Select Medical (NYSE:SEM) Sees Large Volume Increase – Should You Buy?

Shares of Select Medical Holdings Co. (NYSE:SEM) saw unusually-high trading volume on Monday . Approximately 2,231,788 shares were traded during mid-day trading, an increase of 249% from the previous session’s volume of 640,316 shares.The stock last traded at $20.92 and had previously closed at $21.11.

Analyst Upgrades and Downgrades

SEM has been the subject of several analyst reports. Royal Bank of Canada raised their price objective on Select Medical from $40.00 to $47.00 and gave the company an “outperform” rating in a research note on Monday, November 4th. Bank of America began coverage on Select Medical in a research note on Tuesday, August 20th. They set a “buy” rating and a $42.00 price target for the company. StockNews.com lowered Select Medical from a “buy” rating to a “hold” rating in a research note on Thursday, November 21st. Finally, Benchmark downgraded Select Medical from a “buy” rating to a “hold” rating in a report on Monday, November 25th.

Select Medical Price Performance

The firm has a fifty day simple moving average of $34.11 and a 200 day simple moving average of $34.71. The company has a market capitalization of $2.72 billion, a PE ratio of 9.86, a P/E/G ratio of 0.94 and a beta of 1.42. The company has a debt-to-equity ratio of 1.37, a quick ratio of 1.13 and a current ratio of 1.13.

Select Medical (NYSE:SEM) last announced its quarterly earnings results on Thursday, October 31st. The health services provider reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.36 by $0.07. Select Medical had a return on equity of 15.99% and a net margin of 3.97%. The business had revenue of $1.76 billion for the quarter, compared to the consensus estimate of $1.74 billion. During the same period last year, the business posted $0.46 EPS. The business’s revenue was up 5.7% compared to the same quarter last year. Equities analysts anticipate that Select Medical Holdings Co. will post 2.16 EPS for the current year.

Select Medical Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, November 26th. Stockholders of record on Wednesday, November 13th were issued a $0.125 dividend. The ex-dividend date was Wednesday, November 13th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 2.38%. Select Medical’s dividend payout ratio is presently 23.36%.

Insider Activity

In other news, Director Marilyn B. Tavenner sold 32,000 shares of the firm’s stock in a transaction 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 completion of the sale, the director now owns 22,000 shares of the company’s stock, valued at $463,980. This trade represents a 59.26 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 19.14% of the company’s stock.

Institutional Trading of Select Medical

A number of institutional investors have recently made changes to their positions in the business. Dimensional Fund Advisors LP boosted its position in shares of Select Medical by 2.2% in the 2nd quarter. Dimensional Fund Advisors LP now owns 4,498,772 shares of the health services provider’s stock worth $157,728,000 after purchasing an additional 95,578 shares in the last quarter. Geode Capital Management LLC lifted its position in Select Medical by 2.0% during the 3rd quarter. Geode Capital Management LLC now owns 2,442,321 shares of the health services provider’s stock worth $85,180,000 after acquiring an additional 46,880 shares during the period. Principal Financial Group Inc. lifted its position in Select Medical by 6.7% during the 3rd quarter. Principal Financial Group Inc. now owns 2,357,823 shares of the health services provider’s stock worth $82,208,000 after acquiring an additional 147,032 shares during the period. Point72 Asset Management L.P. lifted its position in Select Medical by 144.2% during the 3rd quarter. Point72 Asset Management L.P. now owns 2,059,791 shares of the health services provider’s stock worth $71,825,000 after acquiring an additional 1,216,263 shares during the period. Finally, Charles Schwab Investment Management Inc. lifted its position in Select Medical by 1.5% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,646,320 shares of the health services provider’s stock worth $57,407,000 after acquiring an additional 24,439 shares during the period. Institutional investors and hedge funds own 89.48% of the company’s stock.

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.