Teacher Retirement System of Texas Acquires Shares of 16,092 Select Medical Holdings Corporation (NYSE:SEM)

Teacher Retirement System of Texas purchased a new stake in Select Medical Holdings Corporation (NYSE:SEM) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 16,092 shares of the health services provider’s stock, valued at approximately $269,000.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Raymond James Financial Inc. acquired a new position in shares of Select Medical during the 4th quarter worth approximately $5,858,000. Swiss National Bank raised its position in shares of Select Medical by 0.7% during the 4th quarter. Swiss National Bank now owns 217,400 shares of the health services provider’s stock valued at $4,098,000 after buying an additional 1,500 shares during the period. Natixis Advisors LLC raised its position in shares of Select Medical by 11.5% during the 4th quarter. Natixis Advisors LLC now owns 28,203 shares of the health services provider’s stock valued at $532,000 after buying an additional 2,904 shares during the period. Cibc World Markets Corp purchased a new stake in shares of Select Medical during the 4th quarter valued at approximately $191,000. Finally, American Century Companies Inc. raised its position in shares of Select Medical by 1,309.5% during the 4th quarter. American Century Companies Inc. now owns 137,169 shares of the health services provider’s stock valued at $2,586,000 after buying an additional 127,437 shares during the period. Hedge funds and other institutional investors own 89.48% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have issued reports on the company. Royal Bank Of Canada cut their target price on Select Medical from $23.00 to $19.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 7th. 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 on the stock. One investment analyst has rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $26.00.

Insider Activity

In related news, CEO David S. Chernow sold 225,000 shares of the stock in a transaction dated Monday, April 28th. The shares were sold at an average price of $18.00, for a total transaction of $4,050,000.00. Following the completion of the transaction, the chief executive officer directly owned 714,516 shares of the company’s stock, valued at $12,861,288. This represents a 23.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Parvinderjit S. Khanuja purchased 21,000 shares of the business’s stock in a transaction that occurred on Monday, May 5th. The shares were purchased at an average cost of $15.02 per share, with a total value of $315,420.00. Following the completion of the acquisition, the director directly owned 65,089 shares of the company’s stock, valued at $977,636.78. This represents a 47.63% increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 11.60% of the company’s stock.

Select Medical Stock Performance

Shares of SEM stock opened at $14.38 on Friday. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.87. The firm has a fifty day moving average price of $14.99 and a 200 day moving average price of $16.77. The company has a market cap of $1.85 billion, a P/E ratio of 10.73, a PEG ratio of 0.76 and a beta of 1.32. Select Medical Holdings Corporation has a 12 month low of $14.03 and a 12 month high of $40.98.

Select Medical (NYSE:SEM) last released its quarterly earnings data on Thursday, May 1st. The health services provider reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.45 by ($0.01). Select Medical had a net margin of 2.81% and a return on equity of 11.04%. The company had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.40 billion. During the same quarter in the prior year, the company earned $0.75 EPS. The business’s revenue was down 24.4% on a year-over-year basis. Sell-side analysts predict that Select Medical Holdings Corporation will post 1.17 earnings per share for the current fiscal year.

Select Medical Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 29th. Stockholders of record on Thursday, May 15th were issued a $0.0625 dividend. The ex-dividend date was Thursday, May 15th. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.74%. Select Medical’s payout ratio is 18.66%.

Select Medical announced that its board has approved a stock repurchase plan on Thursday, May 1st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the health services provider to purchase up to 42.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Select Medical 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.