Select Medical Holdings Corporation (NYSE:SEM) to Issue $0.06 Quarterly Dividend

Key Points

• Select Medical Holdings Corporation has declared a quarterly dividend of $0.06 per share, with an expected yield of 2.0% based on upcoming payments.
• The company's stock has decreased by 15.0%, trading at $12.57 per share, with a twelve-month low of $12.34.
• Select Medical reported $0.32 earnings per share for the last quarter, surpassing estimates and showing a year-over-year revenue increase of 4.5%.

Select Medical Holdings Corporation (NYSE:SEM - Get Free Report) declared a quarterly dividend on Friday, August 1st, Wall Street Journal reports. Stockholders of record on Wednesday, August 13th will be given a dividend of 0.0625 per share by the health services provider on Thursday, August 28th. This represents a c) dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Wednesday, August 13th.

Select Medical has a payout ratio of 19.1% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Select Medical to earn $1.41 per share next year, which means the company should continue to be able to cover its $0.25 annual dividend with an expected future payout ratio of 17.7%.

Select Medical Price Performance

Shares of Select Medical stock traded up $0.05 on Tuesday, hitting $12.02. 603,316 shares of the company traded hands, compared to its average volume of 1,138,055. The firm's 50-day simple moving average is $14.84 and its 200 day simple moving average is $16.44. 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 company has a market cap of $1.55 billion, a P/E ratio of 11.32, a P/E/G ratio of 0.68 and a beta of 1.25. Select Medical has a 12-month low of $11.84 and a 12-month high of $40.98.

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

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Mizuho assumed coverage on Select Medical in a research note on Wednesday, April 16th. They issued an "outperform" rating and a $25.00 target price on the stock. Royal Bank Of Canada dropped their price target on 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, UBS Group dropped their price target on Select Medical from $15.00 to $14.00 and set a "neutral" rating on the stock in a research note on Monday. One equities research analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $24.60.

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.