In a recent transaction, Robert A. Ortenzio, the Executive Chairman of Select Medical Holdings Corp (NYSE:SEM), sold a significant number of shares in the company. The transaction involved the sale of 50,000 shares of common stock at an average price of $29.9 per share, resulting in a total value of $1.5 million.
The shares were sold on April 8, 2024, and the sale was conducted under a pre-arranged 10b5-1 trading plan that Ortenzio had adopted on December 9, 2022. This type of trading plan allows corporate insiders to sell shares over a predetermined period of time, providing an affirmative defense against accusations of trading on non-public information.
Prices for the shares sold ranged from $29.72 to $30.20, with the reported price being a weighted average. In accordance with regulatory requirements, Ortenzio has committed to providing detailed information about the specific number of shares sold at each price point within the stated range if requested by Select Medical Holdings Corporation, its shareholders, or the SEC.
Following the transaction, Ortenzio still holds a substantial number of shares in the company, both directly and indirectly. According to the filing, he has direct ownership of 6,689,668 shares. Additionally, he has indirect ownership through various family trusts, including the Robert A. Ortenzio Descendants Trust, the Rocco A. Ortenzio Separate Exempt Descendants Trust, and trusts for his children, Bryan A. Ortenzio, Kevin M. Ortenzio, and Madeline G. Ortenzio. Ortenzio has disclaimed beneficial ownership of these indirectly held shares, except to the extent of his pecuniary interest.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. The sale of a significant amount of stock by a high-ranking executive like Ortenzio can be of particular interest to the investment community.
The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission, dated April 10, 2024.
InvestingPro Insights
Following the news of Executive Chairman Robert A. Ortenzio's stock sale, Select Medical Holdings Corp (NYSE:SEM) investors may be seeking additional data to better understand the company's financial health and market position. Here are some key metrics from InvestingPro that could shed light on the company's current valuation and performance:
- The market capitalization of Select Medical Holdings stands at $3.69 billion, reflecting the company's size and market value in the healthcare sector.
- With a Price to Earnings (P/E) ratio of 14.97 and an adjusted P/E ratio for the last twelve months as of Q4 2023 at 15.14, the company is trading at a valuation that suggests profitability relative to its earnings.
- The company has experienced a revenue growth of 5.22% over the last twelve months as of Q4 2023, indicating a steady increase in its financial intake.
InvestingPro Tips for Select Medical Holdings reveal that the company has a high shareholder yield and is trading at a low P/E ratio relative to near-term earnings growth, which could be appealing to investors looking for value. Additionally, analysts predict the company will be profitable this year, which may provide confidence in the company's ability to continue generating positive financial results.
For investors intrigued by these insights, there are additional InvestingPro Tips available that delve deeper into Select Medical Holdings' financials and market performance. By using the coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 8 InvestingPro Tips that could further inform investment decisions.
With the next earnings date on May 2, 2024, investors will be closely monitoring the company's performance and any strategic insights provided by the executive team. The InvestingPro platform, which includes these additional tips, can be a valuable resource for those looking to stay informed and make data-driven investment choices.
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