Select Medical (NYSE:SEM) Sees Strong Trading Volume – Here’s Why

Shares of Select Medical Holdings Corporation (NYSE:SEM) saw unusually-strong trading volume on Wednesday . Approximately 2,687,708 shares traded hands during mid-day 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.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on SEM shares. Weiss Ratings upgraded Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 20th. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $16.50 price target (down from $19.00) on shares of Select Medical in a research note on Tuesday, March 3rd. Benchmark lowered shares of Select Medical from a “buy” rating to a “hold” rating in a research report on Wednesday, March 4th. Wall Street Zen downgraded shares of Select Medical from a “buy” rating to a “hold” rating in a research report on Monday. Finally, Zacks Research cut 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 assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Select Medical currently has a consensus rating of “Hold” and an average target price of $15.63.

Select Medical Trading Down 0.2%

The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.04 and a current ratio of 1.04. The firm has a fifty day moving average price of $15.45 and a 200 day moving average price of $14.34. The company has a market cap of $2.01 billion, a price-to-earnings ratio of 14.12, a P/E/G ratio of 0.93 and a beta of 1.22.

Select Medical (NYSE:SEM) last posted its quarterly earnings results on Thursday, February 19th. The health services provider reported $0.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.07). Select Medical had a return on equity of 7.26% and a net margin of 2.68%.The firm had revenue of $1.40 billion for the quarter, compared to the consensus estimate of $1.36 billion. During the same period last year, the company posted $0.18 earnings per share. The business’s revenue 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. As a group, equities analysts predict that Select Medical Holdings Corporation will post 1.17 EPS for the current fiscal year.

Select Medical Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Monday, March 2nd will be paid a $0.0625 dividend. This represents a $0.25 annualized dividend and a yield of 1.5%. The ex-dividend date is Monday, March 2nd. Select Medical’s dividend payout ratio (DPR) is 21.74%.

Select Medical announced that its board has initiated a share buyback plan on Thursday, February 19th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the health services provider to repurchase up to 49.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Institutional Investors Weigh In On Select Medical

Several hedge funds have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD increased its holdings in shares of Select Medical by 4.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 16,606,269 shares of the health services provider’s stock valued at $246,604,000 after purchasing an additional 684,695 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in Select Medical by 2.6% in the 4th quarter. Dimensional Fund Advisors LP now owns 5,333,595 shares of the health services provider’s stock valued at $79,205,000 after buying an additional 136,252 shares during the last quarter. State Street Corp raised its holdings in Select Medical by 1.3% in the 2nd quarter. State Street Corp now owns 4,253,793 shares of the health services provider’s stock valued at $64,573,000 after acquiring an additional 55,686 shares during the period. Geode Capital Management LLC lifted its position in Select Medical by 2.7% during the second quarter. Geode Capital Management LLC now owns 3,035,186 shares of the health services provider’s stock worth $46,079,000 after acquiring an additional 80,425 shares during the last quarter. Finally, Western Standard LLC lifted its position in Select Medical by 95.6% during the fourth quarter. Western Standard LLC now owns 2,064,021 shares of the health services provider’s stock worth $30,651,000 after acquiring an additional 1,008,664 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.