Parvinderjit S. Khanuja Acquires 21,000 Shares of Select Medical Holdings Co. (NYSE:SEM) Stock

Select Medical Holdings Co. (NYSE:SEM) Director Parvinderjit S. Khanuja purchased 21,000 shares of the stock in a transaction that occurred on Monday, May 5th. The shares were purchased at an average price of $15.02 per share, with a total value of $315,420.00. Following the completion of the acquisition, the director now directly owns 65,089 shares in the company, valued at $977,636.78. The trade was a 47.63 % increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

Select Medical Trading Down 2.0 %

NYSE SEM opened at $14.72 on Friday. The stock’s fifty day moving average price is $16.63 and its 200-day moving average price is $21.30. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 1.37. The stock has a market cap of $1.90 billion, a P/E ratio of 8.92, a P/E/G ratio of 0.64 and a beta of 1.40. Select Medical Holdings Co. has a 12 month low of $14.03 and a 12 month high of $40.98.

Select Medical (NYSE:SEM) last issued its earnings results on Thursday, May 1st. The health services provider reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.45 by ($0.01). The firm had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.40 billion. Select Medical had a return on equity of 14.04% and a net margin of 3.23%. The firm’s quarterly revenue was down 24.4% on a year-over-year basis. During the same period last year, the firm posted $0.75 earnings per share. As a group, equities analysts forecast that Select Medical Holdings Co. will post 1.17 EPS for the current fiscal year.

Select Medical announced that its board has approved a stock repurchase plan on Thursday, May 1st that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the health services provider to purchase up to 42.6% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Select Medical Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 29th. Stockholders of record on Thursday, May 15th will be paid a $0.0625 dividend. This represents a $0.25 annualized dividend and a dividend yield of 1.70%. The ex-dividend date of this dividend is Thursday, May 15th. Select Medical’s dividend payout ratio is currently 18.66%.

Institutional Investors Weigh In On Select Medical

Several large investors have recently bought and sold shares of SEM. Vanguard Group Inc. grew its stake in shares of Select Medical by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 12,712,990 shares of the health services provider’s stock worth $239,640,000 after acquiring an additional 131,228 shares during the period. Dimensional Fund Advisors LP grew its position in Select Medical by 1.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 4,431,469 shares of the health services provider’s stock worth $83,533,000 after purchasing an additional 62,585 shares during the period. Invesco Ltd. lifted its holdings in shares of Select Medical by 48.6% during the 4th quarter. Invesco Ltd. now owns 2,643,943 shares of the health services provider’s stock valued at $49,838,000 after buying an additional 864,852 shares during the period. Principal Financial Group Inc. boosted its stake in shares of Select Medical by 3.1% in the 1st quarter. Principal Financial Group Inc. now owns 2,476,816 shares of the health services provider’s stock worth $41,363,000 after buying an additional 73,308 shares during the last quarter. Finally, Hood River Capital Management LLC increased its position in Select Medical by 404.8% during the fourth quarter. Hood River Capital Management LLC now owns 1,755,733 shares of the health services provider’s stock valued at $33,096,000 after acquiring an additional 1,407,902 shares during the last quarter. 89.48% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several analysts have weighed in on SEM shares. Mizuho started coverage on Select Medical in a research report on Wednesday, April 16th. They set an “outperform” rating and a $25.00 price objective on the stock. Benchmark raised Select Medical from a “hold” rating to a “buy” rating and set a $23.00 price target on the stock in a research note on Monday, February 24th. Royal Bank of Canada lowered their price objective on Select Medical from $23.00 to $19.00 and set an “outperform” rating for the company in a research report on Wednesday. Finally, StockNews.com raised shares of Select Medical from a “hold” rating to a “buy” rating in a research report on Friday, February 21st. One research analyst has rated the stock with a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $26.00.

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.