Select Medical (NYSE:SEM) Reaches New 1-Year Low on Disappointing Earnings

Shares of Select Medical Holdings Co. (NYSE:SEM) reached a new 52-week low during mid-day trading on Friday following a dissappointing earnings announcement. The stock traded as low as $17.11 and last traded at $16.92, with a volume of 132016 shares. The stock had previously closed at $19.06.

The health services provider reported $0.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.29 by ($0.11). The firm had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.50 billion. Select Medical had a return on equity of 15.99% and a net margin of 3.97%.

Analyst Ratings Changes

Several equities research analysts have commented on SEM shares. UBS Group dropped their price target on shares of Select Medical from $40.00 to $21.00 and set a “neutral” rating on the stock in a research note on Friday, January 3rd. StockNews.com raised Select Medical from a “hold” rating to a “buy” rating in a research note on Friday. Royal Bank of Canada upped 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. Finally, Benchmark cut Select Medical from a “buy” rating to a “hold” rating in a research note on Monday, November 25th. Two research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $39.50.

Insiders Place Their Bets

In related news, VP Robert G. Breighner, Jr. sold 4,989 shares of the business’s stock in a transaction that occurred 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 transaction, the vice president now directly owns 30,356 shares in the company, valued at approximately $605,602.20. The trade was a 14.12 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Marilyn B. Tavenner sold 32,000 shares of Select Medical stock in a transaction dated Tuesday, November 26th. The shares were 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 directly owns 22,000 shares in the company, valued at $463,980. This represents a 59.26 % decrease in their position. The disclosure for this sale can be found here. Company insiders own 19.14% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in SEM. Creative Planning grew its stake in shares of Select Medical by 10.6% during the third quarter. Creative Planning now owns 17,441 shares of the health services provider’s stock worth $608,000 after buying an additional 1,665 shares during the last quarter. Romano Brothers AND Company raised its holdings in shares of Select Medical by 3.7% in the 3rd quarter. Romano Brothers AND Company now owns 76,100 shares of the health services provider’s stock worth $2,654,000 after acquiring an additional 2,700 shares during the last quarter. Argent Capital Management LLC boosted its holdings in Select Medical by 28.3% during the 3rd quarter. Argent Capital Management LLC now owns 30,673 shares of the health services provider’s stock worth $1,070,000 after acquiring an additional 6,758 shares during the last quarter. Mount Yale Investment Advisors LLC bought a new stake in Select Medical in the 3rd quarter worth about $193,000. Finally, Sippican Capital Advisors increased its position in shares of Select Medical by 30.9% during the third quarter. Sippican Capital Advisors now owns 12,442 shares of the health services provider’s stock valued at $434,000 after acquiring an additional 2,937 shares during the last quarter. 89.48% of the stock is owned by institutional investors.

Select Medical Stock Down 14.0 %

The company has a debt-to-equity ratio of 1.37, a quick ratio of 1.13 and a current ratio of 1.13. The company has a market capitalization of $2.12 billion, a P/E ratio of 7.63, a PEG ratio of 0.64 and a beta of 1.45. The stock has a 50 day moving average price of $19.13 and a 200 day moving average price of $28.07.

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.