Select Medical (NYSE:SEM) Upgraded to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Select Medical (NYSE:SEM) from a hold rating to a buy rating in a research report sent to investors on Sunday.

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

Select Medical Stock Up 0.1%

SEM opened at $14.94 on Friday. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.04 and a current ratio of 1.04. The company 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 1.22. The stock’s fifty day moving average is $15.28 and its 200-day moving average is $14.19. Select Medical has a one year low of $11.65 and a one year high of $18.60.

Select Medical (NYSE:SEM) last released its earnings results on Thursday, February 19th. The health services provider reported $0.16 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.07). Select Medical had a return on equity of 7.26% and a net margin of 2.68%.The firm had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.36 billion. During the same period in the previous year, the firm earned $0.18 earnings per share. Select Medical’s revenue was up 6.4% on a year-over-year basis. 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 EPS for the current fiscal year.

Select Medical Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Monday, March 2nd will be paid a $0.0625 dividend. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $0.25 dividend on an annualized basis and a yield of 1.7%. Select Medical’s dividend payout ratio (DPR) is currently 21.74%.

Select Medical declared that its Board of Directors has authorized a share repurchase plan on Thursday, February 19th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the health services provider to buy up to 49.5% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On Select Medical

Institutional investors and hedge funds have recently bought and sold shares of the business. Smartleaf Asset Management LLC increased its holdings in shares of Select Medical by 37.8% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,870 shares of the health services provider’s stock valued at $43,000 after purchasing an additional 788 shares during the period. Advisors Asset Management Inc. grew its position in Select Medical by 13.2% during the second quarter. Advisors Asset Management Inc. now owns 7,135 shares of the health services provider’s stock valued at $108,000 after purchasing an additional 834 shares in the last quarter. State of Alaska Department of Revenue increased its stake in Select Medical by 1.5% in the 4th quarter. State of Alaska Department of Revenue now owns 63,370 shares of the health services provider’s stock valued at $940,000 after buying an additional 935 shares during the period. Wilmington Savings Fund Society FSB lifted its position in Select Medical by 20.9% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 5,784 shares of the health services provider’s stock worth $74,000 after buying an additional 999 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH boosted its stake in shares of Select Medical by 9.7% during the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 11,475 shares of the health services provider’s stock valued at $171,000 after buying an additional 1,014 shares during the period. Hedge funds and other institutional investors own 89.48% of the company’s stock.

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.