Select Medical (NYSE:SEM) Given New $19.00 Price Target at Royal Bank of Canada

Select Medical (NYSE:SEM) had its target price decreased by research analysts at Royal Bank of Canada from $23.00 to $19.00 in a report released on Wednesday,Benzinga reports. The firm presently has an “outperform” rating on the health services provider’s stock. Royal Bank of Canada’s price objective indicates a potential upside of 29.09% from the company’s previous close.

A number of other brokerages have also recently issued reports on SEM. Mizuho assumed coverage on Select Medical in a research report on Wednesday, April 16th. They issued an “outperform” rating and a $25.00 target price for the company. Benchmark upgraded shares of Select Medical from a “hold” rating to a “buy” rating and set a $23.00 target price on the stock in a research report on Monday, February 24th. Finally, StockNews.com upgraded shares of Select Medical from a “hold” rating to a “buy” rating in a research report on Friday, February 21st. One equities research analyst has rated the stock with a hold rating and five have assigned a buy rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $26.00.

Select Medical Stock Performance

Shares of Select Medical stock opened at $14.72 on Wednesday. The firm has a market capitalization of $1.90 billion, a P/E ratio of 8.92, a P/E/G ratio of 0.64 and a beta of 1.40. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 1.37. Select Medical has a 52 week low of $14.03 and a 52 week high of $40.98. The firm’s 50 day moving average is $16.63 and its two-hundred day moving average is $21.30.

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

Select Medical declared that its board has authorized a share 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 repurchase up to 42.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity at Select Medical

In related news, CEO David S. Chernow sold 225,000 shares of Select Medical stock in a transaction that occurred on Monday, April 28th. The stock was sold at an average price of $18.00, for a total value of $4,050,000.00. Following the sale, the chief executive officer now directly owns 714,516 shares in the company, valued at $12,861,288. The trade was a 23.95 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Parvinderjit S. Khanuja acquired 21,000 shares of the business’s stock in a transaction on Monday, May 5th. The stock was acquired at an average price of $15.02 per share, with a total value of $315,420.00. Following the transaction, the director now directly owns 65,089 shares of the company’s stock, valued at $977,636.78. This represents a 47.63 % increase in their position. The disclosure for this purchase can be found here. 11.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Select Medical

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Smartleaf Asset Management LLC boosted its holdings in Select Medical by 179.0% during the fourth quarter. Smartleaf Asset Management LLC now owns 2,296 shares of the health services provider’s stock worth $43,000 after buying an additional 1,473 shares in the last quarter. Wilmington Savings Fund Society FSB acquired a new stake in shares of Select Medical in the 3rd quarter worth approximately $81,000. Covestor Ltd increased its stake in Select Medical by 33.5% in the 4th quarter. Covestor Ltd now owns 4,955 shares of the health services provider’s stock valued at $93,000 after purchasing an additional 1,244 shares in the last quarter. GAMMA Investing LLC boosted its position in Select Medical by 217.4% during the first quarter. GAMMA Investing LLC now owns 6,501 shares of the health services provider’s stock worth $109,000 after purchasing an additional 4,453 shares in the last quarter. Finally, Lazard Asset Management LLC grew its holdings in Select Medical by 47.8% in the fourth quarter. Lazard Asset Management LLC now owns 6,974 shares of the health services provider’s stock valued at $130,000 after purchasing an additional 2,255 shares during the last quarter. 89.48% of the stock is owned by institutional investors and hedge funds.

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.