StockNews.com Downgrades Select Medical (NYSE:SEM) to Hold

StockNews.com cut shares of Select Medical (NYSE:SEM) from a buy rating to a hold rating in a report published on Thursday.

SEM has been the subject of several other reports. Benchmark reaffirmed a “buy” rating and set a $48.00 target price on shares of Select Medical in a research note on Friday, November 1st. Royal Bank of Canada upped their price objective on shares of Select Medical from $40.00 to $47.00 and gave the stock an “outperform” rating in a research report on Monday, November 4th. Finally, Bank of America assumed coverage on shares of Select Medical in a research report on Tuesday, August 20th. They issued a “buy” rating and a $42.00 target price on the stock. Two equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $40.75.

Select Medical Price Performance

Shares of NYSE SEM opened at $39.67 on Thursday. The company has a debt-to-equity ratio of 1.37, a current ratio of 1.13 and a quick ratio of 1.13. The firm’s 50 day simple moving average is $35.19 and its 200-day simple moving average is $35.03. Select Medical has a 12 month low of $22.26 and a 12 month high of $40.98. The stock has a market capitalization of $5.14 billion, a price-to-earnings ratio of 18.54, a PEG ratio of 1.75 and a beta of 1.42.

Select Medical (NYSE:SEM) last released its quarterly earnings data on Thursday, October 31st. The health services provider reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates of $0.36 by $0.07. Select Medical had a net margin of 3.97% and a return on equity of 15.99%. The company had revenue of $1.76 billion during the quarter, compared to analysts’ expectations of $1.74 billion. During the same quarter in the previous year, the company earned $0.46 earnings per share. The firm’s revenue for the quarter was up 5.7% on a year-over-year basis. Analysts expect that Select Medical will post 2.16 EPS for the current year.

Select Medical Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 26th. Stockholders of record on Wednesday, November 13th will be issued a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.26%. The ex-dividend date of this dividend is Wednesday, November 13th. Select Medical’s payout ratio is 23.36%.

Institutional Trading of Select Medical

Hedge funds and other institutional investors have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD increased its position in shares of Select Medical by 0.5% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 17,202,219 shares of the health services provider’s stock worth $518,647,000 after purchasing an additional 90,604 shares during the last quarter. Vanguard Group Inc. increased its position in shares of Select Medical by 5.3% during the first quarter. Vanguard Group Inc. now owns 12,997,891 shares of the health services provider’s stock valued at $391,886,000 after acquiring an additional 650,093 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Select Medical by 2.2% in the 2nd quarter. Dimensional Fund Advisors LP now owns 4,498,772 shares of the health services provider’s stock valued at $157,728,000 after acquiring an additional 95,578 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Select Medical by 2.0% in the 3rd quarter. Geode Capital Management LLC now owns 2,442,321 shares of the health services provider’s stock worth $85,180,000 after acquiring an additional 46,880 shares during the last quarter. Finally, Principal Financial Group Inc. boosted its position in shares of Select Medical by 6.7% during the 3rd quarter. Principal Financial Group Inc. now owns 2,357,823 shares of the health services provider’s stock worth $82,208,000 after purchasing an additional 147,032 shares during the period. 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.