UBS Group AG Lowers Stock Holdings in Select Medical Holdings Corporation $SEM

Key Points

• UBS Group AG cut its Select Medical stake by 42.9% in the fourth quarter, selling 141,772 shares and leaving it with 188,793 shares worth about $2.8 million.
• Select Medical missed quarterly earnings expectations, reporting $0.36 EPS versus the $0.43 consensus, though revenue of $1.42 billion slightly topped estimates and rose 5% year over year.
• The company authorized a large buyback and continues paying a dividend, with a $1 billion repurchase plan in place and a quarterly dividend of $0.0625 per share, yielding about 1.5% annually.

UBS Group AG trimmed its holdings in shares of Select Medical Holdings Corporation (NYSE:SEM - Free Report) by 42.9% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 188,793 shares of the health services provider's stock after selling 141,772 shares during the period. UBS Group AG owned approximately 0.15% of Select Medical worth $2,804,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the business. Dimensional Fund Advisors LP lifted its holdings in shares of Select Medical by 4.2% during the third quarter. Dimensional Fund Advisors LP now owns 5,197,343 shares of the health services provider's stock valued at $66,731,000 after purchasing an additional 207,951 shares during the last quarter. State Street Corp lifted its holdings in shares of Select Medical by 1.3% during the second quarter. State Street Corp now owns 4,253,793 shares of the health services provider's stock valued at $64,573,000 after purchasing an additional 55,686 shares during the last quarter. 8 Knots Management LLC purchased a new position in shares of Select Medical during the second quarter valued at approximately $26,568,000. Bank of America Corp DE lifted its holdings in shares of Select Medical by 3.4% during the third quarter. Bank of America Corp DE now owns 1,673,302 shares of the health services provider's stock valued at $21,485,000 after purchasing an additional 54,640 shares during the last quarter. Finally, Millennium Management LLC lifted its holdings in shares of Select Medical by 407.9% during the third quarter. Millennium Management LLC now owns 1,590,339 shares of the health services provider's stock valued at $20,420,000 after purchasing an additional 1,277,233 shares during the last quarter. 89.48% of the stock is currently owned by hedge funds and other institutional investors.

Select Medical Stock Up 0.1%

SEM opened at $16.54 on Tuesday. 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 fifty-two week low of $11.65 and a fifty-two week high of $16.99. The firm's fifty day moving average is $16.39 and its 200 day moving average is $15.52. The stock has a market cap of $2.05 billion, a price-to-earnings ratio of 15.61, a price-to-earnings-growth ratio of 0.95 and a beta of 1.02.

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

Select Medical declared that its board has authorized a share repurchase plan on Thursday, February 19th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the health services provider to buy up to 49.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Select Medical Dividend Announcement

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

Analyst Ratings Changes

Several brokerages recently weighed in on SEM. Royal Bank Of Canada reissued a "sector perform" rating and set a $16.50 price target (down from $19.00) on shares of Select Medical in a research report on Tuesday, March 3rd. Wall Street Zen downgraded shares of Select Medical from a "buy" rating to a "hold" rating in a research report on Monday, March 9th. Weiss Ratings reissued a "hold (c-)" rating on shares of Select Medical in a research report on Wednesday, May 20th. Mizuho reissued 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, Zacks Research raised shares of Select Medical from a "strong sell" rating to a "hold" rating in a research report on Monday, May 4th. One investment analyst has rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $15.50.

Select Medical 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.

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