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

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

SEM has been the subject of a number of analyst reports. Wall Street Zen raised Select Medical from a “hold” rating to a “buy” rating in a research report on Sunday, March 1st. 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. Benchmark lowered shares of Select Medical from a “buy” rating to a “hold” rating in a research report on Wednesday. Zacks Research cut shares of Select Medical from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and issued a $16.50 price target (down from $19.00) on shares of Select Medical in a research report on Tuesday.

Select Medical Price Performance

SEM opened at $16.24 on Friday. The stock’s 50 day moving average price is $15.39 and its 200-day moving average price is $14.28. 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 stock has a market capitalization of $2.01 billion, a PE ratio of 14.12, a price-to-earnings-growth ratio of 0.93 and a beta of 1.22.

Select Medical (NYSE:SEM) last issued 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 business had revenue of $1.40 billion during the quarter, compared to the consensus estimate of $1.36 billion. During the same quarter in the previous year, the business earned $0.18 earnings per share. The firm’s revenue 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. On average, equities research analysts predict that Select Medical will post 1.17 EPS for the current year.

Select Medical Dividend Announcement

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

Select Medical declared that its board has authorized a share repurchase plan 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 buy up to 49.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of SEM. Quarry LP purchased a new stake in shares of Select Medical in the fourth quarter worth about $26,000. Quantbot Technologies LP acquired a new position in Select Medical in the 3rd quarter worth about $27,000. Caitong International Asset Management Co. Ltd purchased a new position in Select Medical during the fourth quarter worth approximately $28,000. MAI Capital Management grew its holdings in Select Medical by 48,000.0% in the second 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 period. Finally, Hantz Financial Services Inc. increased its position 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 valued at $38,000 after buying an additional 1,739 shares in the last quarter. Institutional investors own 89.48% of the company’s stock.

Trending Headlines about 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

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.