Select Medical Holdings Corp (NYSE:SEM) has reached a new 52-week high, with its shares trading at $39.74. This milestone reflects the company's consistent performance and positive investor sentiment. Over the past year, Select Medical Holdings Corp has seen a significant increase in its stock value, with a 1-year change of 24.7%. This growth underscores the company's robust financial health and its ability to deliver value to its shareholders. The new 52-week high serves as an affirmation of the company's strong market position and its potential for future growth.
In other recent news, Select Medical Holdings Corporation has been making significant strides, with Benchmark and RBC Capital raising their share price targets following a robust first-quarter performance. The adjusted EBITDA and revenue saw a year-over-year increase of 22% and 7% respectively, with a significant contribution from the company's Critical Illness Recovery hospitals.
Concurrently, Select Medical's subsidiary, Concentra Group Holdings Parent, Inc., is preparing for its initial public offering (IPO) with a price range set between $23.00 to $26.00 per share. The IPO involves 22.5 million shares being offered, with Select Medical retaining the majority stake post-IPO. Benchmark's new price target for Select Medical is based on the lower end of Concentra's proposed IPO price range.
Further, Concentra has launched a $750 million senior notes offering, a move that is part of a broader plan to separate Concentra from Select Medical. The proceeds will be used for corporate expenses and to pay a dividend to Select Medical Corporation.
These developments have been met with optimism by analysts from Benchmark and RBC Capital, leading to raised price targets. Benchmark increased its target to $42, while RBC Capital raised its target to $40, both maintaining their respective Buy and Outperform ratings. These assessments reflect a positive outlook on Select Medical's market valuation and future prospects.
InvestingPro Insights
Select Medical Holdings Corp (SEM) has not only hit a new 52-week high but also exhibits a strong return over the last three months, with a price total return of 42.44%. This impressive performance is echoed in the 1-month price total return of 12.57%, indicating a robust short-term growth which aligns with the positive investor sentiment highlighted by the recent 52-week high. Additionally, the company's P/E ratio stands at a reasonable 18.55, suggesting a balanced valuation relative to near-term earnings growth.
InvestingPro Tips indicate that while some analysts have revised their earnings downwards for the upcoming period, the stock is still trading at a low PEG ratio of 0.4, hinting at potential undervaluation relative to its earnings growth. Moreover, SEM's strong historical performance is further evidenced by a significant 1-year change in stock value. For investors looking to delve deeper into SEM's financials and stock performance, there are additional InvestingPro Tips available, which can be accessed through InvestingPro's comprehensive analytics platform. Remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking even more insights to inform your investment decisions.
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