Russell Investments Group Ltd. Raises Stock Position in Select Medical Holdings Corporation $SEM

Key Points

• Russell Investments Group Ltd. increased its stake in Select Medical Holdings Corporation by 143.8%, acquiring an additional 65,946 shares, bringing its total ownership to 111,796 shares valued at approximately $1.87 million.
• Select Medical reported a quarterly earnings per share (EPS) of $0.32, exceeding analysts' estimates, and has set its FY 2025 EPS guidance between 1.090-1.19.
• The company has authorized a $1 billion share repurchase plan, indicating that its Board believes the shares are undervalued, and also announced a quarterly dividend of $0.0625 per share.

Russell Investments Group Ltd. lifted its holdings in Select Medical Holdings Corporation (NYSE:SEM - Free Report) by 143.8% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 111,796 shares of the health services provider's stock after purchasing an additional 65,946 shares during the period. Russell Investments Group Ltd. owned about 0.09% of Select Medical worth $1,867,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also modified their holdings of SEM. Vanguard Group Inc. raised its holdings in shares of Select Medical by 4.7% in the 1st quarter. Vanguard Group Inc. now owns 13,316,069 shares of the health services provider's stock valued at $222,378,000 after purchasing an additional 603,079 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Select Medical by 1.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 4,431,469 shares of the health services provider's stock worth $83,533,000 after buying an additional 62,585 shares during the last quarter. Principal Financial Group Inc. increased its position in Select Medical by 3.1% in the 1st quarter. Principal Financial Group Inc. now owns 2,476,816 shares of the health services provider's stock valued at $41,363,000 after acquiring an additional 73,308 shares during the period. The Manufacturers Life Insurance Company increased its position in shares of 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 worth $30,092,000 after acquiring an additional 1,536,234 shares in the last quarter. Finally, Northern Trust Corp increased its position in Select Medical by 12.9% in the 4th quarter. Northern Trust Corp now owns 1,352,046 shares of the health services provider's stock worth $25,486,000 after purchasing an additional 153,992 shares during the last quarter. Hedge funds and other institutional investors own 89.48% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on SEM. UBS Group reaffirmed a "neutral" rating and issued a $14.00 target price (down from $15.00) on shares of Select Medical in a research note on Monday, August 4th. Royal Bank Of Canada decreased their price objective on shares of Select Medical from $23.00 to $19.00 and set an "outperform" rating on the stock in a report on Wednesday, May 7th. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $20.25.

Select Medical Stock Performance

NYSE SEM traded down $0.02 during trading on Monday, hitting $13.03. 582,797 shares of the company's stock traded hands, compared to its average volume of 1,131,044. Select Medical Holdings Corporation has a 12-month low of $11.65 and a 12-month high of $40.98. The stock has a market capitalization of $1.61 billion, a price-to-earnings ratio of 12.29, a PEG ratio of 0.53 and a beta of 1.25. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.15 and a current ratio of 1.15. The business has a 50 day moving average of $13.85 and a 200-day moving average of $15.48.

Select Medical (NYSE:SEM - Get Free Report) last released its earnings results on Thursday, July 31st. The health services provider reported $0.32 earnings per share for the quarter, topping analysts' consensus estimates of $0.28 by $0.04. The company had revenue of $1.34 billion during the quarter, compared to the consensus estimate of $1.35 billion. Select Medical had a return on equity of 8.87% and a net margin of 2.37%.Select Medical's quarterly revenue was up 4.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.60 EPS. Select Medical has set its FY 2025 guidance at 1.090-1.19 EPS. As a group, equities research analysts anticipate that Select Medical Holdings Corporation will post 1.17 earnings per share for the current fiscal year.

Select Medical Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 28th. Stockholders of record on Wednesday, August 13th were issued a dividend of $0.0625 per share. This represents a $0.25 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend was Wednesday, August 13th. Select Medical's dividend payout ratio is 23.58%.

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.