Select Medical (NYSE:SEM) Stock Price Down 6.2% on Disappointing Earnings

Select Medical Holdings Corporation (NYSE:SEM)’s stock price fell 6.2% during mid-day trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $14.53 and last traded at $15.0910. 298,045 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 682,209 shares. The stock had previously closed at $16.08.

The health services provider reported $0.16 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.07). The company had revenue of $1.40 billion for the quarter, compared to analysts’ expectations of $1.36 billion. Select Medical had a net margin of 2.05% and a return on equity of 7.41%. The business’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.18 earnings per share. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS.

Select Medical Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd will be paid a $0.0625 dividend. The ex-dividend date is Monday, March 2nd. This represents a $0.25 annualized dividend and a dividend yield of 1.7%. Select Medical’s dividend payout ratio is 29.07%.

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

More Select Medical News

Here are the key news stories impacting Select Medical this week:

• Positive Sentiment: Board approved a large $1.0 billion share buyback (authorization to repurchase up to ~49.5% of shares), which signals management believes the stock is undervalued and can support EPS/TA over time. RTT News – Stock Buybacks
• Positive Sentiment: Revenue and operating profit improved: Q4 revenue rose ~6.4% to $1.40B and operating profit expanded materially year-over-year, showing underlying volume/revenue strength. Quiver Quantitative – Q4 Results
• Neutral Sentiment: Company declared a quarterly cash dividend of $0.0625 per share (ex-dividend Mar 2, payable Mar 12), a modest yield (~1.6%) that may attract income-focused holders but is not a major return driver. PR Newswire – Q4 Results & Dividend
• Neutral Sentiment: Analyst coverage is mixed but limited; recent median price target (~$17.50) is near the current range, and a couple of buy/outperform ratings remain on the tape. Quiver Quantitative – Analyst Notes
• Negative Sentiment: Q4 EPS missed expectations: reported $0.16 vs. consensus $0.23, and diluted EPS declined significantly year-over-year — a primary driver of the negative market reaction. Zacks – Q4 Earnings Miss
• Negative Sentiment: FY2026 EPS guidance (1.220–1.320) is slightly below the consensus midpoint (1.320), and management flagged weaker cash flow — operating cash and cash balances declined — which raises near-term financial flexibility concerns. PR Newswire – Guidance & Outlook

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on SEM. Wall Street Zen upgraded Select Medical from a “hold” rating to a “buy” rating in a research note on Saturday, November 8th. Benchmark restated a “buy” rating on shares of Select Medical in a report on Monday, October 27th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Select Medical in a research note on Wednesday, January 21st. Finally, Mizuho set a $17.00 price target on shares of Select Medical in a research report on Monday, November 3rd. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $17.80.

Institutional Investors Weigh In On Select Medical

Several institutional investors and hedge funds have recently made changes to their positions in SEM. Quarry LP acquired a new position in Select Medical in the fourth quarter worth $26,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Select Medical in the 4th quarter worth about $28,000. Quantbot Technologies LP acquired a new position in shares of Select Medical in the 3rd quarter valued at about $27,000. MAI Capital Management grew its position in shares of Select Medical by 48,000.0% during the 2nd quarter. MAI Capital Management now owns 2,405 shares of the health services provider’s stock valued at $37,000 after buying an additional 2,400 shares during the last quarter. Finally, Hantz Financial Services Inc. raised its stake in Select Medical by 214.7% during the fourth quarter. Hantz Financial Services Inc. now owns 2,549 shares of the health services provider’s stock worth $38,000 after acquiring an additional 1,739 shares during the period. 89.48% of the stock is owned by institutional investors and hedge funds.

Select Medical Stock Down 5.8%

The company has a debt-to-equity ratio of 0.87, a current ratio of 1.09 and a quick ratio of 1.09. The stock’s fifty day simple moving average is $15.32 and its 200-day simple moving average is $14.04. The stock has a market cap of $1.87 billion, a P/E ratio of 17.52, a PEG ratio of 0.57 and a beta of 1.25.

About Select Medical

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.