Penn Capital Management Company LLC Makes New Investment in Select Medical Holdings Corporation $SEM

Key Points

• Penn Capital Management opened a new position in Select Medical Holdings, buying 128,907 shares worth about $1.91 million in the fourth quarter.
• Select Medical reported mixed quarterly results, with EPS of $0.36 missing estimates while revenue of $1.42 billion slightly topped expectations and rose 5% year over year.
• The company approved a $1 billion share buyback and a quarterly dividend of $0.0625 per share, while analysts currently rate the stock a consensus Hold with a $15.50 price target.

Penn Capital Management Company LLC bought a new position in shares of Select Medical Holdings Corporation (NYSE:SEM - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund bought 128,907 shares of the health services provider's stock, valued at approximately $1,914,000. Penn Capital Management Company LLC owned about 0.10% of Select Medical at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. Royce & Associates LP lifted its position in Select Medical by 12.1% during the 4th quarter. Royce & Associates LP now owns 492,505 shares of the health services provider's stock worth $7,314,000 after acquiring an additional 53,000 shares during the last quarter. New Age Alpha Advisors LLC lifted its position in Select Medical by 11.9% during the 4th quarter. New Age Alpha Advisors LLC now owns 16,138 shares of the health services provider's stock worth $240,000 after acquiring an additional 1,720 shares during the last quarter. Hantz Financial Services Inc. lifted its position in Select Medical by 214.7% during the 4th quarter. Hantz Financial Services Inc. now owns 2,549 shares of the health services provider's stock worth $38,000 after acquiring an additional 1,739 shares during the last quarter. Covestor Ltd lifted its position in Select Medical by 110.0% during the 4th quarter. Covestor Ltd now owns 32,635 shares of the health services provider's stock worth $485,000 after acquiring an additional 17,097 shares during the last quarter. Finally, Handelsbanken Fonder AB lifted its position in Select Medical by 20.1% during the 4th quarter. Handelsbanken Fonder AB now owns 40,011 shares of the health services provider's stock worth $594,000 after acquiring an additional 6,700 shares during the last quarter. Institutional investors and hedge funds own 89.48% of the company's stock.

Select Medical Stock Up 0.1%

Shares of SEM opened at $16.53 on Wednesday. The company has a 50-day simple moving average of $16.40 and a 200-day simple moving average of $15.54. The firm has a market capitalization of $2.05 billion, a P/E ratio of 15.59, a P/E/G ratio of 0.95 and a beta of 1.02. The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.15 and a current ratio of 1.15. Select Medical Holdings Corporation has a 52 week low of $11.65 and a 52 week high of $16.99.

Select Medical (NYSE:SEM - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The health services provider reported $0.36 EPS for the quarter, missing analysts' consensus estimates of $0.43 by ($0.07). The company had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.41 billion. Select Medical had a net margin of 2.42% and a return on equity of 6.62%. The firm's quarterly revenue was up 5.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.44 EPS. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. On average, equities research analysts expect that Select Medical Holdings Corporation will post 1.26 earnings per share for the current year.

Select Medical declared that its board has initiated a stock buyback program on Thursday, February 19th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the health services provider to buy up to 49.5% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's leadership believes its stock is undervalued.

Select Medical Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 28th. Investors of record on Thursday, May 14th will be given a $0.0625 dividend. This represents a $0.25 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Thursday, May 14th. Select Medical's dividend payout ratio is 23.58%.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Weiss Ratings reissued a "hold (c-)" rating on shares of Select Medical in a research report on Wednesday, May 20th. Zacks Research raised shares of Select Medical from a "strong sell" rating to a "hold" rating in a research report on Monday, May 4th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $16.50 price objective (down from $19.00) on shares of Select Medical in a research report on Tuesday, March 3rd. Mizuho reaffirmed a "neutral" rating and set a $16.50 price objective (down from $17.00) on shares of Select Medical in a research report on Tuesday, May 12th. Finally, Wall Street Zen lowered shares of Select Medical from a "buy" rating to a "hold" rating in a research report on Monday, March 9th. One research analyst has rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Select Medical presently has a consensus rating of "Hold" and a consensus target price of $15.50.

Select Medical Company Profile

Select Medical is a leading provider of specialized healthcare services in the United States, operating through two primary business segments: Hospital Division and Outpatient Rehabilitation Division. The Hospital Division offers long-term acute care (LTAC) hospitals and inpatient rehabilitation facilities (IRFs) that serve patients recovering from complex illnesses, trauma or surgery. The Outpatient Rehabilitation Division delivers physical, occupational and speech therapy services through a network of clinic locations and home-based care programs.

Headquartered in Mechanicsburg, Pennsylvania, Select Medical was founded in 1996 and has grown through strategic partnerships, joint ventures and acquisitions.

Want to see what other hedge funds are holding SEM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Select Medical Holdings Corporation (NYSE:SEM - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.