XTX Topco Ltd Acquires Shares of 27,684 Select Medical Holdings Corporation (NYSE:SEM)

Key Points

• XTX Topco Ltd acquired 27,684 shares of Select Medical Holdings Corporation in Q1, valued at approximately $462,000, reflecting growing institutional interest in the company.
• Select Medical recently announced a $1.00 billion stock buyback plan, allowing for the reacquisition of up to 42.6% of its stock, signaling that the board believes the stock is undervalued.
• The company declared a quarterly dividend of $0.0625 per share, representing an annual yield of 2.1%, with the dividend payout ratio currently at 23.58%.

XTX Topco Ltd acquired a new stake in shares of Select Medical Holdings Corporation (NYSE:SEM - Free Report) in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 27,684 shares of the health services provider's stock, valued at approximately $462,000.

A number of other large investors have also made changes to their positions in SEM. The Manufacturers Life Insurance Company raised its position in shares of Select Medical by 2,552.7% during 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 buying an additional 1,536,234 shares during the last quarter. Hood River Capital Management LLC increased its stake 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 stake in 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 acquiring an additional 864,852 shares during the period. Bridgeway Capital Management LLC bought a new stake in Select Medical in the fourth quarter valued at about $14,074,000. Finally, BNP Paribas Financial Markets increased its stake in Select Medical by 1,965.5% in the fourth quarter. BNP Paribas Financial Markets now owns 551,912 shares of the health services provider's stock valued at $10,404,000 after acquiring an additional 525,192 shares during the period. Institutional investors and hedge funds own 89.48% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on SEM shares. UBS Group reissued a "neutral" rating and issued a $14.00 target price (down previously 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 research note on Wednesday, May 7th. Finally, Mizuho started coverage on shares of Select Medical in a research note on Wednesday, April 16th. They set an "outperform" rating and a $25.00 price objective on the stock. One analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $24.60.

Select Medical Price Performance

Shares of SEM traded up $0.31 during mid-day trading on Tuesday, hitting $12.38. 190,593 shares of the company traded hands, compared to its average volume of 1,147,002. Select Medical Holdings Corporation has a one year low of $11.65 and a one year high of $40.98. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.92. The business has a 50-day moving average of $14.49 and a 200 day moving average of $16.13. The stock has a market capitalization of $1.54 billion, a price-to-earnings ratio of 11.68, a PEG ratio of 0.65 and a beta of 1.25.

Select Medical (NYSE:SEM - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The health services provider reported $0.32 EPS for the quarter, beating the consensus estimate of $0.28 by $0.04. Select Medical had a net margin of 2.37% and a return on equity of 8.87%. The business had revenue of $1.34 billion for the quarter, compared to analysts' expectations of $1.35 billion. During the same period in the prior year, the firm earned $0.60 earnings per share. Select Medical's revenue was up 4.5% compared to the same quarter last year. As a group, equities analysts expect that Select Medical Holdings Corporation will post 1.17 earnings per share for the current fiscal year.

Select Medical declared that its Board of Directors has authorized a stock buyback plan on Thursday, May 1st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the health services provider to purchase up to 42.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Select Medical Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Stockholders of record on Wednesday, August 13th will be paid a dividend of $0.0625 per share. This represents a $0.25 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Wednesday, August 13th. Select Medical's dividend payout ratio is 23.58%.

Select Medical Company 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.