Select Medical (NYSE:SEM) Shares Gap Up – Time to Buy?

Select Medical Holdings Co. (NYSE:SEM)’s share price gapped up prior to trading on Monday . The stock had previously closed at $17.68, but opened at $18.19. Select Medical shares last traded at $18.38, with a volume of 257,777 shares changing hands.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Royal Bank of Canada decreased their target price on shares of Select Medical from $47.00 to $23.00 and set an “outperform” rating on the stock in a research report on Monday. UBS Group reduced their price target on shares of Select Medical from $40.00 to $21.00 and set a “neutral” rating on the stock in a research report on Friday, January 3rd. StockNews.com upgraded Select Medical from a “hold” rating to a “buy” rating in a research report on Friday, February 21st. Finally, Benchmark upgraded Select Medical from a “hold” rating to a “buy” rating and set a $23.00 target price for the company in a research note on Monday. One analyst has rated the stock with a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $27.25.

Select Medical Trading Up 2.6 %

The business has a 50-day moving average price of $19.07 and a two-hundred day moving average price of $27.81. The company has a market cap of $2.45 billion, a P/E ratio of 11.62, a P/E/G ratio of 0.64 and a beta of 1.45. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 1.37.

Select Medical (NYSE:SEM) last released its earnings results on Thursday, February 20th. The health services provider reported $0.18 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.29 by ($0.11). Select Medical had a net margin of 3.23% and a return on equity of 14.04%. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.50 billion. On average, analysts predict that Select Medical Holdings Co. will post 1.17 EPS for the current year.

Select Medical Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 13th. Shareholders of record on Monday, March 3rd will be issued a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a yield of 1.32%. The ex-dividend date is Monday, March 3rd. Select Medical’s dividend payout ratio is presently 15.15%.

Insider Activity

In related news, VP Robert G. Breighner, Jr. sold 4,989 shares of the stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $19.95, for a total value of $99,530.55. Following the sale, the vice president now directly owns 30,356 shares in the company, valued at $605,602.20. This trade represents a 14.12 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 17.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Select Medical

Several hedge funds have recently bought and sold shares of the company. Mackenzie Financial Corp increased its holdings in shares of Select Medical by 726.3% in the fourth quarter. Mackenzie Financial Corp now owns 66,497 shares of the health services provider’s stock worth $1,253,000 after acquiring an additional 58,449 shares in the last quarter. Neo Ivy Capital Management increased its stake in Select Medical by 342,890.0% during the 4th quarter. Neo Ivy Capital Management now owns 34,299 shares of the health services provider’s stock worth $646,000 after purchasing an additional 34,289 shares in the last quarter. PharVision Advisers LLC bought a new position in Select Medical in the fourth quarter valued at approximately $685,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Select Medical by 18.6% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 313,639 shares of the health services provider’s stock worth $5,912,000 after purchasing an additional 49,281 shares during the period. Finally, Squarepoint Ops LLC boosted its position in Select Medical by 460.3% during the 4th quarter. Squarepoint Ops LLC now owns 242,756 shares of the health services provider’s stock worth $4,576,000 after acquiring an additional 199,429 shares during 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.