Select Medical (NYSE:SEM – Get Free Report) declared that its board has approved a share buyback plan on Thursday, February 19th, RTT News reports. The company plans to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the health services provider to purchase up to 49.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its stock is undervalued.
Analyst Upgrades and Downgrades
SEM has been the subject of a number of research analyst reports. Benchmark reissued a “buy” rating on shares of Select Medical in a research report on Monday, October 27th. Weiss Ratings upgraded Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday. Mizuho set a $17.00 target price on shares of Select Medical in a research report on Monday, November 3rd. Finally, Wall Street Zen downgraded shares of Select Medical from a “buy” rating to a “hold” rating in a research report on Saturday. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $17.80.
Check Out Our Latest Analysis on SEM
Select Medical Stock Down 6.5%
Select Medical (NYSE:SEM – Get Free Report) 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 company had revenue of $1.40 billion for the quarter, compared to the consensus estimate of $1.36 billion. Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The company’s revenue was up 6.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.18 earnings per share. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. Equities research analysts anticipate that Select Medical will post 1.17 EPS for the current fiscal year.
Select Medical Dividend Announcement
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Monday, March 2nd will be paid a dividend of $0.0625 per share. The ex-dividend date is Monday, March 2nd. This represents a $0.25 annualized dividend and a yield of 1.7%. Select Medical’s dividend payout ratio is presently 29.07%.
Select Medical News Roundup
Here are the key news stories impacting Select Medical this week:
- Positive Sentiment: Board authorized a large share buyback — a $1.0 billion repurchase plan that could cover up to ~49.5% of outstanding shares; this signals management thinks the stock is undervalued and supports earnings per share. RTT News: Buyback
- Positive Sentiment: Board declared a quarterly cash dividend of $0.0625 per share (annualized yield ~1.7%), adding a steady return component for income-focused holders. PR Newswire: Q4 results & dividend
- Positive Sentiment: Top-line beat and operating profit rebound — Q4 revenue grew 6.4% to $1.40B (above estimates) and operating profit improved materially, showing service demand strength in key segments. QuiverQuant: Q4 results
- Neutral Sentiment: FY‑2026 guidance is roughly in line with consensus on revenue but EPS guidance (1.22–1.32) sits at the low end vs. consensus (~1.32), leaving upside limited unless margins improve. PR Newswire: Guidance
- Neutral Sentiment: Full earnings call transcript is available for details on expense drivers and segment trends — useful for investors deciding whether the EPS shortfall is temporary. Seeking Alpha: Earnings Call Transcript
- Negative Sentiment: EPS missed estimates — reported $0.16 vs. consensus ~$0.23, weighed by rising expenses and margin pressure; that miss is the primary near-term driver of the stock decline. Zacks: EPS miss
- Negative Sentiment: Weak cash flow and lower net income — operating cash fell sharply year-over-year and cash on hand declined, which raises near-term financial flexibility concerns despite the buyback plan. QuiverQuant: Cash flow & balance sheet
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.
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