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

Key Points

• Select Medical Holdings Corporation's stock reached a new 52-week low of $14.00, with a last trading price of $14.09, signaling a potential decline in market confidence.
• Despite recent performance, several analysts maintain a positive outlook, with a consensus price target of $26.00 and five buy ratings among analysts.
• The company reported a 24.4% decline in revenue year-over-year, alongside earnings that missed estimates, reflecting ongoing challenges in the health services sector.
• Select Medical's board approved a stock repurchase plan allowing the company to buy back $1 billion in shares, indicating belief in the stock's undervaluation.

Select Medical Holdings Corporation (NYSE:SEM - Get Free Report)'s stock price hit a new 52-week low during trading on Friday . The company traded as low as $14.00 and last traded at $14.09, with a volume of 21820 shares. The stock had previously closed at $14.14.

Analyst Upgrades and Downgrades

SEM has been the topic of several recent research 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 on the stock in a report on Wednesday, May 7th. Mizuho initiated coverage on shares of Select Medical in a report on Wednesday, April 16th. They set an "outperform" rating and a $25.00 target price on the stock. One investment analyst has rated the stock with a hold rating and five have assigned a buy rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $26.00.

Select Medical Price Performance

The firm's 50-day moving average is $14.92 and its 200-day moving average is $16.61. The company has a debt-to-equity ratio of 0.87, a current ratio of 1.16 and a quick ratio of 1.16. The company has a market capitalization of $1.82 billion, a P/E ratio of 10.56, a price-to-earnings-growth ratio of 0.76 and a beta of 1.32.

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

Select Medical Dividend Announcement

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

Select Medical declared that its board has approved a stock 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 reacquire up to 42.6% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling 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 acquired at an average price of $15.02 per share, with a total value of $315,420.00. Following the completion of the purchase, the director owned 65,089 shares in the company, valued at $977,636.78. The trade was a 47.63% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 11.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Allianz Asset Management GmbH increased its position in Select Medical by 6.0% during the 2nd quarter. Allianz Asset Management GmbH now owns 61,200 shares of the health services provider's stock valued at $929,000 after purchasing an additional 3,468 shares during the period. Sivik Global Healthcare LLC boosted its holdings in shares of Select Medical by 50.0% in the 2nd quarter. Sivik Global Healthcare LLC now owns 300,000 shares of the health services provider's stock valued at $4,554,000 after buying an additional 100,000 shares in the last quarter. Inspire Investing LLC boosted its holdings in shares of Select Medical by 24.3% in the 2nd quarter. Inspire Investing LLC now owns 25,585 shares of the health services provider's stock valued at $388,000 after buying an additional 5,008 shares in the last quarter. Brucke Financial Inc. boosted its holdings in shares of Select Medical by 7.0% in the 2nd quarter. Brucke Financial Inc. now owns 13,638 shares of the health services provider's stock valued at $207,000 after buying an additional 898 shares in the last quarter. Finally, KLP Kapitalforvaltning AS boosted its holdings in shares of Select Medical by 15.9% in the 2nd quarter. KLP Kapitalforvaltning AS now owns 24,000 shares of the health services provider's stock valued at $364,000 after buying an additional 3,300 shares in the last quarter. Hedge funds and other institutional investors own 89.48% of the company's stock.

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.