Select Medical (NYSE:SEM) Hits New 52-Week Low - Here's What Happened

Key Points

• Select Medical's stock reached a new 52-week low at $11.65 during trading on Thursday, with a last recorded price of $11.96 and significant trading volume of over 1.5 million shares.
• Despite the drop in stock price, analysts provide a Moderate Buy rating on Select Medical with an average target price of $24.60, indicating potential recovery.
• The company recently declared a dividend of $0.0625 per share, reflecting a 2.1% yield and maintaining a payout ratio of 23.58%.

Select Medical Holdings Corporation (NYSE:SEM - Get Free Report) hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $11.65 and last traded at $11.96, with a volume of 1504150 shares trading hands. The stock had previously closed at $11.77.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on SEM. UBS Group reduced their target price on shares of Select Medical from $15.00 to $14.00 and set a "neutral" rating on the stock in a research note on Monday. Mizuho began 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 on the stock. Finally, Royal Bank Of Canada reduced their target price on shares of Select Medical from $23.00 to $19.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 7th. One investment analyst has rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $24.60.

Select Medical Stock Up 1.6%

The firm's 50 day moving average is $14.68 and its two-hundred day moving average is $16.33. The firm has a market cap of $1.48 billion, a P/E ratio of 11.28, a price-to-earnings-growth ratio of 0.63 and a beta of 1.25. 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 (NYSE:SEM - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The health services provider reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.04. Select Medical had a net margin of 2.37% and a return on equity of 8.87%. The business had revenue of $1.34 billion for 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% compared to the same quarter last year. As a group, research analysts anticipate that Select Medical Holdings Corporation will post 1.17 EPS for the current fiscal year.

Select Medical Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Shareholders of record on Wednesday, August 13th will be paid a $0.0625 dividend. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a $0.25 dividend on an annualized basis and a yield of 2.1%. Select Medical's payout ratio is presently 23.58%.

Select Medical declared that its Board of Directors has authorized a share buyback plan on Thursday, May 1st that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the health services provider to buy up to 42.6% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its stock is undervalued.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of SEM. The Manufacturers Life Insurance Company lifted its stake in Select Medical by 2,552.7% in the fourth quarter. The Manufacturers Life Insurance Company now owns 1,596,414 shares of the health services provider's stock valued at $30,092,000 after buying an additional 1,536,234 shares in the last quarter. Hood River Capital Management LLC raised its holdings in shares of Select Medical by 404.8% in the fourth quarter. Hood River Capital Management LLC now owns 1,755,733 shares of the health services provider's stock valued at $33,096,000 after purchasing an additional 1,407,902 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Select Medical by 48.6% in the fourth quarter. Invesco Ltd. now owns 2,643,943 shares of the health services provider's stock valued at $49,838,000 after purchasing an additional 864,852 shares during the last quarter. Bridgeway Capital Management LLC acquired a new stake in shares of Select Medical in the fourth quarter valued at approximately $14,074,000. Finally, Nuveen LLC acquired a new stake in shares of Select Medical in the first quarter valued at approximately $12,133,000. Institutional investors own 89.48% of the company's stock.

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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