Select Medical (NYSE:SEM) Sees Unusually-High Trading Volume – Time to Buy?

Shares of Select Medical Holdings Corporation (NYSE:SEM) saw unusually-high trading volume on Wednesday . Approximately 2,687,708 shares were traded during trading, an increase of 109% from the previous session’s volume of 1,288,770 shares.The stock last traded at $16.2350 and had previously closed at $16.26.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Royal Bank Of Canada restated a “sector perform” rating and issued a $16.50 price target (down from $19.00) on shares of Select Medical in a research note on Tuesday, March 3rd. Weiss Ratings raised Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, February 20th. Zacks Research downgraded shares of Select Medical from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 26th. Wall Street Zen lowered shares of Select Medical from a “buy” rating to a “hold” rating in a research report on Monday. Finally, Benchmark downgraded shares of Select Medical from a “buy” rating to a “hold” rating in a report on Wednesday, March 4th. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Select Medical currently has an average rating of “Hold” and a consensus target price of $15.63.

Select Medical Trading Down 0.2%

The stock has a market capitalization of $2.01 billion, a P/E ratio of 14.12, a P/E/G ratio of 0.93 and a beta of 1.22. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.89. The business has a 50-day moving average price of $15.45 and a two-hundred day moving average price of $14.34.

Select Medical (NYSE:SEM) last posted its quarterly earnings results on Thursday, February 19th. The health services provider reported $0.16 EPS for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.07). Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The company had revenue of $1.40 billion during the quarter, compared to analyst estimates of $1.36 billion. During the same period last year, the firm earned $0.18 EPS. The firm’s revenue for the quarter was up 6.4% compared to the same quarter last year. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. On average, analysts expect that Select Medical Holdings Corporation will post 1.17 EPS for the current fiscal year.

Select Medical Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd will be issued a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Monday, March 2nd. Select Medical’s dividend payout ratio is 21.74%.

Select Medical announced that its board has initiated a stock buyback program on Thursday, February 19th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the health services provider to reacquire up to 49.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On Select Medical

Large investors have recently modified their holdings of the business. Quarry LP bought a new position in shares of Select Medical in the 4th quarter valued at $26,000. Quantbot Technologies LP acquired a new stake in Select Medical in the third quarter valued at about $27,000. Caitong International Asset Management Co. Ltd bought a new position in Select Medical in the fourth quarter valued at about $28,000. MAI Capital Management raised its stake in Select Medical by 48,000.0% during the second quarter. MAI Capital Management now owns 2,405 shares of the health services provider’s stock worth $37,000 after acquiring an additional 2,400 shares in the last quarter. Finally, Hantz Financial Services Inc. lifted its holdings in shares of Select Medical by 214.7% in the fourth quarter. Hantz Financial Services Inc. now owns 2,549 shares of the health services provider’s stock worth $38,000 after acquiring an additional 1,739 shares during the last quarter. Institutional investors and hedge funds own 89.48% of the company’s stock.

Select Medical Company Profile

Select Medical is a leading provider of specialized healthcare services in the United States, operating through two primary business segments: Hospital Division and Outpatient Rehabilitation Division. The Hospital Division offers long-term acute care (LTAC) hospitals and inpatient rehabilitation facilities (IRFs) that serve patients recovering from complex illnesses, trauma or surgery. The Outpatient Rehabilitation Division delivers physical, occupational and speech therapy services through a network of clinic locations and home-based care programs.

Headquartered in Mechanicsburg, Pennsylvania, Select Medical was founded in 1996 and has grown through strategic partnerships, joint ventures and acquisitions.