Vanguard Group Inc. Sells 94,378 Shares of Select Medical Holdings Corporation $SEM

Key Points

• Vanguard trimmed its Select Medical stake slightly, selling 94,378 shares in the fourth quarter but still holding 12.48 million shares, or about 10.08% of the company.
• Select Medical reported mixed quarterly results: EPS of $0.36 missed estimates of $0.43, while revenue of $1.42 billion slightly topped expectations and rose 5% year over year.
• The company announced a quarterly dividend of $0.0625 per share and a new $1 billion share repurchase program, while analysts currently rate the stock a consensus Hold with a $15.63 target price.

Vanguard Group Inc. reduced its holdings in shares of Select Medical Holdings Corporation (NYSE:SEM - Free Report) by 0.8% in the fourth quarter, according to its most recent filing with the SEC. The fund owned 12,477,780 shares of the health services provider's stock after selling 94,378 shares during the period. Vanguard Group Inc. owned about 10.08% of Select Medical worth $185,295,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Quantbot Technologies LP purchased a new position in Select Medical during the 3rd quarter worth $27,000. First Horizon Corp purchased a new position in Select Medical during the 4th quarter worth $52,000. Cornerstone Planning Group LLC increased its holdings in Select Medical by 6,868.4% during the 3rd quarter. Cornerstone Planning Group LLC now owns 3,972 shares of the health services provider's stock worth $51,000 after purchasing an additional 3,915 shares during the period. GAMMA Investing LLC increased its holdings in Select Medical by 147.9% during the 4th quarter. GAMMA Investing LLC now owns 4,713 shares of the health services provider's stock worth $70,000 after purchasing an additional 2,812 shares during the period. Finally, Wilmington Savings Fund Society FSB boosted its position in Select Medical by 20.9% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 5,784 shares of the health services provider's stock valued at $74,000 after acquiring an additional 999 shares in the last quarter. 89.48% of the stock is owned by institutional investors.

Select Medical Stock Performance

NYSE SEM opened at $16.42 on Monday. The stock has a market capitalization of $2.04 billion, a price-to-earnings ratio of 15.49, a PEG ratio of 0.94 and a beta of 1.02. Select Medical Holdings Corporation has a twelve month low of $11.65 and a twelve month high of $16.99. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.88. The stock has a 50-day moving average of $16.23 and a 200 day moving average of $15.31.

Select Medical (NYSE:SEM - Get Free Report) last released its quarterly 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 return on equity of 6.62% and a net margin of 2.42%.The business had revenue of $1.42 billion during the quarter, compared to analyst estimates of $1.41 billion. During the same period in the previous year, the company posted $0.44 EPS. The business's revenue for the quarter 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. Sell-side analysts anticipate that Select Medical Holdings Corporation will post 1.27 EPS for the current fiscal year.

Select Medical Dividend Announcement

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

Select Medical announced that its board has initiated a share repurchase plan on Thursday, February 19th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the health services provider to purchase up to 49.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its shares are undervalued.

Analysts Set New Price Targets

Several brokerages recently weighed in on SEM. Weiss Ratings upgraded Select Medical from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, February 20th. Benchmark downgraded Select Medical from a "buy" rating to a "hold" rating in a report on Wednesday, March 4th. Zacks Research upgraded Select Medical from a "strong sell" rating to a "hold" rating in a research note on Monday, May 4th. Wall Street Zen downgraded Select Medical from a "buy" rating to a "hold" rating in a research note on Monday, March 9th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and set a $16.50 price target (down from $19.00) on shares of Select Medical in a research note on Tuesday, March 3rd. One analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, Select Medical presently has an average rating of "Hold" and a consensus target price of $15.63.

About Select Medical

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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