Select Medical (NYSE:SEM) Holdings Corporation (SEM) shares soared to a 52-week high, reaching a price level of $40.51. The healthcare services provider has witnessed a remarkable year, with its stock value climbing an impressive 83.71% over the past year. This surge reflects investor confidence in the company's growth prospects and operational performance. Select Medical (TASE:PMCN)'s ascent to this new peak underscores its strong market position and the positive sentiment surrounding its financial health and strategic initiatives.
In other recent news, Select Medical Holdings Corporation reported a robust financial performance in the third quarter of 2024, with a 6% increase in both consolidated revenue and adjusted EBITDA compared to the same period last year. The company also completed an initial public offering (IPO) for Concentra, issuing over 23 million shares while retaining 81.74% ownership. Plans are in place to distribute the remaining interest in Concentra to shareholders by the end of the year, depending on market conditions.
Select Medical's inpatient rehab division saw a 14% revenue increase and a 12% rise in adjusted EBITDA, despite startup losses from new facilities. Additionally, the critical illness recovery division experienced a 3% revenue increase and a 9% rise in adjusted EBITDA. A new 48-bed rehab hospital is also under development in Jacksonville, Florida, with more facilities planned in other states.
The company's outpatient rehab division reported a 7% revenue growth, driven by higher patient volumes and improved net revenue per visit. Earnings per share (EPS) increased to $0.43, up from $0.38 in Q3 2023. The company also declared a cash dividend of $0.125, payable on November 26, 2024.
Select Medical revised its 2024 revenue outlook to a range of $6.95 billion to $7.15 billion, with adjusted EBITDA projected between $865 million and $885 million. Capital expenditures are expected to be between $200 million and $250 million. The company aims to maintain a leverage ratio around 3 times, considering various capital deployment options. These developments highlight Select Medical's continued growth and commitment to shareholder value.
InvestingPro Insights
Select Medical Holdings Corporation's (SEM) recent surge to a 52-week high is supported by several key financial metrics and market indicators. According to InvestingPro data, the company's stock has delivered a robust 82.46% total return over the past year, aligning closely with the article's reported 83.71% increase. This exceptional performance is further emphasized by the stock's current price, which stands at 96.96% of its 52-week high.
InvestingPro Tips highlight that SEM is trading near its 52-week high and has shown significant returns over various time frames, including the last week, month, and three months. These trends reinforce the article's narrative of strong investor confidence and positive market sentiment.
The company's financial health appears solid, with a P/E ratio of 18.31 and a market capitalization of $5.16 billion. An InvestingPro Tip suggests that SEM is trading at a low P/E ratio relative to its near-term earnings growth, potentially indicating an attractive valuation for investors.
For readers seeking more comprehensive analysis, InvestingPro offers 11 additional tips for SEM, providing a deeper understanding of the company's financial position and market dynamics.
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