Zacks Research Boosts Earnings Estimates for Select Medical

Select Medical Holdings Corporation (NYSE:SEM) – Research analysts at Zacks Research raised their Q1 2026 earnings per share estimates for shares of Select Medical in a research note issued to investors on Thursday, March 5th. Zacks Research analyst Team now anticipates that the health services provider will post earnings per share of $0.38 for the quarter, up from their previous estimate of $0.35. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for Select Medical’s current full-year earnings is $1.17 per share. Zacks Research also issued estimates for Select Medical’s Q2 2026 earnings at $0.28 EPS, Q3 2026 earnings at $0.23 EPS, Q4 2026 earnings at $0.38 EPS, FY2026 earnings at $1.26 EPS, Q1 2027 earnings at $0.43 EPS, Q2 2027 earnings at $0.36 EPS, Q3 2027 earnings at $0.33 EPS, Q4 2027 earnings at $0.35 EPS and FY2028 earnings at $1.69 EPS.

Select Medical (NYSE:SEM) last released its quarterly earnings results 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 business had revenue of $1.40 billion during the quarter, compared to analyst estimates 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 in the previous year, the firm posted $0.18 earnings per share. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS.

SEM has been the subject of several other reports. 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. Wall Street Zen upgraded Select Medical from a “hold” rating to a “buy” rating in a research note on Sunday, March 1st. Benchmark reissued a “hold” rating on shares of Select Medical in a report on Wednesday. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $16.50 price objective (down from $19.00) on shares of Select Medical in a research note on Tuesday. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $15.63.

Select Medical Stock Performance

SEM opened at $16.24 on Friday. The firm has a market cap of $2.01 billion, a P/E ratio of 14.12, a price-to-earnings-growth ratio of 0.92 and a beta of 1.22. The business’s fifty day moving average is $15.37 and its 200-day moving average is $14.26. 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.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. 8 Knots Management LLC acquired a new position in Select Medical in the 2nd quarter valued at approximately $26,568,000. Millennium Management LLC increased its holdings in Select Medical by 407.9% in the third quarter. Millennium Management LLC now owns 1,590,339 shares of the health services provider’s stock valued at $20,420,000 after purchasing an additional 1,277,233 shares during the period. Adage Capital Partners GP L.L.C. bought a new position in Select Medical during the 4th quarter worth $17,603,000. Western Standard LLC bought a new stake in shares of Select Medical in the 3rd quarter valued at about $13,551,000. Finally, Eversept Partners LP acquired a new stake in shares of Select Medical in the fourth quarter valued at about $13,456,000. Institutional investors own 89.48% of the company’s stock.

Select Medical Dividend Announcement

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

Select Medical announced that its Board of Directors has approved a stock buyback plan on Thursday, February 19th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the health services provider to purchase up to 49.5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Key Headlines Impacting Select Medical

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

• Positive Sentiment: The March 4 trading reaction — shares jumped ~8.4% as traders bought ahead of expected delisting, signaling short‑term demand and liquidity around the deal. Select Medical (SEM) Soars 8.4%, Traders Snap up Shares Ahead of Delisting
• Positive Sentiment: Zacks notes the $16.50 take‑private price may be undervalued relative to some analyst targets, implying potential upside for shareholders who think bids or outcomes could improve. SEM’s $16.50 Take-Private Moment: Undervalued or Perfectly Timed?
• Neutral Sentiment: Royal Bank of Canada gave SEM a Sector Perform rating — a reiteration that suggests no near‑term conviction for outsized moves from the street. Select Medical (NYSE:SEM) Earns Sector Perform Rating from Royal Bank Of Canada
• Neutral Sentiment: Benchmark reaffirmed a “hold” on SEM, reflecting cautious analyst posture amid the pending transaction and mixed fundamentals. Benchmark Reaffirms Hold
• Neutral Sentiment: Recent quarterly results showed a modest EPS miss (Feb 19) but revenue beat and FY‑2026 guidance of $1.22–1.32 — investors should weigh fundamentals vs. takeover dynamics when valuing the $16.50 offer. Select Medical Stock & Earnings Summary
• Negative Sentiment: Kahn Swick & Foti announced an investigation into whether the sale price and process are adequate; such suits can delay closing, increase deal costs, or lead to renegotiation. Select Medical Investor Alert: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process
• Negative Sentiment: Kaskela Law launched a separate probe into whether $16.50 is fair, increasing the chance of litigation or shareholder pushback that could affect timing and final consideration. SELECT MEDICAL STOCK ALERT: Kaskela Law Announces Investigation

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.