Hsbc Holdings PLC Grows Position in Select Medical Holdings Co. (NYSE:SEM)

Hsbc Holdings PLC lifted its stake in shares of Select Medical Holdings Co. (NYSE:SEM) by 270.1% in the 4th quarter, HoldingsChannel reports. The institutional investor owned 92,305 shares of the health services provider’s stock after purchasing an additional 67,362 shares during the quarter. Hsbc Holdings PLC’s holdings in Select Medical were worth $1,751,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. lifted its position in Select Medical by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 12,712,990 shares of the health services provider’s stock worth $239,640,000 after acquiring an additional 131,228 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of Select Medical by 1.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,431,469 shares of the health services provider’s stock worth $83,533,000 after purchasing an additional 62,585 shares during the last quarter. Invesco Ltd. lifted its holdings in shares of Select Medical by 48.6% during the fourth quarter. Invesco Ltd. now owns 2,643,943 shares of the health services provider’s stock worth $49,838,000 after purchasing an additional 864,852 shares during the period. Principal Financial Group Inc. increased its holdings in Select Medical by 1.9% in the 4th quarter. Principal Financial Group Inc. now owns 2,403,508 shares of the health services provider’s stock worth $45,310,000 after buying an additional 45,685 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its position in Select Medical by 0.6% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,656,320 shares of the health services provider’s stock worth $31,222,000 after buying an additional 10,000 shares during the last quarter. 89.48% of the stock is owned by hedge funds and other institutional investors.

Select Medical Trading Down 0.2 %

SEM stock opened at $18.20 on Friday. Select Medical Holdings Co. has a 52-week low of $14.99 and a 52-week high of $40.98. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 1.37. The firm has a market cap of $2.35 billion, a P/E ratio of 11.03, a PEG ratio of 0.64 and a beta of 1.38. The company’s 50-day simple moving average is $17.01 and its 200-day simple moving average is $21.96.

Select Medical (NYSE:SEM) last issued its quarterly earnings results on Thursday, May 1st. The health services provider reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.01). The business had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.40 billion. Select Medical had a return on equity of 14.04% and a net margin of 3.23%. The business’s revenue for the quarter was down 24.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.75 EPS. As a group, equities analysts forecast that Select Medical Holdings Co. will post 1.17 EPS for the current fiscal year.

Select Medical Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 29th. Shareholders of record on Thursday, May 15th will be given a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a yield of 1.37%. Select Medical’s dividend payout ratio is presently 15.15%.

Select Medical declared that its board has authorized a stock repurchase plan on Thursday, May 1st that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the health services provider to buy up to 42.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on SEM. UBS Group cut their price objective on shares of Select Medical from $40.00 to $21.00 and set a “neutral” rating on the stock in a research note on Friday, January 3rd. Benchmark raised Select Medical from a “hold” rating to a “buy” rating and set a $23.00 price target on the stock in a research report on Monday, February 24th. Mizuho started coverage on Select Medical in a report on Wednesday, April 16th. They issued an “outperform” rating and a $25.00 price objective for the company. Royal Bank of Canada dropped their target price on Select Medical from $47.00 to $23.00 and set an “outperform” rating on the stock in a report on Monday, February 24th. Finally, StockNews.com raised Select Medical from a “hold” rating to a “buy” rating in a report on Friday, February 21st. One analyst has rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat.com, Select Medical currently has a consensus rating of “Moderate Buy” and an average target price of $26.80.

Insider Buying and Selling at Select Medical

In related news, CEO David S. Chernow sold 225,000 shares of the firm’s stock in a transaction dated Monday, April 28th. The shares were sold at an average price of $18.00, for a total value of $4,050,000.00. Following the transaction, the chief executive officer now directly owns 714,516 shares of the company’s stock, valued at approximately $12,861,288. This trade represents a 23.95 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 11.60% of the company’s stock.

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.