Victory Capital Management Inc. Has $5.63 Million Stock Holdings in Select Medical Holdings Corporation (NYSE:SEM)

Key Points

• Victory Capital Management Inc. increased its ownership in Select Medical Holdings Corporation by 245.6%, now holding 337,051 shares valued at approximately $5.63 million.
• Select Medical's recent quarterly earnings showed a net margin of 2.81%, with a revenue decline of 24.4% compared to the same quarter last year, missing analysts' estimates.
• The company has authorized a $1 billion stock buyback plan, allowing for the reacquisition of up to 42.6% of its stock, indicating management's belief that its shares are undervalued.

Victory Capital Management Inc. grew its position in shares of Select Medical Holdings Corporation (NYSE:SEM - Free Report) by 245.6% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 337,051 shares of the health services provider's stock after acquiring an additional 239,520 shares during the quarter. Victory Capital Management Inc. owned about 0.26% of Select Medical worth $5,629,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of SEM. Covestor Ltd lifted its stake in shares of Select Medical by 33.5% during the fourth quarter. Covestor Ltd now owns 4,955 shares of the health services provider's stock worth $93,000 after purchasing an additional 1,244 shares in the last quarter. GAMMA Investing LLC grew its position in Select Medical by 217.4% in the first quarter. GAMMA Investing LLC now owns 6,501 shares of the health services provider's stock valued at $109,000 after acquiring an additional 4,453 shares in the last quarter. Lazard Asset Management LLC raised its stake in shares of Select Medical by 47.8% during the fourth quarter. Lazard Asset Management LLC now owns 6,974 shares of the health services provider's stock valued at $130,000 after purchasing an additional 2,255 shares during the period. Wealthquest Corp acquired a new position in shares of Select Medical during the first quarter worth $143,000. Finally, Quarry LP grew its holdings in Select Medical by 963.0% during the 4th quarter. Quarry LP now owns 9,078 shares of the health services provider's stock valued at $171,000 after purchasing an additional 8,224 shares in the last quarter. 89.48% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

SEM has been the subject of a number of analyst reports. Mizuho began coverage on Select Medical in a report on Wednesday, April 16th. They issued an "outperform" rating and a $25.00 price target for the company. Royal Bank Of Canada decreased their price target on shares of 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 investment analyst has rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $26.00.

Select Medical Stock Up 1.7%

SEM stock traded up $0.24 during trading hours on Wednesday, hitting $14.49. The company's stock had a trading volume of 776,297 shares, compared to its average volume of 855,616. 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 stock has a 50 day moving average price of $14.87 and a two-hundred day moving average price of $16.55. The company has a market capitalization of $1.86 billion, a PE ratio of 10.81, a price-to-earnings-growth ratio of 0.76 and a beta of 1.32.

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

Select Medical Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, May 29th. Stockholders of record on Thursday, May 15th were paid a dividend of $0.0625 per share. The ex-dividend date was Thursday, May 15th. This represents a $0.25 annualized dividend and a dividend yield of 1.73%. Select Medical's dividend payout ratio (DPR) is currently 18.66%.

Select Medical declared that its board has authorized a stock buyback 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 generally a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In other news, Director Parvinderjit S. Khanuja bought 21,000 shares of the stock in a transaction on Monday, May 5th. The stock was purchased at an average price of $15.02 per share, with a total value of $315,420.00. Following the completion of the purchase, 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 ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Corporate insiders own 11.60% of the company's stock.

About Select Medical

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.