Hsbc Holdings PLC Buys 67,362 Shares of Select Medical Holdings Co. (NYSE:SEM)

Hsbc Holdings PLC raised its position in shares of Select Medical Holdings Co. (NYSE:SEM - Free Report) by 270.1% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 92,305 shares of the health services provider's stock after buying an additional 67,362 shares during the quarter. Hsbc Holdings PLC owned 0.07% of Select Medical worth $1,751,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently made changes to their positions in SEM. Vanguard Group Inc. boosted its stake in Select Medical by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 12,712,990 shares of the health services provider's stock worth $239,640,000 after purchasing an additional 131,228 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of Select Medical by 1.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,431,469 shares of the health services provider's stock valued at $83,533,000 after purchasing an additional 62,585 shares in the last quarter. Invesco Ltd. boosted its position in shares of Select Medical by 48.6% in the fourth quarter. Invesco Ltd. now owns 2,643,943 shares of the health services provider's stock worth $49,838,000 after buying an additional 864,852 shares during the period. Principal Financial Group Inc. grew its holdings in shares of Select Medical by 1.9% during the fourth quarter. Principal Financial Group Inc. now owns 2,403,508 shares of the health services provider's stock valued at $45,310,000 after buying an additional 45,685 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its stake in Select Medical by 0.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,656,320 shares of the health services provider's stock worth $31,222,000 after acquiring an additional 10,000 shares in the last quarter. 89.48% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Royal Bank of Canada reduced their price target on shares of Select Medical from $47.00 to $23.00 and set an "outperform" rating for the company in a research report on Monday, February 24th. Mizuho initiated coverage on shares of Select Medical in a research note on Wednesday, April 16th. They set an "outperform" rating and a $25.00 target price for the company. StockNews.com raised shares of Select Medical from a "hold" rating to a "buy" rating in a research note on Friday, February 21st. Finally, Benchmark upgraded Select Medical from a "hold" rating to a "buy" rating and set a $23.00 target price on the stock in a research note on Monday, February 24th. One research analyst has rated the stock with a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat.com, Select Medical currently has an average rating of "Moderate Buy" and a consensus target price of $26.80.

Select Medical Stock Up 3.1 %

Shares of NYSE:SEM traded up $0.45 on Wednesday, reaching $14.90. The company had a trading volume of 261,674 shares, compared to its average volume of 1,044,848. The stock has a 50-day moving average price of $16.76 and a 200 day moving average price of $21.47. Select Medical Holdings Co. has a twelve month low of $14.03 and a twelve month high of $40.98. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 1.37. The stock has a market capitalization of $1.92 billion, a P/E ratio of 9.02, a P/E/G ratio of 0.64 and a beta of 1.40.

Select Medical (NYSE:SEM - Get Free Report) last posted its quarterly earnings data on Thursday, May 1st. The health services provider reported $0.44 EPS for the quarter, missing analysts' consensus estimates of $0.45 by ($0.01). The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.40 billion. Select Medical had a return on equity of 14.04% and a net margin of 3.23%. The company's revenue for the quarter was down 24.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.75 earnings per share. On average, equities analysts expect that Select Medical Holdings Co. will post 1.17 EPS for the current year.

Select Medical Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, May 29th. Investors of record on Thursday, May 15th will be paid a dividend of $0.0625 per share. This represents a $0.25 annualized dividend and a yield of 1.68%. The ex-dividend date of this dividend is Thursday, May 15th. Select Medical's payout ratio is currently 18.66%.

Select Medical announced that its board has authorized a share 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 buy up to 42.6% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Select Medical

In other news, Director Parvinderjit S. Khanuja acquired 21,000 shares of the stock in a transaction dated Monday, May 5th. The shares were acquired at an average cost of $15.02 per share, for a total transaction of $315,420.00. Following the completion of the transaction, the director now owns 65,089 shares in the company, valued at approximately $977,636.78. This trade represents a 47.63 % increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO David S. Chernow sold 225,000 shares of Select Medical stock in a transaction on Monday, April 28th. The stock was sold at an average price of $18.00, for a total transaction of $4,050,000.00. Following the sale, the chief executive officer now owns 714,516 shares in the company, valued at $12,861,288. This represents a 23.95 % decrease in their position. The disclosure for this sale can be found here. Insiders own 11.60% of the company's stock.

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.