Select Medical (NYSE:SEM) Shares Down 4.2% on Analyst Downgrade

Key Points

• Select Medical Holdings Corporation shares fell 4.2% after UBS Group reduced its price target from $15.00 to $14.00, maintaining a neutral rating.
• The company reported a quarterly EPS of $0.32, exceeding analyst expectations, though revenue was slightly below projections at $1.34 billion.
• Select Medical recently announced a dividend of $0.0625 per share and initiated a share buyback plan authorizing up to $1.00 billion in purchases.

Select Medical Holdings Corporation (NYSE:SEM - Get Free Report) shares traded down 4.2% during mid-day trading on Monday after UBS Group lowered their price target on the stock from $15.00 to $14.00. UBS Group currently has a neutral rating on the stock. Select Medical traded as low as $12.02 and last traded at $12.05. 153,504 shares traded hands during trading, a decline of 86% from the average session volume of 1,125,312 shares. The stock had previously closed at $12.57.

Several other research firms have also recently commented on SEM. Royal Bank Of Canada reduced their target price 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. Mizuho assumed coverage on Select Medical in a research note on Wednesday, April 16th. They set an "outperform" rating and a $25.00 target price for the company. One 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 currently has a consensus rating of "Moderate Buy" and an average price target of $24.60.

Institutional Inflows and Outflows

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

Select Medical Trading Up 0.5%

The business has a fifty day moving average of $14.73 and a 200-day moving average of $16.36. The stock has a market capitalization of $1.47 billion, a price-to-earnings ratio of 11.18, a price-to-earnings-growth ratio of 0.65 and a beta of 1.25. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.15 and a quick ratio of 1.15.

Select Medical (NYSE:SEM - Get Free Report) last released its earnings results on Thursday, July 31st. The health services provider reported $0.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.28 by $0.04. The firm had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.35 billion. Select Medical had a return on equity of 8.87% and a net margin of 2.37%. Select Medical's revenue was up 4.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.60 earnings per share. On average, equities analysts anticipate that Select Medical Holdings Corporation 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. Investors 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 (DPR) is 23.58%.

Select Medical declared that its board has authorized a share buyback plan 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 plans are often a sign that the company's leadership believes its stock is undervalued.

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.