Brokerages Set Select Medical Holdings Corporation (NYSE:SEM) Target Price at $24.60

Key Points

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Shares of Select Medical Holdings Corporation (NYSE:SEM - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the four brokerages that are presently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a hold rating and three have given a buy rating to the company. The average 12 month price target among analysts that have covered the stock in the last year is $20.25.

A number of brokerages recently commented on SEM. UBS Group reissued a "neutral" rating and issued a $14.00 price target (down previously from $15.00) on shares of Select Medical in a report on Monday, August 4th. Royal Bank Of Canada reduced their target price on Select Medical from $23.00 to $19.00 and set an "outperform" rating on the stock in a report on Wednesday, May 7th.

Select Medical Price Performance

Shares of NYSE:SEM traded up $0.4150 on Tuesday, hitting $13.4050. The company had a trading volume of 985,317 shares, compared to its average volume of 1,267,498. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.92. Select Medical has a 52-week low of $11.65 and a 52-week high of $40.98. The business has a 50 day moving average of $14.04 and a 200 day moving average of $15.71. The company has a market cap of $1.66 billion, a PE ratio of 12.65, a PEG ratio of 0.71 and a beta of 1.25.

Select Medical (NYSE:SEM - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The health services provider reported $0.32 EPS for the quarter, topping the consensus estimate of $0.28 by $0.04. The company had revenue of $1.34 billion during the quarter, compared to analyst estimates of $1.35 billion. Select Medical had a return on equity of 8.87% and a net margin of 2.37%.The firm's revenue was up 4.5% on a year-over-year basis. During the same period in the prior year, the firm posted $0.60 earnings per share. Select Medical has set its FY 2025 guidance at 1.090-1.19 EPS. As a group, equities analysts anticipate that Select Medical will post 1.17 earnings per share for the current fiscal year.

Select Medical announced that its board has approved a stock repurchase 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 repurchase up to 42.6% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

Select Medical Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 28th. Investors of record on Wednesday, August 13th will be given a $0.0625 dividend. This represents a $0.25 annualized dividend and a yield of 1.9%. The ex-dividend date is Wednesday, August 13th. Select Medical's dividend payout ratio (DPR) is currently 23.58%.

Hedge Funds Weigh In On Select Medical

Several hedge funds have recently modified their holdings of the company. LPL Financial LLC boosted its position in shares of Select Medical by 2.0% in the fourth quarter. LPL Financial LLC now owns 31,441 shares of the health services provider's stock worth $593,000 after buying an additional 619 shares during the period. Envestnet Asset Management Inc. raised its holdings in Select Medical by 6.3% during the fourth quarter. Envestnet Asset Management Inc. now owns 366,033 shares of the health services provider's stock valued at $6,900,000 after buying an additional 21,771 shares in the last quarter. Bank of Montreal Can raised its holdings in Select Medical by 4.5% during the fourth quarter. Bank of Montreal Can now owns 20,030 shares of the health services provider's stock valued at $378,000 after buying an additional 867 shares in the last quarter. Raymond James Financial Inc. bought a new position in Select Medical during the fourth quarter valued at about $5,858,000. Finally, Sterling Capital Management LLC raised its holdings in Select Medical by 9.5% during the fourth quarter. Sterling Capital Management LLC now owns 11,304 shares of the health services provider's stock valued at $213,000 after buying an additional 978 shares in the last quarter. 89.48% of the stock is currently owned by institutional investors and hedge funds.

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.