Select Medical (NYSE:SEM) Reaches New 12-Month Low After Earnings Miss

Shares of Select Medical Holdings Co. (NYSE:SEM - Get Free Report) hit a new 52-week low on Friday following a weaker than expected earnings announcement. The stock traded as low as $17.11 and last traded at $16.92, with a volume of 132016 shares traded. The stock had previously closed at $19.06.

The health services provider reported $0.18 earnings per share for the quarter, missing the consensus estimate of $0.29 by ($0.11). Select Medical had a net margin of 3.23% and a return on equity of 14.04%. The firm had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.50 billion.

Select Medical Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 13th. Investors of record on Monday, March 3rd will be issued a dividend of $0.0625 per share. The ex-dividend date is Monday, March 3rd. This represents a $0.25 annualized dividend and a dividend yield of 1.31%. Select Medical's dividend payout ratio (DPR) is presently 30.30%.

Analyst Ratings Changes

SEM has been the topic of several analyst reports. UBS Group cut their price target on Select Medical from $40.00 to $21.00 and set a "neutral" rating on the stock in a research report on Friday, January 3rd. StockNews.com upgraded Select Medical from a "hold" rating to a "buy" rating in a research report on Friday. Benchmark upgraded Select Medical from a "hold" rating to a "buy" rating and set a $23.00 price objective on the stock in a research report on Monday. Finally, Royal Bank of Canada cut their target price on shares of Select Medical from $47.00 to $23.00 and set an "outperform" rating for the company in a report on Monday. One investment analyst has rated the stock with a hold rating and four have assigned a buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $27.25.

Insiders Place Their Bets

In other news, VP Robert G. Breighner, Jr. sold 4,989 shares of the stock in a transaction that occurred 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 owns 30,356 shares in the company, valued at $605,602.20. This trade represents a 14.12 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 19.14% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Select Medical

A number of large investors have recently added to or reduced their stakes in the stock. Norges Bank purchased a new stake in shares of Select Medical during the fourth quarter worth about $29,556,000. The Manufacturers Life Insurance Company increased its stake in Select Medical by 2,552.7% during the 4th quarter. The Manufacturers Life Insurance Company now owns 1,596,414 shares of the health services provider's stock worth $30,092,000 after buying an additional 1,536,234 shares in the last quarter. Hood River Capital Management LLC raised its holdings in shares of Select Medical by 404.8% during the fourth quarter. Hood River Capital Management LLC now owns 1,755,733 shares of the health services provider's stock valued at $33,096,000 after acquiring an additional 1,407,902 shares during the last quarter. Point72 Asset Management L.P. lifted its position in shares of Select Medical by 144.2% in the third quarter. Point72 Asset Management L.P. now owns 2,059,791 shares of the health services provider's stock valued at $71,825,000 after acquiring an additional 1,216,263 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in shares of Select Medical by 48.6% in the fourth quarter. Invesco Ltd. now owns 2,643,943 shares of the health services provider's stock worth $49,838,000 after acquiring an additional 864,852 shares during the last quarter. 89.48% of the stock is currently owned by institutional investors and hedge funds.

Select Medical Price Performance

The company has a 50-day moving average of $19.07 and a 200 day moving average of $27.81. 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 stock has a market capitalization of $2.48 billion, a PE ratio of 11.61, a PEG ratio of 0.64 and a beta of 1.45.

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.