How Does Select Medical Holdings Corp (SEM) Stack Up Against Its Industry Peers?

BofA Securities has recently resumed Select Medical Holdings Corp (SEM) stock to Buy rating, as announced on August 20, 2024, according to Finviz. Earlier, on May 13, 2021, The Benchmark Company had reiterated the stock to Buy, setting a price target of $44. for SEM stock. BofA Securities also raised Buy rating with a price target of $36. Additionally, BofA/Merrill reduced Underperform rating on June 16, 2020, with a target price of $15. Deutsche Bank analysts, in their report published on September 17, 2019, also initiated Buy rating for Select Medical Holdings Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.

Select Medical Holdings Corp (SEM) Stock Trading Recap

On Tuesday, Select Medical Holdings Corp (SEM) stock saw a decline, ending the day at $35.27 which represents a decrease of $-0.80 or -2.22% from the prior close of $36.07. The stock opened at $35.69 and touched a low of $35.06 during the day, reaching a high of $36.22. The volume of shares traded was 0.50 million falling short of the average volume of 0.70 million.


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SEM Stock Performance and Moving Averages

In recent trading, Select Medical Holdings Corp (SEM) stock price has shown some volatility, fluctuating -1.34% over the last five trades and 3.19% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 28.63%, and it has gained 2.95% in the previous three months. Currently, SEM is trading at 4.31%, -1.31%, and 17.81% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, SEM, a Healthcare sector stock, is trading -12.91% below its 52-week high but remains 65.74% above its 52-week low. The Average True Range (ATR) (14 days) of 1.03 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

Select Medical Holdings Corp’s Profitability and Valuation Ratios

Select Medical Holdings Corp’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 8.63% and a profit margin of 3.77%, with a gross margin of 28.63%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, Select Medical Holdings Corp’s market capitalization stands at $4.59 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 16.87, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 17.71. Additionally, the Price-to-Sales Ratio is 0.67, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 3.24, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 21.12% of Select Medical Holdings Corp (SEM)’s shares, while financial institutions hold 77.87%.

Notable insider trades include ORTENZIO ROBERT A, EXECUTIVE CHAIRMAN at Select Medical Holdings Corp (SEM), who sold 50000 shares on Apr 08 ’24, at $29.9 each, totaling $1.50 million. On Mar 08 ’24, ORTENZIO ROBERT A, EXECUTIVE CHAIRMAN, sold 50000 shares for $28.3 each, amounting to $1.42 million. Additionally, on Feb 08 ’24, ORTENZIO ROBERT A sold 50000 shares at $26 each, generating $1.30 million.

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