Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Should You Avoid Select Medical Holdings Corporation (SEM)?

Is it smart to be bullish on Select Medical Holdings Corporation (NYSE:SEM)?

In the financial world, there are dozens of indicators shareholders can use to monitor stocks. A duo of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite investment managers can outpace their index-focused peers by a solid amount (see just how much).

Just as crucial, bullish insider trading activity is another way to look at the marketplace. Just as you’d expect, there are a variety of reasons for an insider to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the useful potential of this strategy if “monkeys” understand what to do (learn more here).

What’s more, let’s analyze the newest info about Select Medical Holdings Corporation (NYSE:SEM).

What have hedge funds been doing with Select Medical Holdings Corporation (NYSE:SEM)?

At Q2’s end, a total of 19 of the hedge funds we track were long in this stock, a change of -10% from the first quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes substantially.

Select Medical Holdings Corporation (NYSE:SEM)According to our 13F database, Regiment Capital, managed by Timothy S. Peterson, holds the largest position in Select Medical Holdings Corporation (NYSE:SEM). Regiment Capital has a $12.3 million position in the stock, comprising 3.5% of its 13F portfolio. On Regiment Capital’s heels is Chuck Royce of Royce & Associates, with a $11.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedgies that hold long positions include Ken Griffin’s Citadel Investment Group, Joel Greenblatt’s Gotham Asset Management and David Dreman’s Dreman Value Management.

Due to the fact Select Medical Holdings Corporation (NYSE:SEM) has witnessed declining interest from the entirety of the hedge funds we track, it’s easy to see that there were a few hedge funds who sold off their full holdings last quarter. At the top of the heap, Steven Cohen’s SAC Capital Advisors said goodbye to the biggest position of all the hedgies we watch, totaling an estimated $0.9 million in stock, and Neil Chriss of Hutchin Hill Capital was right behind this move, as the fund dropped about $0.4 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 2 funds last quarter.

How are insiders trading Select Medical Holdings Corporation (NYSE:SEM)?

Insider buying made by high-level executives is most useful when the company in question has seen transactions within the past 180 days. Over the last 180-day time frame, Select Medical Holdings Corporation (NYSE:SEM) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to Select Medical Holdings Corporation (NYSE:SEM). These stocks are Community Health Systems (NYSE:CYH), Health Management Associates Inc (NYSE:HMA), LifePoint Hospitals, Inc. (NASDAQ:LPNT), Amsurg Corp (NASDAQ:AMSG), and Vanguard Health Systems, Inc. (NYSE:VHS). This group of stocks belong to the hospitals industry and their market caps are similar to SEM’s market cap.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...