Select Medical (NYSE:SEM) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Select Medical (NYSE:SEM) from a buy rating to a hold rating in a research note published on Monday morning.

SEM has been the subject of several other reports. Zacks Research cut Select Medical from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Weiss Ratings raised shares of Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, February 20th. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $16.50 price objective (down from $19.00) on shares of Select Medical in a report on Tuesday, March 3rd. Finally, Benchmark cut shares of Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday, March 4th. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $15.63.

Select Medical Stock Down 0.3%

NYSE SEM opened at $16.22 on Monday. Select Medical has a twelve month low of $11.65 and a twelve month high of $18.60. The stock has a market cap of $2.01 billion, a PE ratio of 14.10, a PEG ratio of 0.93 and a beta of 1.22. The firm has a 50-day simple moving average of $15.47 and a 200 day simple moving average of $14.36. 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 issued its quarterly earnings results 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). 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 for the quarter, compared to the consensus estimate of $1.36 billion. During the same quarter in the prior year, the firm earned $0.18 earnings per share. The company’s revenue was up 6.4% on a year-over-year basis. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. On average, research analysts forecast that Select Medical will post 1.17 EPS for the current year.

Select Medical announced that its Board of Directors has approved a stock buyback plan 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 plans are generally a sign that the company’s board believes its shares are undervalued.

Select Medical Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Monday, March 2nd will be issued 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 dividend payout ratio (DPR) is presently 21.74%.

Hedge Funds Weigh In On Select Medical

Several institutional investors have recently added to or reduced their stakes in SEM. Quarry LP acquired a new stake in shares of Select Medical during the fourth quarter worth approximately $26,000. Quantbot Technologies LP acquired a new position in shares of Select Medical in the 3rd quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd bought a new stake in Select Medical during the 4th quarter worth approximately $28,000. MAI Capital Management increased its holdings in 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 valued at $37,000 after purchasing an additional 2,400 shares in the last quarter. Finally, Hantz Financial Services Inc. raised its position in Select Medical by 214.7% in the 4th quarter. Hantz Financial Services Inc. now owns 2,549 shares of the health services provider’s stock valued at $38,000 after purchasing an additional 1,739 shares during the last quarter. 89.48% of the stock is owned by institutional investors.

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.