Select Medical (NYSE:SEM) Downgraded to “Hold” Rating by Wall Street Zen

Select Medical (NYSE:SEM) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Monday.

A number of other research firms also recently issued reports on SEM. Benchmark downgraded shares of Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday, March 4th. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $16.50 target price (down from $19.00) on shares of Select Medical in a report on Tuesday, March 3rd. Weiss Ratings raised Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 20th. Finally, Zacks Research cut Select Medical from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 26th. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $15.63.

Select Medical Stock Performance

NYSE SEM opened at $16.24 on Monday. The stock has a fifty day simple moving average of $15.39 and a 200-day simple moving average of $14.30. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.89. The stock has a market cap of $2.01 billion, a PE ratio of 14.12, a P/E/G ratio of 0.93 and a beta of 1.22. Select Medical has a twelve month low of $11.65 and a twelve month high of $18.60.

Select Medical (NYSE:SEM) last issued its quarterly earnings data 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). The company had revenue of $1.40 billion during the quarter, compared to analysts’ expectations of $1.36 billion. Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The firm’s quarterly revenue was up 6.4% on a year-over-year basis. During the same quarter last year, the firm posted $0.18 earnings per share. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. Equities analysts anticipate that Select Medical will post 1.17 earnings per share for the current year.

Select Medical declared that its board has initiated a stock buyback program on Thursday, February 19th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the health services provider to purchase up to 49.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Select Medical

Several institutional investors have recently added to or reduced their stakes in the business. Quarry LP acquired a new position in Select Medical in the fourth quarter valued at approximately $26,000. Quantbot Technologies LP purchased a new position in Select Medical in the third quarter valued at approximately $27,000. Caitong International Asset Management Co. Ltd acquired a new stake in Select Medical during the fourth quarter worth approximately $28,000. MAI Capital Management lifted its position in shares of 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 buying an additional 2,400 shares during the last quarter. Finally, Hantz Financial Services Inc. lifted its position in shares of Select Medical by 214.7% during the 4th quarter. Hantz Financial Services Inc. now owns 2,549 shares of the health services provider’s stock worth $38,000 after buying an additional 1,739 shares during the last quarter. Hedge funds and other institutional investors own 89.48% of the company’s stock.

Select Medical News Roundup

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.