Select Medical (NYSE:SEM) Shares Up 4.8% - Here's Why

Select Medical Holdings Co. (NYSE:SEM - Get Free Report)'s share price traded up 4.8% on Monday . The stock traded as high as $15.13 and last traded at $14.95. 295,218 shares changed hands during mid-day trading, a decline of 65% from the average session volume of 847,236 shares. The stock had previously closed at $14.26.

Wall Street Analyst Weigh In

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

Select Medical Trading Up 4.3 %

The company has a debt-to-equity ratio of 1.37, a quick ratio of 1.13 and a current ratio of 1.13. The company has a market cap of $1.92 billion, a price-to-earnings ratio of 9.01, a price-to-earnings-growth ratio of 0.64 and a beta of 1.38. The company's 50 day moving average price is $16.91 and its 200 day moving average price is $21.65.

Select Medical (NYSE:SEM - Get Free Report) last posted its quarterly earnings results on Thursday, May 1st. The health services provider reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.45 by ($0.01). The company had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.40 billion. Select Medical had a return on equity of 14.04% and a net margin of 3.23%. The business's revenue for the quarter was down 24.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.75 earnings per share. Research analysts anticipate that Select Medical Holdings Co. will post 1.17 EPS for the current year.

Select Medical Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 29th. Shareholders of record on Thursday, May 15th will be given a $0.0625 dividend. The ex-dividend date of this dividend is Thursday, May 15th. This represents a $0.25 annualized dividend and a yield of 1.68%. Select Medical's payout ratio is 15.15%.

Select Medical declared that its board has authorized a stock repurchase program on Thursday, May 1st that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the health services provider to buy up to 42.6% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other news, CEO David S. Chernow sold 225,000 shares of the business's stock in a transaction on Monday, April 28th. The stock was sold at an average price of $18.00, for a total transaction of $4,050,000.00. Following the completion of the sale, the chief executive officer now owns 714,516 shares in the company, valued at $12,861,288. The trade was a 23.95 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 11.60% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. LPL Financial LLC lifted its holdings in Select Medical by 2.0% in the fourth quarter. LPL Financial LLC now owns 31,441 shares of the health services provider's stock valued at $593,000 after buying an additional 619 shares during the period. Vista Finance LLC grew its holdings in shares of Select Medical by 7.0% in the 1st quarter. Vista Finance LLC now owns 10,969 shares of the health services provider's stock valued at $183,000 after buying an additional 716 shares during the period. Net Worth Advisory Group increased its position in shares of Select Medical by 6.4% in the 1st quarter. Net Worth Advisory Group now owns 14,045 shares of the health services provider's stock valued at $235,000 after buying an additional 846 shares in the last quarter. Bank of Montreal Can raised its stake in Select Medical by 4.5% during the 4th quarter. Bank of Montreal Can now owns 20,030 shares of the health services provider's stock worth $378,000 after buying an additional 867 shares during the period. Finally, Sippican Capital Advisors lifted its holdings in shares of Select Medical by 7.3% during the 4th quarter. Sippican Capital Advisors now owns 13,354 shares of the health services provider's stock valued at $252,000 after purchasing an additional 912 shares in the last quarter. 89.48% of the stock is currently 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.

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