during the period. Lazard Asset Management LLC lifted 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 worth $130,000 after purchasing an additional 2,255 shares during the period. Wealthquest Corp bought a new stake in Select Medical during the first quarter worth about $143,000. Quarry LP lifted 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 worth $171,000 after purchasing an additional 8,224 shares during the period. Finally, HBK Investments L P bought a new stake in Select Medical during the fourth quarter worth about $188,000. Institutional investors own 89.48% of the company's stock.

Select Medical Stock Up 0.2%

Shares of NYSE SEM opened at $12.9160 on Thursday. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.92. The company has a market cap of $1.60 billion, a price-to-earnings ratio of 12.19, a PEG ratio of 0.68 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. The stock has a 50-day moving average price of $14.12 and a two-hundred day moving average price of $15.83.

Select Medical (NYSE:SEM - Get Free Report) last issued its earnings results 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 firm had revenue of $1.34 billion during 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 business's quarterly revenue was up 4.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.60 earnings per share. Select Medical has set its FY 2025 guidance at 1.090-1.19 EPS. As a group, analysts forecast that Select Medical Holdings Corporation will post 1.17 earnings per share for the current fiscal year.

Select Medical declared that its board has initiated a stock 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 buy up to 42.6% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Select Medical Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 28th. Stockholders of record on Wednesday, August 13th will be paid a $0.0625 dividend. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a $0.25 annualized dividend and a dividend yield of 1.9%. Select Medical's dividend payout ratio is currently 23.58%.

Analysts Set New Price Targets

SEM has been the subject of several recent analyst reports. Royal Bank Of Canada cut their price objective 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. UBS Group reaffirmed a "neutral" rating and set a $14.00 price objective (down previously from $15.00) on shares of Select Medical in a research report on Monday, August 4th. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $20.25.

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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