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

Key Points

• Select Medical issued FY 2025 earnings guidance with EPS expected between **$1.090 and $1.19**, while revenue is anticipated to be **$5.3 billion to $5.5 billion**.
• The company has authorized a **$1 billion share buyback program**, indicating management's belief that the stock is undervalued.
• Analysts currently rate Select Medical as a **"Moderate Buy"**, with an average target price of **$26.00**.

Select Medical (NYSE:SEM - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 1.090-1.19 for the period, compared to the consensus estimate of 1.103. The company issued revenue guidance of $5.3 billion-$5.5 billion, compared to the consensus revenue estimate of $5.4 billion.

Select Medical Stock Performance

SEM traded up $0.37 on Thursday, reaching $14.85. The stock had a trading volume of 1,634,910 shares, compared to its average volume of 1,120,217. The company has a market cap of $1.91 billion, a P/E ratio of 11.08, a price-to-earnings-growth ratio of 0.76 and a beta of 1.32. The business's 50-day moving average price is $14.87 and its two-hundred day moving average price is $16.55. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.87. Select Medical has a 12-month low of $14.00 and a 12-month high of $40.98.

Select Medical (NYSE:SEM - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The health services provider reported $0.32 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.08. Select Medical had a net margin of 2.81% and a return on equity of 11.04%. Sell-side analysts forecast that Select Medical will post 1.17 earnings per share for the current year.

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

Analysts Set New Price Targets

Several equities research analysts have issued reports on SEM shares. Mizuho started coverage on shares of Select Medical in a research note on Wednesday, April 16th. They set an "outperform" rating and a $25.00 price target on the stock. Royal Bank Of Canada cut their price objective 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. One investment analyst has rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $26.00.

Insider Buying and Selling

In other news, Director Parvinderjit S. Khanuja acquired 21,000 shares of the firm's stock in a transaction on Monday, May 5th. The shares were purchased at an average cost of $15.02 per share, with a total value of $315,420.00. Following the acquisition, the director directly owned 65,089 shares in the company, valued at $977,636.78. This represents a 47.63% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 11.60% of the company's stock.

Institutional Trading of Select Medical

Institutional investors and hedge funds have recently modified their holdings of the business. Jane Street Group LLC bought a new position in Select Medical in the first quarter valued at about $4,635,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Select Medical by 3.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 323,968 shares of the health services provider's stock worth $5,410,000 after acquiring an additional 10,329 shares during the last quarter. Goldman Sachs Group Inc. raised its position in shares of Select Medical by 25.3% during the first quarter. Goldman Sachs Group Inc. now owns 728,689 shares of the health services provider's stock worth $12,169,000 after acquiring an additional 147,183 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Select Medical in the first quarter worth approximately $220,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Select Medical by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 64,400 shares of the health services provider's stock worth $1,075,000 after buying an additional 2,809 shares in the last quarter. 89.48% of the stock is currently owned by institutional investors.

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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