Brokerages Set Select Medical Holdings Corporation (NYSE:SEM) Target Price at $26.00

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 earned a consensus rating of "Moderate Buy" from the five brokerages that are presently covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a hold rating and four have given a buy rating to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $26.00.

SEM has been the subject of a number of analyst reports. Royal Bank Of Canada reduced their target price on shares of Select Medical from $23.00 to $19.00 and set an "outperform" rating for the company in a research note on Wednesday, May 7th. Mizuho initiated coverage on shares of Select Medical in a research note on Wednesday, April 16th. They issued an "outperform" rating and a $25.00 target price for the company.

Insider Transactions at Select Medical

In other news, Director Parvinderjit S. Khanuja bought 21,000 shares of Select Medical stock in a transaction dated Monday, May 5th. The shares were bought at an average price of $15.02 per share, for a total transaction of $315,420.00. Following the purchase, the director owned 65,089 shares of the company's stock, valued at approximately $977,636.78. This trade represents a 47.63% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 11.60% of the stock is owned by company insiders.

Institutional Trading of Select Medical

Several institutional investors and hedge funds have recently added to or reduced their stakes in SEM. Natixis Advisors LLC increased its stake in shares of Select Medical by 11.5% in the 4th quarter. Natixis Advisors LLC now owns 28,203 shares of the health services provider's stock valued at $532,000 after acquiring an additional 2,904 shares during the last quarter. Cibc World Markets Corp bought a new stake in Select Medical during the 4th quarter worth approximately $191,000. American Century Companies Inc. increased its stake in Select Medical by 1,309.5% during the 4th quarter. American Century Companies Inc. now owns 137,169 shares of the health services provider's stock worth $2,586,000 after purchasing an additional 127,437 shares in the last quarter. KLP Kapitalforvaltning AS bought a new stake in Select Medical during the 4th quarter worth approximately $454,000. Finally, LPL Financial LLC increased its stake in Select Medical by 2.0% during the 4th quarter. LPL Financial LLC now owns 31,441 shares of the health services provider's stock worth $593,000 after purchasing an additional 619 shares in the last quarter. 89.48% of the stock is owned by institutional investors.

Select Medical Stock Down 0.7%

Shares of SEM stock traded down $0.11 during trading on Friday, hitting $14.16. 408,114 shares of the company were exchanged, compared to its average volume of 1,117,433. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.16 and a current ratio of 1.16. The firm has a market capitalization of $1.82 billion, a price-to-earnings ratio of 10.56, a P/E/G ratio of 0.76 and a beta of 1.32. The business's 50-day simple moving average is $14.92 and its 200 day simple moving average is $16.61. Select Medical has a twelve month low of $14.00 and a twelve month high of $40.98.

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

Select Medical Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 29th. Shareholders of record on Thursday, May 15th were issued a $0.0625 dividend. This represents a $0.25 annualized dividend and a yield of 1.77%. The ex-dividend date of this dividend was Thursday, May 15th. Select Medical's dividend payout ratio (DPR) is presently 18.66%.

Select Medical announced that its Board of Directors has initiated a stock 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 reacquire up to 42.6% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors 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.