Select Medical (NYSE:SEM) Hits New 1-Year Low - Time to Sell?

Key Points

• Select Medical Holdings Corporation's shares reached a new 52-week low of $13.20, down from a previous close of $14.79, amidst a trading volume of 183,146 shares.
• The company reported earnings of $0.32 per share for the last quarter, beating estimates, but its revenue of $1.34 billion fell slightly short of expectations.
• Select Medical authorized a $1.00 billion stock repurchase plan, indicating management's belief that its stock is undervalued, and noted that insiders own 11.60% of the company's shares.

Select Medical Holdings Corporation (NYSE:SEM - Get Free Report)'s share price hit a new 52-week low during trading on Friday . The stock traded as low as $13.30 and last traded at $13.20, with a volume of 183146 shares. The stock had previously closed at $14.79.

Analysts Set New Price Targets

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

Select Medical Trading Down 1.7%

The firm has a market cap of $1.51 billion, a P/E ratio of 11.10, a PEG ratio of 0.68 and a beta of 1.25. The company has a 50 day moving average of $14.84 and a 200 day moving average of $16.44. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.15 and a current ratio of 1.15.

Select Medical (NYSE:SEM - Get Free Report) last posted its earnings results 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 return on equity of 8.87% and a net margin of 2.37%. The firm had revenue of $1.34 billion during the quarter, compared to analyst estimates of $1.35 billion. During the same period in the previous year, the company earned $0.60 EPS. The company's revenue for the quarter was up 4.5% on a year-over-year basis. 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 declared a quarterly dividend, which will be paid on Thursday, August 28th. Stockholders of record on Wednesday, August 13th will be issued a dividend of $0.0625 per share. 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 payout ratio is 23.58%.

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

Institutional Trading of Select Medical

Institutional investors and hedge funds have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd increased its position in shares of Select Medical by 61.6% during the first quarter. Caitong International Asset Management Co. Ltd now owns 2,703 shares of the health services provider's stock valued at $45,000 after purchasing an additional 1,030 shares during the period. BI Asset Management Fondsmaeglerselskab A S bought a new stake in Select Medical in the first quarter valued at $60,000. Covestor Ltd grew its position in Select Medical by 33.5% in the fourth quarter. Covestor Ltd now owns 4,955 shares of the health services provider's stock valued at $93,000 after acquiring an additional 1,244 shares during the period. Advisors Asset Management Inc. grew its position in Select Medical by 168.2% in the first quarter. Advisors Asset Management Inc. now owns 6,301 shares of the health services provider's stock valued at $105,000 after acquiring an additional 3,952 shares during the period. Finally, GAMMA Investing LLC grew its position in Select Medical by 217.4% in the first quarter. GAMMA Investing LLC now owns 6,501 shares of the health services provider's stock valued at $109,000 after acquiring an additional 4,453 shares during the period. 89.48% of the stock is currently owned by institutional investors.

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.