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 shares of Select Medical Holdings Corporation (NYSE:SEM - Free Report) by 42.0% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,534,381 shares of the health services provider's stock after selling 1,109,562 shares during the period. Invesco Ltd. owned about 1.19% of Select Medical worth $25,624,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. GAMMA Investing LLC increased its holdings in Select Medical by 217.4% during the 1st 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 increased its holdings in Select Medical by 47.8% during the 4th 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 position in Select Medical during the 1st quarter valued at about $143,000. Quarry LP increased its holdings in Select Medical by 963.0% during the 4th 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. Finally, HBK Investments L P purchased a new position in Select Medical during the 4th quarter valued at about $188,000. Hedge funds and other institutional investors own 89.48% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently issued reports on SEM. UBS Group restated a "neutral" rating and set a $14.00 price target (down previously from $15.00) on shares of Select Medical in a report on Monday, August 4th. Royal Bank Of Canada cut their price objective on Select Medical from $23.00 to $19.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 7th. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $20.25.

Select Medical Stock Down 2.5%

Shares of SEM traded down $0.34 during mid-day trading on Tuesday, reaching $12.85. The company had a trading volume of 916,844 shares, compared to its average volume of 1,282,620. 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 firm has a 50-day moving average price of $13.97 and a 200 day moving average price of $15.62. Select Medical Holdings Corporation has a 52 week low of $11.65 and a 52 week high of $40.98. The company has a market capitalization of $1.59 billion, a price-to-earnings ratio of 12.12, a price-to-earnings-growth ratio of 0.54 and a beta of 1.25.

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

Select Medical Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 28th. Investors 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 annualized dividend and a yield of 1.9%. Select Medical's dividend payout ratio is 23.58%.

Select Medical declared that its board has initiated a stock repurchase plan on Thursday, May 1st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the health services provider to repurchase up to 42.6% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's management believes its stock is undervalued.

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.