Select Medical (NYSE:SEM) Releases FY 2026 Earnings Guidance

Select Medical (NYSE:SEM) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 1.220-1.320 for the period, compared to the consensus estimate of 1.260. The company issued revenue guidance of $5.6 billion-$5.8 billion, compared to the consensus revenue estimate of $5.7 billion.

Select Medical Trading Down 0.3%

NYSE:SEM traded down $0.06 during midday trading on Thursday, hitting $16.44. 1,671,689 shares of the company traded hands, compared to its average volume of 1,797,812. The firm’s fifty day moving average is $16.13 and its 200-day moving average is $15.21. Select Medical has a 12-month low of $11.65 and a 12-month high of $18.53. The firm has a market capitalization of $2.04 billion, a P/E ratio of 14.29, a P/E/G ratio of 0.94 and a beta of 1.12. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.89.

Select Medical (NYSE:SEM) last released its quarterly earnings results on Thursday, April 30th. The health services provider reported $0.36 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.07). Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The company had revenue of $1.42 billion for the quarter, compared to analysts’ expectations of $1.41 billion. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. On average, sell-side analysts predict that Select Medical will post 1.27 EPS for the current year.

Select Medical Dividend Announcement

The business 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%.

Select Medical announced that its board has authorized a stock buyback plan on Thursday, February 19th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the health services provider to reacquire up to 49.5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on SEM shares. Royal Bank Of Canada restated a “sector perform” rating and set a $16.50 price target (down from $19.00) on shares of Select Medical in a report on Tuesday, March 3rd. Zacks Research lowered Select Medical from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th. Weiss Ratings upgraded Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, February 20th. Wall Street Zen lowered Select Medical from a “buy” rating to a “hold” rating in a report on Monday, March 9th. Finally, Benchmark lowered Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday, March 4th. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $15.63.

Hedge Funds Weigh In On Select Medical

Institutional investors have recently made changes to their positions in the company. Tower Research Capital LLC TRC increased its stake in shares of Select Medical by 282.5% during the second quarter. Tower Research Capital LLC TRC now owns 11,639 shares of the health services provider’s stock valued at $177,000 after buying an additional 8,596 shares during the period. Canada Pension Plan Investment Board purchased a new position in shares of Select Medical during the second quarter valued at $168,000. nVerses Capital LLC purchased a new position in shares of Select Medical during the fourth quarter valued at $163,000. Brooklyn Investment Group purchased a new position in shares of Select Medical during the fourth quarter valued at $161,000. Finally, Graham Capital Management L.P. purchased a new position in shares of Select Medical during the fourth quarter valued at $154,000. 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.