Zacks Research Lowers Earnings Estimates for Select Medical

Select Medical Holdings Corporation (NYSE:SEM) – Equities researchers at Zacks Research reduced their FY2027 earnings per share estimates for Select Medical in a note issued to investors on Thursday, March 5th. Zacks Research analyst Team now expects that the health services provider will earn $1.47 per share for the year, down from their previous forecast of $1.74. 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.

Select Medical (NYSE:SEM) last posted its earnings results on Thursday, February 19th. The health services provider reported $0.16 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.07). Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The firm had revenue of $1.40 billion during the quarter, compared to analyst estimates of $1.36 billion. During the same period in the previous year, the company posted $0.18 EPS. Select Medical’s revenue for the quarter 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.

Several other research firms have also commented on SEM. Benchmark lowered shares of Select Medical from a “buy” rating to a “hold” rating in a report on Wednesday, March 4th. Wall Street Zen downgraded shares of Select Medical from a “buy” rating to a “hold” rating in a research report on Monday. Weiss Ratings upgraded Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 20th. Finally, Royal Bank Of Canada reissued a “sector perform” rating and set a $16.50 price target (down from $19.00) on shares of Select Medical in a report on Tuesday, March 3rd. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $15.63.

Select Medical Stock Up 0.0%

SEM stock opened at $16.26 on Monday. Select Medical has a 52 week low of $11.65 and a 52 week high of $18.60. The business has a 50-day simple moving average of $15.45 and a 200 day simple moving average of $14.34. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.89. The company has a market cap of $2.02 billion, a PE ratio of 14.13, a price-to-earnings-growth ratio of 0.93 and a beta of 1.22.

Select Medical declared that its Board of Directors has initiated a stock repurchase program on Thursday, February 19th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the health services provider to buy up to 49.5% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

Select Medical Announces Dividend

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

Institutional Trading of Select Medical

Hedge funds have recently made changes to their positions in the company. Royal Bank of Canada grew its holdings in shares of Select Medical by 8.5% during the first quarter. Royal Bank of Canada now owns 95,771 shares of the health services provider’s stock worth $1,599,000 after purchasing an additional 7,502 shares during the last quarter. AQR Capital Management LLC increased its position in shares of Select Medical by 96.6% during the first quarter. AQR Capital Management LLC now owns 33,894 shares of the health services provider’s stock worth $566,000 after buying an additional 16,656 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Select Medical by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 64,400 shares of the health services provider’s stock worth $1,075,000 after acquiring an additional 2,809 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Select Medical in the first quarter worth approximately $220,000. Finally, Goldman Sachs Group Inc. boosted its stake in Select Medical by 25.3% during the first quarter. Goldman Sachs Group Inc. now owns 728,689 shares of the health services provider’s stock worth $12,169,000 after acquiring an additional 147,183 shares in the last quarter. 89.48% of the stock is owned by institutional investors and hedge funds.

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.