Neo Ivy Capital Management Sells 25,913 Shares of Select Medical Holdings Corporation (NYSE:SEM)

Key Points

• Neo Ivy Capital Management dramatically reduced its stake by 75.6% in Select Medical Holdings, now holding 8,386 shares valued at $140,000 after selling 25,913 shares during the first quarter.
• The company's quarterly earnings report indicated a miss on earnings per share and a year-over-year revenue decline of 24.4%, raising concerns among investors.
• Select Medical announced a $1.00 billion stock buyback program and a new quarterly dividend of $0.0625 per share, signaling management's belief in the stock's long-term value.

Neo Ivy Capital Management trimmed its holdings in Select Medical Holdings Corporation (NYSE:SEM - Free Report) by 75.6% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,386 shares of the health services provider's stock after selling 25,913 shares during the quarter. Neo Ivy Capital Management's holdings in Select Medical were worth $140,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the business. LPL Financial LLC lifted its position in Select Medical by 2.0% in the fourth quarter. LPL Financial LLC now owns 31,441 shares of the health services provider's stock worth $593,000 after purchasing an additional 619 shares during the period. Vista Finance LLC lifted its position in Select Medical by 7.0% in the first quarter. Vista Finance LLC now owns 10,969 shares of the health services provider's stock worth $183,000 after purchasing an additional 716 shares during the period. Net Worth Advisory Group lifted its position in Select Medical by 6.4% in the first quarter. Net Worth Advisory Group now owns 14,045 shares of the health services provider's stock worth $235,000 after purchasing an additional 846 shares during the period. Bank of Montreal Can lifted its position in Select Medical by 4.5% in the fourth quarter. Bank of Montreal Can now owns 20,030 shares of the health services provider's stock worth $378,000 after purchasing an additional 867 shares during the period. Finally, Sterling Capital Management LLC lifted its position in Select Medical by 9.5% in the fourth quarter. Sterling Capital Management LLC now owns 11,304 shares of the health services provider's stock worth $213,000 after purchasing an additional 978 shares during the period. 89.48% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts have issued reports on SEM shares. Mizuho started coverage on Select Medical in a report on Wednesday, April 16th. They issued an "outperform" rating and a $25.00 price target on the stock. Royal Bank Of Canada dropped their price target on Select Medical from $23.00 to $19.00 and set an "outperform" rating on the stock in a report on Wednesday, May 7th. One investment analyst has rated the stock with a hold rating and five have given a buy rating to the company's stock. According to data from MarketBeat, Select Medical currently has a consensus rating of "Moderate Buy" and a consensus target price of $26.00.

Insider Activity at Select Medical

In other Select Medical news, Director Parvinderjit S. Khanuja acquired 21,000 shares of the firm's stock in a transaction that occurred on Monday, May 5th. The stock was purchased at an average cost of $15.02 per share, for a total transaction of $315,420.00. Following the completion of the acquisition, the director owned 65,089 shares of the company's stock, valued at approximately $977,636.78. This trade represents a 47.63% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 11.60% of the stock is currently owned by corporate insiders.

Select Medical Stock Down 0.8%

Shares of Select Medical stock traded down $0.11 on Monday, hitting $14.15. 748,781 shares of the company traded hands, compared to its average volume of 1,120,046. The company has a 50-day moving average price of $14.92 and a 200 day moving average price of $16.61. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.87. Select Medical Holdings Corporation has a 12-month low of $14.00 and a 12-month high of $40.98. The company has a market cap of $1.82 billion, a PE ratio of 10.56, a PEG ratio of 0.76 and a beta of 1.32.

Select Medical (NYSE:SEM - Get Free Report) last posted its quarterly earnings results on Thursday, May 1st. The health services provider reported $0.44 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.01). Select Medical had a net margin of 2.81% and a return on equity of 11.04%. The company had revenue of $1.35 billion for the quarter, compared to analysts' expectations of $1.40 billion. During the same quarter in the prior year, the firm earned $0.75 earnings per share. The company's revenue was down 24.4% on a year-over-year basis. Sell-side analysts predict that Select Medical Holdings Corporation will post 1.17 earnings per share for the current year.

Select Medical Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, May 29th. Stockholders of record on Thursday, May 15th were issued a dividend of $0.0625 per share. This represents a $0.25 annualized dividend and a dividend yield of 1.77%. The ex-dividend date was Thursday, May 15th. Select Medical's dividend payout ratio is currently 18.66%.

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

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.