Select Medical Holdings Corporation (NYSE:SEM) Shares Sold by Neo Ivy Capital Management

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 decreased its holdings in Select Medical Holdings Corporation (NYSE:SEM - Free Report) by 75.6% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm 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 quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of SEM. Royce & Associates LP increased its position in Select Medical by 7.6% during the 1st quarter. Royce & Associates LP now owns 401,355 shares of the health services provider's stock worth $6,703,000 after purchasing an additional 28,190 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in shares of Select Medical in the first quarter worth $325,000. Allianz Asset Management GmbH raised its stake in shares of Select Medical by 15.8% in the 1st quarter. Allianz Asset Management GmbH now owns 57,732 shares of the health services provider's stock valued at $964,000 after acquiring an additional 7,859 shares during the period. Foundry Partners LLC lifted its holdings in shares of Select Medical by 5.9% during the 1st quarter. Foundry Partners LLC now owns 276,156 shares of the health services provider's stock valued at $4,612,000 after acquiring an additional 15,427 shares in the last quarter. Finally, Segall Bryant & Hamill LLC boosted its position in Select Medical by 18.5% during the 1st quarter. Segall Bryant & Hamill LLC now owns 100,828 shares of the health services provider's stock worth $1,684,000 after purchasing an additional 15,729 shares during the period. Institutional investors and hedge funds own 89.48% of the company's stock.

Analysts Set New Price Targets

Several research analysts have commented on SEM shares. 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. Mizuho began coverage on Select Medical in a report on Wednesday, April 16th. They set an "outperform" rating and a $25.00 target price on the stock. One research analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $26.00.

Insider Activity

In related news, Director Parvinderjit S. Khanuja acquired 21,000 shares of Select Medical stock in a transaction on Monday, May 5th. The shares were purchased at an average cost of $15.02 per share, for a total transaction of $315,420.00. Following the purchase, the director directly owned 65,089 shares of the company's stock, valued at $977,636.78. The trade was a 47.63% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 11.60% of the company's stock.

Select Medical Stock Up 0.4%

SEM stock traded up $0.06 during trading on Wednesday, reaching $14.31. The stock had a trading volume of 78,017 shares, compared to its average volume of 1,111,572. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.87. The firm has a fifty day moving average price of $14.88 and a 200 day moving average price of $16.56. The company has a market capitalization of $1.84 billion, a P/E ratio of 10.68, a PEG ratio of 0.75 and a beta of 1.32. Select Medical Holdings Corporation has a 1-year low of $14.00 and a 1-year high of $40.98.

Select Medical (NYSE:SEM - Get Free Report) last released 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 return on equity of 11.04% and a net margin of 2.81%. The business had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.40 billion. During the same quarter last year, the firm posted $0.75 EPS. The company's revenue was down 24.4% compared to the same quarter last year. On average, equities analysts anticipate 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 given a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.75%. The ex-dividend date of this dividend was Thursday, May 15th. Select Medical's payout ratio is currently 18.66%.

Select Medical declared that its Board of Directors has approved a stock repurchase program on Thursday, May 1st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the health services provider to reacquire up to 42.6% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board 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.