Zacks Research Lowers Earnings Estimates for Select Medical

Select Medical Holdings Corporation (NYSE:SEM) – Investment analysts at Zacks Research lowered their FY2027 earnings estimates for Select Medical in a research note issued on Thursday, March 5th. Zacks Research analyst Team now anticipates that the health services provider will post earnings per share of $1.47 for the year, down from their prior estimate of $1.74. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for Select Medical’s current full-year earnings is $1.17 per share.

Select Medical (NYSE:SEM) last posted its quarterly earnings data 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 business had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.36 billion. Select Medical had a return on equity of 7.26% and a net margin of 2.68%.The company’s quarterly revenue was up 6.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.18 earnings per share. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS.

Several other research firms have also weighed in on SEM. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $16.50 price target (down from $19.00) on shares of Select Medical in a research report on Tuesday, March 3rd. Benchmark downgraded shares of Select Medical from a “buy” rating to a “hold” rating in a report on Wednesday, March 4th. Wall Street Zen raised shares of Select Medical from a “hold” rating to a “buy” rating in a research report on Sunday, March 1st. Finally, Weiss Ratings raised shares of Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 20th. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Select Medical presently has an average rating of “Hold” and a consensus price target of $15.63.

Select Medical Stock Performance

SEM opened at $16.24 on Monday. The business’s 50-day simple moving average is $15.39 and its 200 day simple moving average is $14.30. Select Medical has a 52-week low of $11.65 and a 52-week high of $18.60. 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 firm has a market capitalization of $2.01 billion, a PE ratio of 14.12, a PEG ratio of 0.93 and a beta of 1.22.

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

Select Medical Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Monday, March 2nd will be issued a $0.0625 dividend. This represents a $0.25 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Monday, March 2nd. Select Medical’s payout ratio is currently 21.74%.

Institutional Trading of Select Medical

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Quarry LP bought a new position in Select Medical in the 4th quarter valued at about $26,000. Quantbot Technologies LP bought a new position in shares of Select Medical during the third quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd acquired a new stake in Select Medical during the 4th quarter worth approximately $28,000. MAI Capital Management lifted its holdings in 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 worth $37,000 after purchasing an additional 2,400 shares during the last quarter. Finally, Hantz Financial Services Inc. boosted its stake in Select Medical by 214.7% in the 4th quarter. Hantz Financial Services Inc. now owns 2,549 shares of the health services provider’s stock valued at $38,000 after purchasing an additional 1,739 shares during the period. Institutional investors own 89.48% of the company’s stock.

Key Headlines Impacting Select Medical

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

• Neutral Sentiment: Royal Bank of Canada assigned a Sector Perform rating on SEM, a neutral/hold view that may temper upside expectations. Article Title
• Negative Sentiment: Zacks Research sharply cut earnings estimates across multiple upcoming quarters and trimmed FY2026 and FY2027 outlooks, while maintaining a “Strong Sell” rating — a bearish analyst stance that increases selling pressure and raises questions about near-term operating momentum.
• Negative Sentiment: Kaskela Law announced an investigation into whether the $16.50 per-share buyout offer is fair to shareholders, creating legal/transaction risk and potential delay or renegotiation that can weigh on the stock. Article Title
• Negative Sentiment: Additional reporting on the shareholder-investigation highlights heightened scrutiny of the deal terms; legal inquiries typically add uncertainty and can prompt activists or lead to revised offers. Article Title

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.