Select Medical (NYSE:SEM) Sets New 1-Year Low – Should You Sell?

Select Medical Holdings Co. (NYSE:SEM)’s stock price reached a new 52-week low on Tuesday . The stock traded as low as $20.17 and last traded at $20.83, with a volume of 6602 shares trading hands. The stock had previously closed at $20.84.

Wall Street Analyst Weigh In

SEM has been the topic of a number of recent analyst reports. Bank of America initiated coverage on Select Medical in a report on Tuesday, August 20th. They issued a “buy” rating and a $42.00 price objective on the stock. Benchmark lowered Select Medical from a “buy” rating to a “hold” rating in a research note on Monday. Royal Bank of Canada raised their price objective on Select Medical from $40.00 to $47.00 and gave the stock an “outperform” rating in a research report on Monday, November 4th. Finally, StockNews.com lowered shares of Select Medical from a “buy” rating to a “hold” rating in a research note on Thursday, November 21st. Three research analysts have rated the stock with a hold rating and two have given a buy rating to the company. According to MarketBeat.com, Select Medical has an average rating of “Hold” and a consensus target price of $40.75.

Select Medical Price Performance

The company has a fifty day moving average of $35.26 and a 200-day moving average of $35.09. The stock has a market cap of $2.71 billion, a PE ratio of 18.08, a P/E/G ratio of 1.78 and a beta of 1.42. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 1.37.

Select Medical (NYSE:SEM) last issued its quarterly earnings results on Thursday, October 31st. The health services provider reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.07. The business had revenue of $1.76 billion for the quarter, compared to analysts’ expectations of $1.74 billion. Select Medical had a net margin of 3.97% and a return on equity of 15.99%. The business’s quarterly revenue was up 5.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.46 earnings per share. Sell-side analysts expect that Select Medical Holdings Co. will post 2.16 EPS for the current fiscal year.

Select Medical Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 26th. Stockholders of record on Wednesday, November 13th will be given a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 2.39%. The ex-dividend date of this dividend is Wednesday, November 13th. Select Medical’s dividend payout ratio is currently 23.36%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Hexagon Capital Partners LLC boosted its stake in shares of Select Medical by 528.7% in the 2nd quarter. Hexagon Capital Partners LLC now owns 767 shares of the health services provider’s stock valued at $27,000 after buying an additional 645 shares during the period. Quarry LP purchased a new position in Select Medical in the third quarter worth approximately $30,000. Transcendent Capital Group LLC acquired a new position in Select Medical during the 2nd quarter worth approximately $35,000. Canada Pension Plan Investment Board purchased a new stake in shares of Select Medical in the 2nd quarter valued at approximately $39,000. Finally, DekaBank Deutsche Girozentrale acquired a new stake in shares of Select Medical in the 2nd quarter valued at $60,000. 89.48% of the stock is owned by institutional investors and hedge funds.

About Select Medical

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.