Select Medical (NYSE:SEM) Sees Unusually-High Trading Volume – Time to Buy?

Select Medical Holdings Corporation (NYSE:SEM) shares saw an uptick in trading volume on Thursday . 2,672,986 shares changed hands during mid-day trading, an increase of 51% from the previous session’s volume of 1,767,876 shares.The stock last traded at $16.5450 and had previously closed at $16.52.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on SEM. Wall Street Zen lowered Select Medical from a “buy” rating to a “hold” rating in a research note on Monday, March 9th. Zacks Research raised Select Medical from a “strong sell” rating to a “hold” rating in a research note on Monday, May 4th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Select Medical in a research report on Wednesday. Benchmark lowered Select Medical from a “buy” rating to a “hold” rating in a research report on Wednesday, March 4th. Finally, Mizuho reaffirmed a “neutral” rating and set a $16.50 target price (down from $17.00) on shares of Select Medical in a research report on Tuesday, May 12th. One research analyst has rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $15.50.

Select Medical Price Performance

The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.88. The business has a 50-day moving average price of $16.38 and a two-hundred day moving average price of $15.48. The company has a market capitalization of $2.05 billion, a price-to-earnings ratio of 15.61, a price-to-earnings-growth ratio of 0.95 and a beta of 1.02.

Select Medical (NYSE:SEM) last issued its earnings results on Thursday, April 30th. The health services provider reported $0.36 earnings per share for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.07). The firm had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.41 billion. Select Medical had a return on equity of 6.62% and a net margin of 2.42%.Select Medical’s revenue for the quarter was up 5.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.44 earnings per share. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. As a group, research analysts anticipate that Select Medical Holdings Corporation will post 1.26 EPS for the current year.

Select Medical Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, May 28th. Investors of record on Thursday, May 14th will be given a $0.0625 dividend. This represents a $0.25 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Thursday, May 14th. Select Medical’s dividend payout ratio is presently 23.58%.

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

Institutional Investors Weigh In On Select Medical

A number of institutional investors and hedge funds have recently bought and sold shares of SEM. Quarry LP purchased a new stake in Select Medical in the 4th quarter valued at $26,000. Quantbot Technologies LP purchased a new stake in Select Medical in the 3rd quarter valued at $27,000. Caitong International Asset Management Co. Ltd purchased a new stake in Select Medical in the 4th quarter valued at $28,000. Hantz Financial Services Inc. raised its position in Select Medical by 214.7% in the 4th quarter. Hantz Financial Services Inc. now owns 2,549 shares of the health services provider’s stock valued at $38,000 after buying an additional 1,739 shares during the last quarter. Finally, Smartleaf Asset Management LLC grew its stake in Select Medical by 37.8% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,870 shares of the health services provider’s stock valued at $43,000 after purchasing an additional 788 shares during the period. 89.48% of the stock is owned by hedge funds and other institutional investors.

About Select Medical

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.