Select Medical (NYSE:SEM) Receives Sector Perform Rating from Royal Bank Of Canada

Royal Bank Of Canada reaffirmed their sector perform rating on shares of Select Medical (NYSE:SEM) in a research report released on Tuesday, MarketBeat Ratings reports. Royal Bank Of Canada currently has a $16.50 price target on the health services provider’s stock, down from their prior price target of $19.00.

Several other research analysts have also issued reports on SEM. Zacks Research lowered Select Medical from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 26th. Wall Street Zen raised shares of Select Medical from a “hold” rating to a “buy” rating in a report on Sunday. Mizuho set a $17.00 target price on shares of Select Medical in a research report on Monday, November 3rd. Finally, Weiss Ratings upgraded shares of Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 20th. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $15.63.

Select Medical Stock Performance

NYSE SEM opened at $16.25 on Tuesday. Select Medical has a twelve month low of $11.65 and a twelve month high of $18.60. 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 stock has a market cap of $2.02 billion, a P/E ratio of 14.13, a PEG ratio of 0.85 and a beta of 1.22. The company’s 50-day simple moving average is $15.31 and its 200 day simple moving average is $14.23.

Select Medical (NYSE:SEM) last released 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). Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The company had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.36 billion. During the same period in the previous year, the firm posted $0.18 earnings per share. The firm’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, research analysts forecast that Select Medical will post 1.17 earnings per share for the current fiscal year.

Select Medical Dividend Announcement

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

Select Medical announced that its Board of Directors has approved a stock repurchase plan on Thursday, February 19th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows 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.

Institutional Investors Weigh In On Select Medical

Institutional investors have recently made changes to their positions in the stock. Quarry LP acquired a new position in Select Medical in the fourth quarter worth approximately $26,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Select Medical during the 4th quarter valued at $28,000. Quantbot Technologies LP bought a new stake in shares of Select Medical during the 3rd quarter worth $27,000. MAI Capital Management grew its holdings in shares of Select Medical by 48,000.0% in the 2nd quarter. MAI Capital Management now owns 2,405 shares of the health services provider’s stock worth $37,000 after acquiring an additional 2,400 shares during the last quarter. Finally, Hantz Financial Services Inc. raised its position in shares of Select Medical by 214.7% during 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 period. 89.48% of the stock is owned by institutional investors and hedge funds.

More Select Medical News

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

• Positive Sentiment: Definitive merger agreement — a consortium led by Robert A. Ortenzio, Martin F. Jackson and WCAS will pay $16.50 per share in cash, implying ~ $3.9B enterprise value; approved by disinterested directors and overseen by a special committee. The deal is not subject to a financing condition and some insiders will roll equity, which reduces closing risk and supports the stock moving toward the deal price. Press Release — Company Merger Announcement
• Positive Sentiment: Market / arbitrage reaction — the fixed cash consideration typically pulls trading toward the offer price; commentary and trade flows (including hedge fund repositioning) have pushed the stock higher as investors weigh closing probability and timing. QuiverQuant Analysis
• Neutral Sentiment: Timing and approvals — Select Medical expects the transaction to close in mid-2026 subject to unaffiliated shareholder and regulatory approvals; analyst coverage reflects the deal price as the primary valuation anchor. Seeking Alpha — Deal Coverage
• Neutral Sentiment: Analyst positioning — RBC reiterated a sector perform rating and set a $16.50 target (aligned with the deal price), leaving little upside beyond the offer and signaling limited analyst-driven re-rating. Benzinga — Analyst Note
• Negative Sentiment: Shareholder litigation risk — multiple law firms (Monteverde & Associates, Brodsky & Smith, Halper Sadeh, Ademi LLP) have announced investigations alleging potential fiduciary breaches or unfair pricing tied to the management-led buyout. These actions can delay closing, increase deal costs, or lead to renegotiation. Monteverde Alert Brodsky & Smith Notice Halper Sadeh Alert Ademi LLP Alert

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.