Select Medical (NYSE:SEM) Downgraded to Hold Rating by Wall Street Zen

Select Medical (NYSE:SEM) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday.

A number of other equities research analysts also recently issued reports on SEM. Weiss Ratings restated a “sell (d+)” rating on shares of Select Medical in a research note on Wednesday, January 21st. Mizuho set a $17.00 price objective on shares of Select Medical in a report on Monday, November 3rd. Finally, Benchmark reaffirmed a “buy” rating on shares of Select Medical in a report on Monday, October 27th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $17.80.

Select Medical Stock Down 6.5%

SEM opened at $15.04 on Friday. The stock has a market capitalization of $1.86 billion, a price-to-earnings ratio of 13.07, a PEG ratio of 0.56 and a beta of 1.25. The firm has a 50 day moving average price of $15.31 and a 200-day moving average price of $14.06. Select Medical has a twelve month low of $11.65 and a twelve month high of $19.40. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.87.

Select Medical (NYSE:SEM) last posted its 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). The company 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 company’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same period last year, the firm posted $0.18 EPS. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. Equities research analysts forecast that Select Medical will post 1.17 earnings per share for the current year.

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

Institutional Trading of Select Medical

Several institutional investors have recently made changes to their positions in SEM. Quarry LP purchased a new position in Select Medical in the 4th quarter worth approximately $26,000. Quantbot Technologies LP bought a new position in shares of Select Medical during the third quarter worth $27,000. Caitong International Asset Management Co. Ltd bought a new stake in Select Medical in the 4th quarter valued at $28,000. MAI Capital Management boosted its holdings 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 purchasing an additional 2,400 shares during the last quarter. Finally, Hantz Financial Services Inc. increased its holdings in shares of Select Medical by 214.7% in 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.

More Select Medical News

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

• Positive Sentiment: Board authorized a large share buyback — a $1.0 billion repurchase plan that could cover up to ~49.5% of outstanding shares; this signals management thinks the stock is undervalued and supports earnings per share. RTT News: Buyback
• Positive Sentiment: Board declared a quarterly cash dividend of $0.0625 per share (annualized yield ~1.7%), adding a steady return component for income-focused holders. PR Newswire: Q4 results & dividend
• Positive Sentiment: Top-line beat and operating profit rebound — Q4 revenue grew 6.4% to $1.40B (above estimates) and operating profit improved materially, showing service demand strength in key segments. QuiverQuant: Q4 results
• Neutral Sentiment: FY‑2026 guidance is roughly in line with consensus on revenue but EPS guidance (1.22–1.32) sits at the low end vs. consensus (~1.32), leaving upside limited unless margins improve. PR Newswire: Guidance
• Neutral Sentiment: Full earnings call transcript is available for details on expense drivers and segment trends — useful for investors deciding whether the EPS shortfall is temporary. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: EPS missed estimates — reported $0.16 vs. consensus ~$0.23, weighed by rising expenses and margin pressure; that miss is the primary near-term driver of the stock decline. Zacks: EPS miss
• Negative Sentiment: Weak cash flow and lower net income — operating cash fell sharply year-over-year and cash on hand declined, which raises near-term financial flexibility concerns despite the buyback plan. QuiverQuant: Cash flow & balance sheet

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.