Select Medical Holdings Corporation (NYSE:SEM) Receives $26.00 Average Price Target from Brokerages

Key Points

• Select Medical Holdings Corporation has received a consensus recommendation of "Moderate Buy" from five analysts, with an average one-year target price of $26.00.
• CEO David S. Chernow sold 225,000 shares of the company for a total of $4.05 million, while a director increased their position by purchasing 21,000 shares.
• Select Medical reported a quarterly earnings miss with $0.44 earnings per share, falling short of the consensus estimate of $0.45, and announced a stock repurchase plan authorizing up to $1 billion in buybacks.

Select Medical Holdings Corporation (NYSE:SEM - Get Free Report) has been assigned an average rating of "Moderate Buy" from the five brokerages that are currently covering the company, Marketbeat reports. One analyst has rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12-month target price among brokers that have covered the stock in the last year is $26.00.

Several equities analysts have recently weighed in on SEM shares. Royal Bank Of Canada cut their target price on Select Medical from $23.00 to $19.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 7th. Mizuho started coverage on Select Medical in a research report on Wednesday, April 16th. They set an "outperform" rating and a $25.00 target price on the stock.

Insider Transactions at Select Medical

In other Select Medical news, Director Parvinderjit S. Khanuja acquired 21,000 shares of the company's stock in a transaction that occurred on Monday, May 5th. The stock was bought at an average price of $15.02 per share, for a total transaction of $315,420.00. Following the acquisition, the director directly owned 65,089 shares in the company, valued at $977,636.78. The trade was a 47.63% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 11.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Select Medical

Hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Select Medical by 61.6% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 2,703 shares of the health services provider's stock worth $45,000 after buying an additional 1,030 shares during the period. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in shares of Select Medical in the 1st quarter worth $60,000. Covestor Ltd lifted its holdings in shares of Select Medical by 33.5% in the 4th quarter. Covestor Ltd now owns 4,955 shares of the health services provider's stock worth $93,000 after buying an additional 1,244 shares during the period. Advisors Asset Management Inc. lifted its holdings in shares of Select Medical by 168.2% in the 1st quarter. Advisors Asset Management Inc. now owns 6,301 shares of the health services provider's stock worth $105,000 after buying an additional 3,952 shares during the period. Finally, GAMMA Investing LLC lifted its holdings in shares of Select Medical by 217.4% in the 1st quarter. GAMMA Investing LLC now owns 6,501 shares of the health services provider's stock worth $109,000 after buying an additional 4,453 shares during the period. 89.48% of the stock is currently owned by hedge funds and other institutional investors.

Select Medical Price Performance

NYSE:SEM traded up $0.15 during trading hours on Friday, reaching $14.30. The stock had a trading volume of 165,568 shares, compared to its average volume of 1,113,143. 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 52 week low of $14.00 and a 52 week high of $40.98. The company has a 50 day moving average price of $14.90 and a two-hundred day moving average price of $16.58. The stock has a market capitalization of $1.84 billion, a PE ratio of 10.67, a PEG ratio of 0.76 and a beta of 1.32.

Select Medical (NYSE:SEM - Get Free Report) last released its quarterly earnings data on Thursday, May 1st. The health services provider reported $0.44 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.45 by ($0.01). Select Medical had a return on equity of 11.04% and a net margin of 2.81%. The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.40 billion. During the same period in the previous year, the firm earned $0.75 EPS. The business's revenue was down 24.4% compared to the same quarter last year. As a group, sell-side analysts anticipate that Select Medical will post 1.17 earnings per share for the current fiscal year.

Select Medical declared that its board has initiated a share buyback plan on Thursday, May 1st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the health services provider to buy up to 42.6% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

Select Medical Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 29th. Investors of record on Thursday, May 15th were issued a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a yield of 1.75%. The ex-dividend date of this dividend was Thursday, May 15th. Select Medical's payout ratio is currently 18.66%.

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.