Select Medical (NYSE:SEM) Sees Unusually-High Trading Volume – Here’s Why

Select Medical Holdings Corporation (NYSE:SEM) saw unusually-high trading volume on Wednesday . Approximately 2,708,775 shares traded hands during mid-day trading, an increase of 58% from the previous session’s volume of 1,711,664 shares.The stock last traded at $16.2650 and had previously closed at $16.26.

Analysts Set New Price Targets

A number of equities analysts recently commented on SEM shares. 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 note on Tuesday, March 3rd. Benchmark cut Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday, March 4th. Zacks Research cut Select Medical from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Weiss Ratings raised Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 20th. Finally, Wall Street Zen lowered shares of Select Medical from a “buy” rating to a “hold” rating in a research note on Monday, March 9th. Two research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $15.63.

Select Medical Trading Up 0.1%

The business has a 50-day moving average of $15.61 and a 200-day moving average of $14.48. The stock has a market capitalization of $2.02 billion, a price-to-earnings ratio of 14.14, a PEG ratio of 0.93 and a beta of 1.22. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.04 and a current ratio of 1.04.

Select Medical (NYSE:SEM) last issued its quarterly earnings data on Thursday, February 19th. The health services provider reported $0.16 earnings per share for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.07). The firm had revenue of $1.40 billion during the quarter, compared to analysts’ expectations of $1.36 billion. Select Medical had a net margin of 2.68% and a return on equity of 7.26%. Select Medical’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.18 EPS. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. As a group, research analysts forecast that Select Medical Holdings Corporation will post 1.17 EPS for the current year.

Select Medical Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 12th. Investors of record on Monday, March 2nd were paid a dividend of $0.0625 per share. The ex-dividend date was Monday, March 2nd. This represents a $0.25 dividend on an annualized basis and a yield of 1.5%. Select Medical’s dividend payout ratio is currently 21.74%.

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of SEM. Quarry LP acquired a new stake in shares of Select Medical during the fourth quarter worth $26,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Select Medical in the 4th quarter worth $28,000. Quantbot Technologies LP acquired a new position in shares of Select Medical during the third quarter worth about $27,000. MAI Capital Management raised its holdings in Select Medical by 48,000.0% during the second quarter. MAI Capital Management now owns 2,405 shares of the health services provider’s stock worth $37,000 after purchasing an additional 2,400 shares in the last quarter. Finally, Hantz Financial Services Inc. boosted its holdings 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 purchasing an additional 1,739 shares in the last quarter. 89.48% of the stock is currently 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.