Select Medical (NYSE:SEM) Updates 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) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share guidance of 1.090-1.19 for the period, compared to the consensus earnings per share 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.

Analyst Ratings Changes

A number of research analysts have recently issued reports on SEM shares. Mizuho initiated coverage on Select Medical in a report on Wednesday, April 16th. They set an "outperform" rating and a $25.00 price target on the stock. UBS Group dropped their price target on Select Medical from $15.00 to $14.00 and set a "neutral" rating for the company in a research note on Monday. Finally, Royal Bank Of Canada dropped their price target on Select Medical from $23.00 to $19.00 and set an "outperform" rating for the company in a research note on Wednesday, May 7th. One research analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $24.60.

Select Medical Stock Down 3.5%

Shares of NYSE:SEM traded down $0.44 on Monday, reaching $12.13. The company had a trading volume of 444,721 shares, compared to its average volume of 1,126,677. The firm's 50 day simple moving average is $14.84 and its 200-day simple moving average is $16.44. Select Medical has a 52-week low of $11.93 and a 52-week high of $40.98. The firm has a market capitalization of $1.56 billion, a PE ratio of 11.48, a PEG ratio of 0.68 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 announced its earnings results on Thursday, July 31st. The health services provider reported $0.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.04. Select Medical had a return on equity of 8.87% and a net margin of 2.37%. The company had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.35 billion. During the same period in the prior year, the company posted $0.60 EPS. The firm's quarterly revenue was up 4.5% compared to the same quarter last year. As a group, analysts expect that Select Medical will post 1.17 earnings per share for the current fiscal year.

Select Medical Announces Dividend

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

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

Hedge Funds Weigh In On Select Medical

Several large investors have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Select Medical by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 64,400 shares of the health services provider's stock worth $1,075,000 after purchasing an additional 2,809 shares during the last quarter. Royal Bank of Canada lifted its position in Select Medical by 8.5% in the first quarter. Royal Bank of Canada now owns 95,771 shares of the health services provider's stock valued at $1,599,000 after purchasing an additional 7,502 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Select Medical by 3.3% in 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 valued at $5,410,000 after purchasing an additional 10,329 shares during the period. Dynamic Technology Lab Private Ltd acquired a new stake in Select Medical in the first quarter valued at about $220,000. Finally, AQR Capital Management LLC lifted its position in Select Medical by 96.6% in the first quarter. AQR Capital Management LLC now owns 33,894 shares of the health services provider's stock valued at $566,000 after purchasing an additional 16,656 shares during the period. Hedge funds and other 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.