Select Medical (NYSE:SEM) Cut to Strong Sell at Zacks Research

Select Medical (NYSE:SEM) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Thursday,Zacks.com reports.

Other analysts have also issued reports about the stock. Royal Bank Of Canada decreased their price target on shares of Select Medical from $20.00 to $19.00 and set an “outperform” rating on the stock in a research report on Monday. Wall Street Zen lowered Select Medical from a “buy” rating to a “hold” rating in a research note on Saturday, February 21st. Mizuho set a $17.00 price target on Select Medical in a report on Monday, November 3rd. Finally, Weiss Ratings raised Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, February 20th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $16.25.

Select Medical Price Performance

NYSE SEM opened at $14.94 on Thursday. The stock has a 50-day simple moving average of $15.28 and a 200 day simple moving average of $14.16. Select Medical has a twelve month low of $11.65 and a twelve month high of $18.60. The stock has a market capitalization of $1.85 billion, a PE ratio of 12.99, a P/E/G ratio of 0.85 and a beta of 1.25. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.04 and a current ratio of 1.04.

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

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

Institutional Investors Weigh In On Select Medical

A number of hedge funds have recently made changes to their positions in the company. Mitsubishi UFJ Trust & Banking Corp boosted its position in Select Medical by 889.7% in the third quarter. Mitsubishi UFJ Trust & Banking Corp now owns 64,094 shares of the health services provider’s stock valued at $823,000 after buying an additional 57,618 shares in the last quarter. Y Intercept Hong Kong Ltd acquired a new stake in shares of Select Medical during the second quarter worth approximately $1,319,000. Public Sector Pension Investment Board raised its stake in shares of Select Medical by 21.3% in the third quarter. Public Sector Pension Investment Board now owns 430,472 shares of the health services provider’s stock valued at $5,527,000 after acquiring an additional 75,530 shares during the last quarter. Dana Investment Advisors Inc. boosted its holdings in shares of Select Medical by 52.9% in the 3rd quarter. Dana Investment Advisors Inc. now owns 524,621 shares of the health services provider’s stock worth $6,736,000 after acquiring an additional 181,436 shares in the last quarter. Finally, Segall Bryant & Hamill LLC grew its position in Select Medical by 38.3% during the 2nd quarter. Segall Bryant & Hamill LLC now owns 139,435 shares of the health services provider’s stock worth $2,117,000 after acquiring an additional 38,607 shares during the last quarter. Institutional investors and hedge funds own 89.48% of the company’s stock.

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.