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

Select Medical (NYSE:SEM) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued on Sunday.

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

Select Medical Price Performance

Select Medical stock opened at $14.94 on Friday. The company’s 50 day simple moving average is $15.28 and its 200-day simple moving average is $14.18. 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 has a 1 year low of $11.65 and a 1 year high of $18.60. The company has a market capitalization of $1.85 billion, a price-to-earnings ratio of 12.99, a price-to-earnings-growth ratio of 0.85 and a beta of 1.25.

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

Select Medical announced that its board has authorized a share buyback plan on Thursday, February 19th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the health services provider to purchase up to 49.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in SEM. Mitsubishi UFJ Trust & Banking Corp grew its position in Select Medical by 889.7% during the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 64,094 shares of the health services provider’s stock worth $823,000 after purchasing an additional 57,618 shares during the last quarter. Y Intercept Hong Kong Ltd acquired a new stake in shares of Select Medical during the second quarter worth about $1,319,000. Public Sector Pension Investment Board grew its holdings in shares of Select Medical by 21.3% during the third quarter. Public Sector Pension Investment Board now owns 430,472 shares of the health services provider’s stock worth $5,527,000 after buying an additional 75,530 shares during the last quarter. Dana Investment Advisors Inc. increased its position in 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 valued at $6,736,000 after acquiring an additional 181,436 shares during the period. Finally, Western Standard LLC purchased a new stake in Select Medical during the 3rd quarter valued at approximately $13,551,000. 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.