Mackenzie Financial Corp Cuts Position in Select Medical Holdings Corporation (NYSE:SEM)

Key Points

• Mackenzie Financial Corp reduced its stake in Select Medical Holdings Corporation by 48.1%, selling 31,988 shares, leaving them with 34,509 shares valued at $576,000.
• Select Medical recently reported earnings of $0.32 per share for the last quarter, exceeding expectations of $0.28, despite a year-over-year revenue increase of 4.5% to $1.34 billion.
• The company announced a $0.0625 quarterly dividend with a 2.1% yield and initiated a $1.00 billion stock buyback program, indicating a belief that its shares are undervalued.

Mackenzie Financial Corp cut its holdings in shares of Select Medical Holdings Corporation (NYSE:SEM - Free Report) by 48.1% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 34,509 shares of the health services provider's stock after selling 31,988 shares during the quarter. Mackenzie Financial Corp's holdings in Select Medical were worth $576,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently bought and sold shares of SEM. Covestor Ltd boosted its stake in shares of Select Medical by 33.5% in the 4th quarter. Covestor Ltd now owns 4,955 shares of the health services provider's stock valued at $93,000 after buying an additional 1,244 shares during the period. GAMMA Investing LLC increased its holdings in shares of Select Medical by 217.4% in 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 increased its holdings in shares of Select Medical by 47.8% in 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 acquired a new position in shares of Select Medical in the first quarter valued at approximately $143,000. Finally, Quarry LP grew its holdings 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 acquiring an additional 8,224 shares during the period. 89.48% of the stock is currently owned by hedge funds and other institutional investors.

Select Medical Price Performance

Shares of NYSE:SEM traded up $0.13 on Friday, hitting $12.03. The company had a trading volume of 1,213,116 shares, compared to its average volume of 1,208,755. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.92. Select Medical Holdings Corporation has a 52-week low of $11.65 and a 52-week high of $40.98. The business has a 50 day moving average of $14.55 and a 200 day moving average of $16.20. The company has a market cap of $1.49 billion, a PE ratio of 11.35, a PEG ratio of 0.65 and a beta of 1.25.

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

Select Medical Announces Dividend

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

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

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on SEM. Royal Bank Of Canada dropped 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. UBS Group lowered their target price on Select Medical from $15.00 to $14.00 and set a "neutral" rating on the stock in a report on Monday, August 4th. Finally, Mizuho began coverage on Select Medical in a report on Wednesday, April 16th. They issued an "outperform" rating and a $25.00 target price on the stock. One analyst has rated the stock with a hold rating and five have given a buy rating to the company. According to data from MarketBeat.com, Select Medical currently has a consensus rating of "Moderate Buy" and an average target price 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.