Select Medical Holdings Corporation (NYSE:SEM) Receives Average Recommendation of “Hold” from Brokerages

Select Medical Holdings Corporation (NYSE:SEM) has been assigned a consensus recommendation of “Hold” from the seven brokerages that are covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, four have issued a hold rating and two have assigned a buy rating to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $15.6250.

Several equities research analysts have recently issued reports on SEM shares. Weiss Ratings raised Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research note 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. Benchmark downgraded Select Medical from a “buy” rating to a “hold” rating in a research report on Wednesday, March 4th. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $16.50 price objective (down from $19.00) on shares of Select Medical in a research note on Tuesday, March 3rd. Finally, Wall Street Zen downgraded shares of Select Medical from a “buy” rating to a “hold” rating in a research note on Monday, March 9th.

Select Medical Stock Performance

Select Medical stock opened at $16.25 on Friday. The company’s 50-day moving average price is $15.53 and its 200-day moving average price is $14.39. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.89. The company has a market cap of $2.01 billion, a PE ratio of 14.13, a price-to-earnings-growth ratio of 0.93 and a beta of 1.22. Select Medical has a twelve month low of $11.65 and a twelve month high of $18.60.

Select Medical (NYSE:SEM) last announced its quarterly earnings results on Thursday, February 19th. The health services provider reported $0.16 EPS for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.07). Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The business had revenue of $1.40 billion during the quarter, compared to the consensus estimate of $1.36 billion. During the same period in the previous year, the business posted $0.18 EPS. The firm’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 research analysts forecast that Select Medical will post 1.17 EPS for the current fiscal year.

Select Medical announced that its board has authorized a share buyback program on Thursday, February 19th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the health services provider to purchase up to 49.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Select Medical Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, March 12th. Investors of record on Monday, March 2nd were issued a dividend of $0.0625 per share. This represents a $0.25 annualized dividend and a yield of 1.5%. The ex-dividend date was Monday, March 2nd. Select Medical’s dividend payout ratio is presently 21.74%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Quarry LP purchased a new stake in shares of Select Medical in the fourth quarter worth approximately $26,000. Quantbot Technologies LP purchased a new position in Select Medical during the 3rd quarter valued at $27,000. Caitong International Asset Management Co. Ltd bought a new position in Select Medical in the 4th quarter valued at $28,000. MAI Capital Management increased its stake in Select Medical by 48,000.0% in the second quarter. MAI Capital Management now owns 2,405 shares of the health services provider’s stock worth $37,000 after purchasing an additional 2,400 shares during the period. Finally, Hantz Financial Services Inc. lifted its position in shares of 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 purchasing an additional 1,739 shares during the last quarter. Hedge funds and other institutional investors 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.