Select Medical Holdings Corporation Declares Quarterly Dividend of $0.06 (NYSE:SEM)

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) announced 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 2.0%. The ex-dividend date is Wednesday, August 13th.

Select Medical has a payout ratio of 19.1% meaning 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 Stock Down 15.0%

Shares of SEM stock traded down $2.22 during trading hours on Friday, reaching $12.57. The company had a trading volume of 2,860,610 shares, compared to its average volume of 1,132,221. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.16 and a current ratio of 1.16. Select Medical has a twelve month low of $12.34 and a twelve month high of $40.98. The company has a market capitalization of $1.62 billion, a P/E ratio of 9.38, a price-to-earnings-growth ratio of 0.77 and a beta of 1.32. The stock's fifty day simple moving average is $14.88 and its 200 day simple moving average is $16.52.

Select Medical (NYSE:SEM - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The health services provider reported $0.32 earnings per share for the quarter, beating analysts' consensus estimates of $0.28 by $0.04. Select Medical had a return on equity of 11.04% and a net margin of 2.81%. The firm had revenue of $1.34 billion during the quarter, compared to analyst estimates of $1.35 billion. During the same quarter last year, the firm earned $0.60 EPS. Select Medical's quarterly revenue was up 4.5% on a year-over-year basis. As a group, sell-side analysts expect that Select Medical will post 1.17 earnings per share for the current fiscal year.

Select Medical declared that its board has approved a share repurchase program on Thursday, May 1st that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the health services provider to buy up to 42.6% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

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.

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