Select Medical (NYSE:SEM) Upgraded to “Buy” at StockNews.com

StockNews.com upgraded shares of Select Medical (NYSE:SEM) from a hold rating to a buy rating in a research report sent to investors on Tuesday.

Several other brokerages have also recently issued reports on SEM. Royal Bank of Canada boosted their price target on shares of Select Medical from $40.00 to $47.00 and gave the company an “outperform” rating in a research report on Monday, November 4th. UBS Group lowered their target price on Select Medical from $40.00 to $21.00 and set a “neutral” rating for the company in a research note on Friday, January 3rd. Finally, Benchmark cut Select Medical from a “buy” rating to a “hold” rating in a research note on Monday, November 25th. Two analysts have rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $39.50.

Select Medical Trading Up 0.6 %

SEM opened at $18.75 on Tuesday. Select Medical has a one year low of $18.02 and a one year high of $40.98. 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 business has a 50 day simple moving average of $26.06 and a two-hundred day simple moving average of $31.88. The firm has a market capitalization of $2.43 billion, a price-to-earnings ratio of 8.76, a PEG ratio of 0.39 and a beta of 1.45.

Select Medical (NYSE:SEM) last announced its earnings results on Thursday, October 31st. The health services provider reported $0.43 EPS for the quarter, beating analysts’ consensus estimates of $0.36 by $0.07. The company had revenue of $1.76 billion during the quarter, compared to the consensus estimate of $1.74 billion. Select Medical had a return on equity of 15.99% and a net margin of 3.97%. The firm’s revenue for the quarter was up 5.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.46 earnings per share. Analysts predict that Select Medical will post 1.97 EPS for the current year.

Select Medical Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, November 26th. Stockholders of record on Wednesday, November 13th were given a $0.125 dividend. The ex-dividend date of this dividend was Wednesday, November 13th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 2.67%. Select Medical’s dividend payout ratio is currently 23.36%.

Insider Activity at Select Medical

In related news, Director Marilyn B. Tavenner sold 32,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 26th. The stock was sold at an average price of $21.09, for a total value of $674,880.00. Following the transaction, the director now directly owns 22,000 shares of the company’s stock, valued at approximately $463,980. This represents a 59.26 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Robert G. Breighner, Jr. sold 4,989 shares of Select Medical stock in a transaction on Wednesday, December 4th. The stock was sold at an average price of $19.95, for a total value of $99,530.55. Following the completion of the sale, the vice president now directly owns 30,356 shares of the company’s stock, valued at approximately $605,602.20. The trade was a 14.12 % decrease in their position. The disclosure for this sale can be found here. 19.14% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Select Medical

Several institutional investors have recently modified their holdings of SEM. Quarry LP purchased a new position in Select Medical in the 3rd quarter worth about $30,000. Canada Pension Plan Investment Board purchased a new position in shares of Select Medical during the second quarter valued at approximately $39,000. DekaBank Deutsche Girozentrale purchased a new stake in Select Medical in the second quarter worth approximately $60,000. GAMMA Investing LLC grew its position in Select Medical by 16.6% in the 3rd quarter. GAMMA Investing LLC now owns 2,313 shares of the health services provider’s stock worth $81,000 after purchasing an additional 330 shares during the period. Finally, Wilmington Savings Fund Society FSB purchased a new stake in Select Medical during the 3rd quarter valued at $81,000. 89.48% of the stock is owned by hedge funds and other institutional investors.

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.