Select Medical (NYSE:SEM) Raised to “Buy” at Wall Street Zen

Select Medical (NYSE:SEM) was upgraded by analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a note issued to investors on Sunday.

A number of other equities analysts have also recently weighed in on the stock. Weiss Ratings raised shares of Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 20th. Zacks Research lowered Select Medical from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th. Royal Bank Of Canada lowered their price target on Select Medical from $20.00 to $19.00 and set an “outperform” rating for the company in a report on Monday, February 23rd. Finally, Mizuho set a $17.00 price objective on Select Medical in a report on Monday, November 3rd. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $16.25.

Select Medical Price Performance

Shares of SEM opened at $15.00 on Friday. The stock has a market cap of $1.86 billion, a P/E ratio of 13.04, a price-to-earnings-growth ratio of 0.85 and a beta of 1.22. Select Medical has a 1 year low of $11.65 and a 1 year high of $18.60. The stock’s 50-day moving average price is $15.28 and its two-hundred day moving average price is $14.20. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.89.

Select Medical (NYSE:SEM) last announced its quarterly earnings results on Thursday, February 19th. The health services provider reported $0.16 earnings per share for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.07). The firm had revenue of $1.40 billion during the quarter, compared to analyst estimates of $1.36 billion. Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The business’s revenue was up 6.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.18 earnings per share. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. On average, equities analysts predict that Select Medical will post 1.17 earnings per share for the current year.

Select Medical declared that its board has authorized a share repurchase plan on Thursday, February 19th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the health services provider to reacquire up to 49.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On Select Medical

A number of large investors have recently modified their holdings of SEM. Mitsubishi UFJ Trust & Banking Corp increased its position in shares of Select Medical by 889.7% during the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 64,094 shares of the health services provider’s stock worth $823,000 after purchasing an additional 57,618 shares during the last quarter. Public Sector Pension Investment Board boosted its holdings in shares of Select Medical by 21.3% in the 3rd quarter. Public Sector Pension Investment Board now owns 430,472 shares of the health services provider’s stock valued at $5,527,000 after buying an additional 75,530 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new position in shares of Select Medical in the second quarter valued at $1,319,000. Dana Investment Advisors Inc. increased its holdings in Select Medical by 52.9% during the third quarter. Dana Investment Advisors Inc. now owns 524,621 shares of the health services provider’s stock worth $6,736,000 after buying an additional 181,436 shares during the last quarter. Finally, Western Standard LLC bought a new stake in Select Medical during the third quarter worth $13,551,000. 89.48% of the stock is currently owned by institutional investors and hedge funds.

Select Medical Company Profile

Select Medical is a leading provider of specialized healthcare services in the United States, operating through two primary business segments: Hospital Division and Outpatient Rehabilitation Division. The Hospital Division offers long-term acute care (LTAC) hospitals and inpatient rehabilitation facilities (IRFs) that serve patients recovering from complex illnesses, trauma or surgery. The Outpatient Rehabilitation Division delivers physical, occupational and speech therapy services through a network of clinic locations and home-based care programs.

Headquartered in Mechanicsburg, Pennsylvania, Select Medical was founded in 1996 and has grown through strategic partnerships, joint ventures and acquisitions.