Royce & Associates LP Boosts Stock Position in Select Medical Holdings Corporation (NYSE:SEM)

Key Points

• Royce & Associates LP increased its holdings in Select Medical Holdings Corporation by 7.6% in the first quarter, owning 401,355 shares valued at approximately $6.7 million.
• Several institutional investors made significant changes to their positions in Select Medical during the fourth quarter, with notable increases from The Manufacturers Life Insurance Company and Hood River Capital Management, boosting their stakes by over 2,500% and 400%, respectively.
• Select Medical's board approved a stock repurchase plan to buy back $1.0 billion worth of shares, which represents a significant indication of the company's belief in the undervaluation of its stock.

Royce & Associates LP increased its stake in shares of Select Medical Holdings Corporation (NYSE:SEM - Free Report) by 7.6% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 401,355 shares of the health services provider's stock after purchasing an additional 28,190 shares during the quarter. Royce & Associates LP owned 0.31% of Select Medical worth $6,703,000 as of its most recent SEC filing.

Several other hedge funds have also recently modified their holdings of the stock. Norges Bank acquired a new stake in Select Medical in the fourth quarter valued at $29,556,000. The Manufacturers Life Insurance Company lifted its holdings in Select Medical by 2,552.7% in the fourth quarter. The Manufacturers Life Insurance Company now owns 1,596,414 shares of the health services provider's stock valued at $30,092,000 after acquiring an additional 1,536,234 shares during the period. Hood River Capital Management LLC lifted its holdings in Select Medical by 404.8% in the fourth quarter. Hood River Capital Management LLC now owns 1,755,733 shares of the health services provider's stock valued at $33,096,000 after acquiring an additional 1,407,902 shares during the period. Invesco Ltd. increased its position in shares of Select Medical by 48.6% in the fourth quarter. Invesco Ltd. now owns 2,643,943 shares of the health services provider's stock valued at $49,838,000 after buying an additional 864,852 shares in the last quarter. Finally, Bridgeway Capital Management LLC purchased a new position in shares of Select Medical in the fourth quarter valued at $14,074,000. 89.48% of the stock is owned by institutional investors and hedge funds.

Select Medical Price Performance

Select Medical stock traded down $0.11 during midday trading on Monday, reaching $14.15. 748,781 shares of the company were exchanged, compared to its average volume of 1,120,046. The company has a market capitalization of $1.82 billion, a price-to-earnings ratio of 10.56, a P/E/G ratio of 0.76 and a beta of 1.32. The firm's 50-day simple moving average is $14.92 and its 200-day simple moving average is $16.61. Select Medical Holdings Corporation has a 1 year low of $14.00 and a 1 year high of $40.98. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.16 and a current ratio of 1.16.

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). The business had revenue of $1.35 billion during the quarter, compared to analysts' expectations of $1.40 billion. Select Medical had a net margin of 2.81% and a return on equity of 11.04%. The firm's quarterly revenue was down 24.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.75 EPS. On average, analysts anticipate that Select Medical Holdings Corporation will post 1.17 EPS for the current year.

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

Select Medical Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 29th. Stockholders of record on Thursday, May 15th were paid a $0.0625 dividend. 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%.

Insider Buying and Selling

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

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Mizuho assumed coverage on Select Medical in a research report on Wednesday, April 16th. They issued an "outperform" rating and a $25.00 price target for the company. Royal Bank Of Canada dropped their price target on Select Medical from $23.00 to $19.00 and set an "outperform" rating for the company in a research report on Wednesday, May 7th. One equities research analyst has rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $26.00.

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.