Select Medical (NYSE:SEM) Downgraded to Hold Rating by Wall Street Zen

Wall Street Zen downgraded shares of Select Medical (NYSE:SEM) from a buy rating to a hold rating in a report released on Monday morning.

A number of other equities analysts have also recently issued reports on the company. Zacks Research cut Select Medical from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th. Benchmark downgraded Select Medical from a “buy” rating to a “hold” rating in a report on Wednesday, March 4th. Royal Bank Of Canada reissued a “sector perform” rating and issued a $16.50 price target (down from $19.00) on shares of Select Medical in a research note on Tuesday, March 3rd. Finally, Weiss Ratings upgraded Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, February 20th. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $15.63.

Select Medical Stock Down 0.0%

SEM stock opened at $16.25 on Monday. The firm has a market cap of $2.01 billion, a PE ratio of 14.13, a P/E/G ratio of 0.93 and a beta of 1.22. Select Medical has a 12 month low of $11.65 and a 12 month high of $18.60. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.04 and a quick ratio of 1.04. The firm has a 50 day simple moving average of $15.42 and a 200 day simple moving average of $14.32.

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

Select Medical Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd will be issued a $0.0625 dividend. The ex-dividend date is Monday, March 2nd. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.5%. Select Medical’s dividend payout ratio is presently 21.74%.

Select Medical announced that its board has initiated a share buyback 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 buy up to 49.5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. 8 Knots Management LLC purchased a new stake in Select Medical in the 2nd quarter worth about $26,568,000. Millennium Management LLC grew its stake in Select Medical by 407.9% during the 3rd quarter. Millennium Management LLC now owns 1,590,339 shares of the health services provider’s stock valued at $20,420,000 after acquiring an additional 1,277,233 shares in the last quarter. Adage Capital Partners GP L.L.C. acquired a new position in shares of Select Medical in the 4th quarter valued at about $17,603,000. Western Standard LLC purchased a new stake in shares of Select Medical in the third quarter worth approximately $13,551,000. Finally, Eversept Partners LP purchased a new stake in shares of Select Medical in the fourth quarter worth approximately $13,456,000. 89.48% of the stock is 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.