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

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

Several research analysts recently issued reports on the company. Weiss Ratings raised Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 20th. Benchmark lowered Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday, March 4th. Wall Street Zen lowered shares of Select Medical from a “buy” rating to a “hold” rating in a research report on Monday, March 9th. Royal Bank Of Canada reissued a “sector perform” rating and set a $16.50 target price (down from $19.00) on shares of Select Medical in a research report on Tuesday, March 3rd. Finally, Zacks Research cut shares of Select Medical from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th.

Select Medical Trading Up 0.0%

NYSE SEM opened at $16.30 on Wednesday. Select Medical has a 52 week low of $11.65 and a 52 week high of $18.60. The company has a 50 day moving average price of $15.78 and a 200 day moving average price of $14.69. 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 firm has a market cap of $2.02 billion, a PE ratio of 14.17, a price-to-earnings-growth ratio of 0.94 and a beta of 1.22.

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

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

Select Medical Dividend Announcement

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of SEM. Royal Bank of Canada lifted its holdings in shares of Select Medical by 8.5% during the first quarter. Royal Bank of Canada now owns 95,771 shares of the health services provider’s stock worth $1,599,000 after purchasing an additional 7,502 shares during the period. AQR Capital Management LLC raised its position in Select Medical by 96.6% during the 1st quarter. AQR Capital Management LLC now owns 33,894 shares of the health services provider’s stock worth $566,000 after buying an additional 16,656 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Select Medical by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 64,400 shares of the health services provider’s stock valued at $1,075,000 after acquiring an additional 2,809 shares during the period. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Select Medical in the 1st quarter valued at $220,000. Finally, Goldman Sachs Group Inc. increased its stake in shares of Select Medical by 25.3% in the first quarter. Goldman Sachs Group Inc. now owns 728,689 shares of the health services provider’s stock worth $12,169,000 after acquiring an additional 147,183 shares during the period. 89.48% of the stock is owned by institutional investors and hedge funds.

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.