Select Medical (NYSE:SEM) Sees Strong Trading Volume – Should You Buy?

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

Analysts Set New Price Targets

A number of equities research analysts have weighed in on SEM shares. Benchmark downgraded shares of Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday, March 4th. Weiss Ratings raised shares of Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, February 20th. Royal Bank Of Canada reiterated a “sector perform” rating and set a $16.50 target price (down from $19.00) on shares of Select Medical in a research report on Tuesday, March 3rd. Wall Street Zen lowered 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 note on Thursday, February 26th. Two equities research 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, the stock currently has an average rating of “Hold” and an average target price of $15.63.

Select Medical Price Performance

The company’s 50 day moving average price is $15.50 and its 200 day moving average price is $14.37. 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 company has a market cap of $2.01 billion, a price-to-earnings ratio of 14.13, a P/E/G ratio of 0.93 and a beta of 1.22.

Select Medical (NYSE:SEM) last announced its earnings results on Thursday, February 19th. The health services provider reported $0.16 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.07). The firm had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.36 billion. Select Medical had a return on equity of 7.26% and a net margin of 2.68%.The company’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same quarter last year, the business earned $0.18 EPS. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. On average, equities research analysts predict that Select Medical Holdings Corporation will post 1.17 earnings per share for the current fiscal year.

Select Medical Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd were issued a $0.0625 dividend. This represents a $0.25 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend was Monday, March 2nd. Select Medical’s payout ratio is presently 21.74%.

Select Medical declared that its Board of Directors has approved a stock repurchase program on Thursday, February 19th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the health services provider to repurchase up to 49.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Select Medical

Several institutional investors have recently bought and sold shares of the business. Quarry LP bought a new stake in shares of Select Medical during the fourth quarter worth $26,000. Quantbot Technologies LP bought a new position in shares of Select Medical in the third quarter valued at about $27,000. Caitong International Asset Management Co. Ltd acquired a new position in Select Medical during the 4th quarter worth about $28,000. MAI Capital Management grew its holdings in Select Medical by 48,000.0% during the 2nd quarter. MAI Capital Management now owns 2,405 shares of the health services provider’s stock worth $37,000 after acquiring an additional 2,400 shares during the last quarter. Finally, Hantz Financial Services Inc. increased 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 acquiring an additional 1,739 shares in the last quarter. Institutional investors own 89.48% of the company’s stock.

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.