Select Medical Holdings Secures Moderate Buy Rating with $17.80 Target

Select Medical Holdings Corporation (NYSE:SEM) has garnered an average recommendation of “Moderate Buy” from six brokerages following recent evaluations. According to Marketbeat Ratings, one analyst has issued a sell recommendation, while another has rated the stock as a hold. The remaining four analysts have given buy ratings, leading to an average 12-month target price of $17.80 for the company.

Several investment firms have recently updated their forecasts for Select Medical. On October 8, 2023, the Royal Bank of Canada raised its target price from $16.00 to $20.00, maintaining an “outperform” rating. Conversely, Weiss Ratings reaffirmed a “sell (d+)” rating on the same date. Benchmark issued a “buy” rating on October 27, 2023, while Wall Street Zen upgraded the stock from “hold” to “buy” on November 8, 2023. Mizuho set a price objective of $17.00 on November 3, 2023.

The performance of SEM shares has been noteworthy, opening at $15.37 on November 24, 2023. The company holds a market capitalization of $1.90 billion and exhibits a current ratio of 1.09, a quick ratio of 1.09, and a debt-to-equity ratio of 0.87. Select Medical has experienced a twelve-month low of $11.65 and a high of $20.83. Its price-to-earnings (P/E) ratio stands at 17.87, with a PEG ratio of 0.54 and a beta of 1.26.

Select Medical recently announced its earnings results on October 30, 2023, reporting earnings per share (EPS) of $0.23, surpassing analysts’ consensus estimates of $0.18 by $0.05. The company generated revenue of $1.36 billion for the quarter, exceeding expectations of $1.33 billion. Year-over-year, this marks a revenue increase of 7.2%. Last year, the company posted an EPS of $0.43. Looking ahead, Select Medical has set its fiscal year 2025 guidance at an EPS range of $1.140 to $1.240. Analysts predict an EPS of $1.17 for the current year.

In addition to its positive financial performance, Select Medical recently declared a quarterly dividend of $0.0625 per share, which was paid out on November 25, 2023. Stockholders of record on November 12, 2023 received this dividend, marking a $0.25 annualized dividend with a yield of 1.6%. The company’s current payout ratio is 29.07%.

Select Medical operates primarily in the United States, with its headquarters located in Mechanicsburg, Pennsylvania. The company provides specialized healthcare services through two divisions: the Hospital Division, which includes long-term acute care hospitals and inpatient rehabilitation facilities, and the Outpatient Rehabilitation Division, which offers physical, occupational, and speech therapy services across various clinic locations and home-based care programs. Founded in 1996, Select Medical has expanded through strategic partnerships, joint ventures, and acquisitions, solidifying its position as a leader in the healthcare sector.

As the company continues to navigate the evolving healthcare landscape, its stock performance and dividend announcements will be closely monitored by investors and analysts alike.