UBS Group Has Lowered Expectations for Select Medical (NYSE:SEM) Stock Price

Select Medical (NYSE:SEM) had its price target cut by UBS Group from $40.00 to $21.00 in a report published on Friday,Benzinga reports. They currently have a neutral rating on the health services provider’s stock.

A number of other equities research analysts also recently weighed in on SEM. Benchmark downgraded shares of Select Medical from a “buy” rating to a “hold” rating in a report on Monday, November 25th. Royal Bank of Canada increased their target price on shares of Select Medical from $40.00 to $47.00 and gave the company an “outperform” rating in a research note on Monday, November 4th. Finally, StockNews.com lowered shares of Select Medical from a “buy” rating to a “hold” rating in a research report on Monday, December 30th. Three analysts have rated the stock with a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $39.50.

Select Medical Price Performance

NYSE SEM opened at $18.40 on Friday. Select Medical has a 12 month low of $18.02 and a 12 month high of $40.98. The firm has a market capitalization of $2.38 billion, a PE ratio of 8.60, a P/E/G ratio of 0.39 and a beta of 1.43. The company’s 50 day simple moving average is $26.91 and its 200 day simple moving average is $32.20. The company has a debt-to-equity ratio of 1.37, a current ratio of 1.13 and a quick ratio of 1.13.

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, beating the consensus estimate of $0.36 by $0.07. The company had revenue of $1.76 billion for the quarter, compared to analysts’ expectations of $1.74 billion. Select Medical had a return on equity of 15.99% and a net margin of 3.97%. The firm’s revenue for the quarter was up 5.7% on a year-over-year basis. During the same period last year, the firm earned $0.46 EPS. As a group, equities research analysts forecast that Select Medical will post 1.97 EPS for the current fiscal year.

Select Medical Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, November 26th. Stockholders of record on Wednesday, November 13th were given a $0.125 dividend. This represents a $0.50 annualized dividend and a dividend yield of 2.72%. The ex-dividend date of this dividend was Wednesday, November 13th. Select Medical’s dividend payout ratio (DPR) is currently 23.36%.

Insider Activity

In related news, VP Robert G. Breighner, Jr. sold 4,989 shares of the company’s stock in a transaction on 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 directly owns 30,356 shares of the company’s stock, valued at approximately $605,602.20. The trade was a 14.12 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Marilyn B. Tavenner sold 32,000 shares of the 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 completion of the sale, the director now directly owns 22,000 shares of the company’s stock, valued at approximately $463,980. This represents a 59.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 19.14% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Kingsview Wealth Management LLC acquired a new stake in shares of Select Medical during the 3rd quarter valued at $1,927,000. Dynamic Technology Lab Private Ltd acquired a new stake in Select Medical during the third quarter valued at $1,592,000. Hood River Capital Management LLC purchased a new position in Select Medical in the second quarter valued at about $14,819,000. Geode Capital Management LLC increased its position in Select Medical by 2.0% in the 3rd quarter. Geode Capital Management LLC now owns 2,442,321 shares of the health services provider’s stock worth $85,180,000 after purchasing an additional 46,880 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Select Medical during the 3rd quarter worth about $1,320,000. 89.48% of the stock is owned by hedge funds and other institutional investors.

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.