Select Medical (NYSE:SEM) Shares Gap Up - What's Next?

Select Medical Holdings Co. (NYSE:SEM - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $16.58, but opened at $17.00. Select Medical shares last traded at $17.54, with a volume of 148,965 shares.

Analyst Upgrades and Downgrades

SEM has been the subject of a number of research reports. Royal Bank of Canada cut their target price on shares of Select Medical from $47.00 to $23.00 and set an "outperform" rating for the company in a research note on Monday, February 24th. Mizuho assumed coverage on shares of Select Medical in a research report on Wednesday, April 16th. They set an "outperform" rating and a $25.00 price objective for the company. StockNews.com upgraded Select Medical from a "hold" rating to a "buy" rating in a research note on Friday, February 21st. Benchmark raised shares of Select Medical from a "hold" rating to a "buy" rating and set a $23.00 target price for the company in a research report on Monday, February 24th. Finally, UBS Group dropped their price target on shares of Select Medical from $40.00 to $21.00 and set a "neutral" rating on the stock in a research report on Friday, January 3rd. One equities research analyst has rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $26.80.

Select Medical Stock Performance

The firm's 50-day moving average is $17.00 and its two-hundred day moving average is $22.10. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 1.37. The stock has a market cap of $2.36 billion, a price-to-earnings ratio of 11.07, a P/E/G ratio of 0.64 and a beta of 1.38.

Select Medical (NYSE:SEM - Get Free Report) last announced its earnings results on Thursday, February 20th. The health services provider reported $0.18 earnings per share for the quarter, missing the consensus estimate of $0.29 by ($0.11). The business had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.50 billion. Select Medical had a return on equity of 14.04% and a net margin of 3.23%. As a group, sell-side analysts expect that Select Medical Holdings Co. will post 1.17 earnings per share for the current year.

Select Medical Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 13th. Shareholders of record on Monday, March 3rd were issued a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a yield of 1.37%. The ex-dividend date was Monday, March 3rd. Select Medical's dividend payout ratio (DPR) is presently 15.15%.

Insider Buying and Selling

In related news, CEO David S. Chernow sold 225,000 shares of the stock in a transaction dated Monday, April 28th. The stock was sold at an average price of $18.00, for a total value of $4,050,000.00. Following the completion of the transaction, the chief executive officer now owns 714,516 shares of the company's stock, valued at approximately $12,861,288. This represents a 23.95 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 11.60% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Norges Bank acquired a new stake in shares of Select Medical during the fourth quarter worth $29,556,000. The Manufacturers Life Insurance Company raised its holdings in shares of Select Medical by 2,552.7% during the 4th quarter. The Manufacturers Life Insurance Company now owns 1,596,414 shares of the health services provider's stock valued at $30,092,000 after purchasing an additional 1,536,234 shares in the last quarter. Hood River Capital Management LLC raised its position in shares of Select Medical by 404.8% in the fourth quarter. Hood River Capital Management LLC now owns 1,755,733 shares of the health services provider's stock valued at $33,096,000 after purchasing an additional 1,407,902 shares during the period. Invesco Ltd. grew its position in Select Medical by 48.6% in the 4th quarter. Invesco Ltd. now owns 2,643,943 shares of the health services provider's stock worth $49,838,000 after purchasing an additional 864,852 shares during the last quarter. Finally, Bridgeway Capital Management LLC bought a new stake in Select Medical in the fourth quarter valued at about $14,074,000. 89.48% of the stock is owned by institutional investors and hedge funds.

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.