Royal Bank of Canada Increases Select Medical (NYSE:SEM) Price Target to $40.00

Select Medical (NYSE:SEM) had its target price upped by equities researchers at Royal Bank of Canada from $36.00 to $40.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage currently has an “outperform” rating on the health services provider’s stock. Royal Bank of Canada’s price objective would suggest a potential upside of 22.17% from the company’s current price.

SEM has been the topic of a number of other research reports. Benchmark reaffirmed a “buy” rating and issued a $39.00 price objective on shares of Select Medical in a research report on Friday, May 3rd. StockNews.com raised Select Medical from a “hold” rating to a “buy” rating in a research report on Friday, March 22nd. Two equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $34.80.

Select Medical Price Performance

NYSE SEM opened at $32.74 on Monday. The firm’s 50 day moving average price is $28.60 and its 200-day moving average price is $26.07. The company has a debt-to-equity ratio of 2.30, a quick ratio of 1.22 and a current ratio of 1.22. The company has a market cap of $4.26 billion, a PE ratio of 15.59, a P/E/G ratio of 1.24 and a beta of 1.38. Select Medical has a 52-week low of $21.28 and a 52-week high of $33.51.

Select Medical (NYSE:SEM) last announced its quarterly earnings results on Friday, February 23rd. The health services provider reported $0.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.05. Select Medical had a return on equity of 18.11% and a net margin of 3.97%. The business had revenue of $1.66 billion for the quarter, compared to the consensus estimate of $1.64 billion. During the same period last year, the business posted $0.22 EPS. The business’s revenue was up 4.9% compared to the same quarter last year. Sell-side analysts forecast that Select Medical will post 2.03 EPS for the current fiscal year.

Insider Transactions at Select Medical

In other Select Medical news, Chairman Robert A. Ortenzio sold 50,000 shares of the business’s stock in a transaction dated Monday, April 8th. The stock was sold at an average price of $29.90, for a total transaction of $1,495,000.00. Following the sale, the chairman now owns 6,689,668 shares in the company, valued at approximately $200,021,073.20. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 17.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in SEM. Vanguard Group Inc. boosted its holdings in Select Medical by 2.9% in the fourth quarter. Vanguard Group Inc. now owns 12,347,798 shares of the health services provider’s stock valued at $290,173,000 after purchasing an additional 342,496 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Select Medical by 1.1% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,431,681 shares of the health services provider’s stock worth $104,147,000 after buying an additional 48,300 shares during the last quarter. Principal Financial Group Inc. grew its holdings in Select Medical by 4.5% during the first quarter. Principal Financial Group Inc. now owns 2,241,823 shares of the health services provider’s stock worth $67,591,000 after acquiring an additional 95,707 shares during the period. Victory Capital Management Inc. raised its position in Select Medical by 15.7% during the fourth quarter. Victory Capital Management Inc. now owns 1,739,361 shares of the health services provider’s stock valued at $40,875,000 after acquiring an additional 235,964 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its holdings in Select Medical by 5.8% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,467,109 shares of the health services provider’s stock valued at $34,477,000 after acquiring an additional 79,907 shares during the period. Hedge funds and other institutional investors own 89.48% 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.