Ready to Jump After Recent Trade: Select Medical Holdings Corporation (SEM)

Select Medical Holdings Corporation (NYSE: SEM) stock fell -7.84% on Friday to $27.15 against a previous-day closing price of $29.46. With 1.13 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.78 million shares. During the session, the Medical Care Facilities company that operates in wider Healthcare sector, reached to the highest price of $29.63 whereas the lowest price it dropped to was $26.89. The 52-week range on SEM shows that it touched its highest point at $40.20 and its lowest point at $21.40 during that stretch. It currently has a 1-year price target of $36.20. With its current market cap of 3.47 billion, SEM has annualized dividend of $0.50 while the current yield stands at 1.84%. Beta for the stock currently stands at 1.30.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SEM was down-trending over the past week, with a drop of -7.81%, but this was up by 9.79% over a month. Three-month performance surged to 17.28% while six-month performance rose 18.20%. The stock lost -29.43% in the past year, while it has lost -7.65% so far this year. A look at the trailing 12-month EPS for SEM yields 2.53 with Next year EPS estimates of 2.92. For the next quarter, that number is 0.55. This implies an EPS growth rate of 54.90% for this year and 30.86% for next year. EPS is expected to grow by 16.75% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 27.80%.

Float and Shares Shorts:

At present, 129.01 million SEM shares are outstanding with a float of 107.30 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.7 million, which was 4.36% higher than short shares on Jun 14, 2022. In addition to Mr. Robert A. Ortenzio as the firm’s Co-Founder & Exec. Chairman, Mr. David S. Chernow serves as its Pres & CEO.

Institutional Ownership:

Through their ownership of 85.14% of SEM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.87% of SEM, in contrast to 34.40% held by mutual funds. Shares owned by individuals account for 28.23%. As the largest shareholder in SEM with 17.31% of the stake, T. Rowe Price Associates, Inc. holds 22,615,208 shares worth 22,615,208. A second-largest stockholder of SEM, BlackRock Fund Advisors, holds 16,639,825 shares, controlling over 12.74% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SEM, holding 12,569,380 shares or 9.62% stake. With a 7.66% stake in SEM, the T Rowe Price Mid Cap Value Fund is the largest stakeholder. A total of 10,005,751 shares are owned by the mutual fund manager. The iShares Core S&P Small Cap ETF, which owns about 5.57% of SEM stock, is the second-largest Mutual Fund holder. It holds 7,277,704 shares valued at 171.9 million. T Rowe Price Small Cap Value Fund holds 3.12% of the stake in SEM, owning 4,071,634 shares worth 96.17 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SEM since 5 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SEM analysts setting a high price target of $45.00 and a low target of $27.00, the average target price over the next 12 months is $37.00. Based on these targets, SEM could surge 65.75% to reach the target high and fall by -0.55% to reach the target low. Reaching the average price target will result in a growth of 36.28% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SEM will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $2.37 being high and $2.10 being low. For SEM, this leads to a yearly average estimate of $2.22. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Select Medical Holdings Corporation reported $0.43 EPS against a consensus estimate of $0.43. The surprise factor in the prior quarter was $0.09. Based on analyst estimates, the high estimate for the next quarter is $0.60 and the low estimate is $0.47. The average estimate for the next quarter is thus $0.55.

Summary of Insider Activity:

Insiders traded SEM stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 427,635 while 1,489,115 shares were sold.

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