Select Medical (NYSE:SEM) Sets New 52-Week Low on Disappointing Earnings

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

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

Select Medical Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 13th. Shareholders of record on Monday, March 3rd will be paid a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a yield of 1.42%. The ex-dividend date is Monday, March 3rd. Select Medical’s dividend payout ratio (DPR) is currently 23.36%.

Analyst Ratings Changes

Several brokerages have recently commented on SEM. Benchmark lowered Select Medical from a “buy” rating to a “hold” rating in a research note on Monday, November 25th. StockNews.com raised Select Medical from a “hold” rating to a “buy” rating in a research note on Friday. UBS Group decreased their price target on Select Medical from $40.00 to $21.00 and set a “neutral” rating on the stock in a research note on Friday, January 3rd. Finally, Royal Bank of Canada upped their price target on Select Medical from $40.00 to $47.00 and gave the company an “outperform” rating in a research note on Monday, November 4th. Two equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat, Select Medical presently has a consensus rating of “Moderate Buy” and an average target price of $39.50.

Insider Buying and Selling

In related news, VP Robert G. Breighner, Jr. sold 4,989 shares of the stock in a transaction dated Wednesday, December 4th. The stock was sold at an average price of $19.95, for a total transaction of $99,530.55. Following the transaction, the vice president now owns 30,356 shares of the company’s stock, valued at approximately $605,602.20. This represents a 14.12 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Marilyn B. Tavenner sold 32,000 shares of the company’s stock in a transaction dated Tuesday, November 26th. The stock was sold at an average price of $21.09, for a total value of $674,880.00. Following the sale, the director now owns 22,000 shares in the company, valued at approximately $463,980. This trade represents a 59.26 % decrease in their position. The disclosure for this sale can be found here. 19.14% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Select Medical

Several large investors have recently bought and sold shares of SEM. Creative Planning increased its holdings in Select Medical by 10.6% during the 3rd quarter. Creative Planning now owns 17,441 shares of the health services provider’s stock worth $608,000 after purchasing an additional 1,665 shares during the period. Mount Yale Investment Advisors LLC purchased a new stake in Select Medical during the 3rd quarter worth about $193,000. Sippican Capital Advisors increased its holdings in Select Medical by 30.9% during the 3rd quarter. Sippican Capital Advisors now owns 12,442 shares of the health services provider’s stock worth $434,000 after purchasing an additional 2,937 shares during the period. EMC Capital Management increased its holdings in Select Medical by 63.4% during the 3rd quarter. EMC Capital Management now owns 12,536 shares of the health services provider’s stock worth $437,000 after purchasing an additional 4,862 shares during the period. Finally, Principal Financial Group Inc. increased its holdings 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 purchasing an additional 147,032 shares during the period. Hedge funds and other institutional investors own 89.48% of the company’s stock.

Select Medical Trading Down 7.5 %

The company has a market cap of $2.28 billion, a PE ratio of 8.24, a P/E/G ratio of 0.64 and a beta of 1.45. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 1.37. The company has a fifty day simple moving average of $19.13 and a two-hundred day simple moving average 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.