Select Medical (NYSE:SEM) Updates FY 2025 Earnings Guidance

Select Medical (NYSE:SEM - Get Free Report) issued an update on its FY 2025 earnings guidance on Friday morning. The company provided earnings per share (EPS) guidance of 1.090-1.190 for the period, compared to the consensus estimate of 1.420. The company issued revenue guidance of $5.3 billion-$5.5 billion, compared to the consensus revenue estimate of $5.5 billion.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on SEM shares. Benchmark raised shares of Select Medical from a "hold" rating to a "buy" rating and set a $23.00 target price on the stock in a report on Monday, February 24th. Mizuho assumed coverage on Select Medical in a research report on Wednesday, April 16th. They issued an "outperform" rating and a $25.00 price target on the stock. Royal Bank of Canada decreased their price target on Select Medical from $23.00 to $19.00 and set an "outperform" rating for the company in a report on Wednesday. Finally, StockNews.com raised shares of Select Medical from a "hold" rating to a "buy" rating in a report on Friday, February 21st. One research analyst has rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $26.00.

Select Medical Trading Up 4.0 %

Shares of SEM stock traded up $0.58 during mid-day trading on Wednesday, hitting $15.03. 778,257 shares of the company's stock were exchanged, compared to its average volume of 865,348. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 1.37. The stock has a market cap of $1.94 billion, a price-to-earnings ratio of 9.11, a PEG ratio of 0.64 and a beta of 1.40. The stock has a 50-day simple moving average of $16.76 and a two-hundred day simple moving average of $21.47. Select Medical has a fifty-two week low of $14.03 and a fifty-two week high of $40.98.

Select Medical (NYSE:SEM - Get Free Report) last announced its quarterly earnings results on Thursday, May 1st. The health services provider reported $0.44 earnings per share for the quarter, missing analysts' consensus estimates of $0.45 by ($0.01). Select Medical had a net margin of 3.23% and a return on equity of 14.04%. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.40 billion. During the same period last year, the firm earned $0.75 earnings per share. The company's quarterly revenue was down 24.4% on a year-over-year basis. Equities analysts expect that Select Medical will post 1.17 EPS for the current fiscal year.

Select Medical Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, May 29th. Stockholders of record on Thursday, May 15th will be paid a dividend of $0.0625 per share. The ex-dividend date is Thursday, May 15th. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.66%. Select Medical's dividend payout ratio is currently 18.66%.

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

Insider Activity at Select Medical

In other news, Director Parvinderjit S. Khanuja acquired 21,000 shares of the company's stock in a transaction that occurred on Monday, May 5th. The shares were acquired at an average price of $15.02 per share, with a total value of $315,420.00. Following the acquisition, the director now directly owns 65,089 shares in the company, valued at approximately $977,636.78. The trade was a 47.63 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO David S. Chernow sold 225,000 shares of Select Medical stock in a transaction on Monday, April 28th. The shares were sold at an average price of $18.00, for a total value of $4,050,000.00. Following the sale, the chief executive officer now directly owns 714,516 shares in the company, valued at $12,861,288. The trade was a 23.95 % decrease in their position. The disclosure for this sale can be found here. 11.60% of the stock is currently owned by company insiders.

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.