Select Medical (NYSE:SEM) Sees Large Volume Increase – What’s Next?

Select Medical Holdings Corporation (NYSE:SEM) saw unusually-high trading volume on Wednesday . Approximately 2,925,040 shares traded hands during mid-day trading, an increase of 176% from the previous session’s volume of 1,060,913 shares.The stock last traded at $16.25 and had previously closed at $16.26.

Key Headlines Impacting Select Medical

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

• Positive Sentiment: Shareholder law firms have launched investigations into the fairness of the $16.50 per-share buyout, which could pressure the acquirers to negotiate a higher deal price or delay/adjust the transaction — a potential upside for holders. Kaskela Law/BusinessWire
• Positive Sentiment: A second firm, Kahn Swick & Foti (KSF), is independently investigating the adequacy of price and process for the proposed sale; multiple challenges increase the chance of a contest or renegotiation. KSF/BusinessWire
• Neutral Sentiment: Royal Bank of Canada assigned a Sector Perform rating — a middle-ground view that may temper both upside and downside momentum absent new catalysts. AmericanBankingNews: RBC
• Negative Sentiment: Zacks Research cut EPS estimates across multiple upcoming quarters and trimmed FY2026 and FY2027 outlooks, while maintaining a “Strong Sell” rating — analyst downgrades increase downside risk, reduce investor confidence, and help explain downward pressure on the shares.
• Negative Sentiment: The combination of lowered near-term earnings forecasts and an announced cash buyout at $16.50 creates binary risk: either the deal closes (capping upside near the offer) or legal/negotiation outcomes introduce volatility and execution risk.

Analyst Upgrades and Downgrades

A number of research firms have commented on SEM. Zacks Research cut shares of Select Medical from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Royal Bank Of Canada reissued a “sector perform” rating and issued a $16.50 price target (down from $19.00) on shares of Select Medical in a research note on Tuesday. Weiss Ratings upgraded shares of Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, February 20th. Wall Street Zen upgraded shares of Select Medical from a “hold” rating to a “buy” rating in a report on Sunday, March 1st. Finally, Benchmark cut Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $15.63.

Select Medical Price Performance

The company’s 50-day simple moving average is $15.37 and its 200 day simple moving average is $14.26. The company has a market cap of $2.01 billion, a PE ratio of 14.11, a PEG ratio of 0.92 and a beta of 1.22. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.04 and a current ratio of 1.04.

Select Medical (NYSE:SEM) last posted 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). The company had revenue of $1.40 billion for the quarter, compared to analysts’ expectations of $1.36 billion. Select Medical had a return on equity of 7.26% and a net margin of 2.68%.The firm’s revenue was up 6.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.18 EPS. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. On average, sell-side analysts predict that Select Medical Holdings Corporation will post 1.17 earnings per share for the current fiscal year.

Select Medical Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd will be given a dividend of $0.0625 per share. 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 payout ratio is currently 21.74%.

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

Hedge Funds Weigh In On Select Medical

Institutional investors and hedge funds have recently modified their holdings of the company. Mitsubishi UFJ Trust & Banking Corp boosted its holdings in Select Medical by 889.7% in the third quarter. Mitsubishi UFJ Trust & Banking Corp now owns 64,094 shares of the health services provider’s stock valued at $823,000 after purchasing an additional 57,618 shares in the last quarter. Dana Investment Advisors Inc. lifted its position in shares of Select Medical by 52.9% during the 3rd quarter. Dana Investment Advisors Inc. now owns 524,621 shares of the health services provider’s stock worth $6,736,000 after buying an additional 181,436 shares during the last quarter. Public Sector Pension Investment Board boosted its holdings in shares of Select Medical by 21.3% in the 3rd quarter. Public Sector Pension Investment Board now owns 430,472 shares of the health services provider’s stock valued at $5,527,000 after buying an additional 75,530 shares in the last quarter. Western Standard LLC purchased a new position in shares of Select Medical in the 3rd quarter valued at $13,551,000. Finally, Segall Bryant & Hamill LLC raised its stake in Select Medical by 38.3% during the 2nd quarter. Segall Bryant & Hamill LLC now owns 139,435 shares of the health services provider’s stock worth $2,117,000 after acquiring an additional 38,607 shares in the last quarter. Institutional investors and hedge funds own 89.48% of the company’s stock.

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.