Select Medical (NYSE:SEM) Sees Large Volume Increase – Should You Buy?

Select Medical Holdings Corporation (NYSE:SEM) shares saw an uptick in trading volume on Wednesday . 2,708,775 shares changed hands during mid-day trading, an increase of 58% from the previous session’s volume of 1,711,664 shares.The stock last traded at $16.2650 and had previously closed at $16.26.

Analyst Ratings Changes

SEM has been the subject of several recent analyst reports. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $16.50 price objective (down from $19.00) on shares of Select Medical in a research report on Tuesday, March 3rd. Wall Street Zen cut Select Medical from a “buy” rating to a “hold” rating in a report on Monday, March 9th. Weiss Ratings upgraded shares of Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 20th. Benchmark cut Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday, March 4th. Finally, Zacks Research downgraded shares of Select Medical from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Two investment 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, the company presently has a consensus rating of “Hold” and an average target price of $15.63.

Select Medical Stock Performance

The stock has a market capitalization of $2.02 billion, a P/E ratio of 14.14, a PEG ratio of 0.93 and a beta of 1.22. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.89. The company has a 50-day moving average price of $15.57 and a two-hundred day moving average price of $14.46.

Select Medical (NYSE:SEM) last released 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 return on equity of 7.26% and a net margin of 2.68%.The company had revenue of $1.40 billion during the quarter, compared to analysts’ expectations of $1.36 billion. During the same period in the prior year, the firm earned $0.18 EPS. Select Medical’s quarterly revenue was up 6.4% on a year-over-year basis. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. Equities analysts expect that Select Medical Holdings Corporation will post 1.17 earnings per share for the current year.

Select Medical Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd were 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 was Monday, March 2nd. Select Medical’s dividend payout ratio is currently 21.74%.

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

Institutional Investors Weigh In On Select Medical

Several institutional investors and hedge funds have recently bought and sold shares of the business. 8 Knots Management LLC purchased a new stake in Select Medical in the second quarter worth $26,568,000. Millennium Management LLC boosted its stake in shares of Select Medical by 407.9% during the 3rd quarter. Millennium Management LLC now owns 1,590,339 shares of the health services provider’s stock valued at $20,420,000 after purchasing an additional 1,277,233 shares in the last quarter. Adage Capital Partners GP L.L.C. purchased a new position in shares of Select Medical during the fourth quarter valued at about $17,603,000. Western Standard LLC bought a new position in Select Medical in the third quarter worth about $13,551,000. Finally, Eversept Partners LP bought a new stake in Select Medical during the 4th quarter valued at approximately $13,456,000. Hedge funds and other institutional investors 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.