Select Medical (NYSE:SEM) Updates FY 2026 Earnings Guidance

Select Medical (NYSE:SEM) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 1.220-1.320 for the period, compared to the consensus earnings per share estimate of 1.260. The company issued revenue guidance of $5.6 billion-$5.8 billion, compared to the consensus revenue estimate of $5.7 billion.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Wall Street Zen downgraded Select Medical from a “buy” rating to a “hold” rating in a research report on Monday, March 9th. Zacks Research downgraded Select Medical from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Weiss Ratings upgraded Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 20th. Benchmark downgraded Select Medical from a “buy” rating to a “hold” rating in a research report on Wednesday, March 4th. Finally, Royal Bank Of Canada restated a “sector perform” rating and issued a $16.50 price objective (down from $19.00) on shares of Select Medical in a research report on Tuesday, March 3rd. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $15.63.

Select Medical Price Performance

Shares of NYSE:SEM traded up $0.05 during mid-day trading on Friday, reaching $16.46. The stock had a trading volume of 1,658,249 shares, compared to its average volume of 1,525,489. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.89. The company has a market cap of $2.04 billion, a P/E ratio of 14.31, a price-to-earnings-growth ratio of 0.94 and a beta of 1.02. Select Medical has a 1 year low of $11.65 and a 1 year high of $16.99. The business’s 50 day moving average price is $16.13 and its 200 day moving average price is $15.22.

Select Medical (NYSE:SEM) last posted its earnings results on Thursday, April 30th. The health services provider reported $0.36 EPS for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.07). The firm had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $1.41 billion. Select Medical had a return on equity of 6.69% and a net margin of 2.42%.Select Medical’s quarterly revenue was up 5.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.44 earnings per share. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. Research analysts expect that Select Medical will post 1.27 EPS for the current fiscal year.

Select Medical Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 28th. Investors of record on Thursday, May 14th will be given a $0.0625 dividend. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Thursday, May 14th. Select Medical’s payout ratio is currently 21.74%.

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

Select Medical News Roundup

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

• Positive Sentiment: Take‑private transaction remains a near‑term catalyst (potential premium to public price) even as details and timing are debated. SEM Q1 deep dive: Margin pressures and take-private deal shape outlook
• Positive Sentiment: Board declared a quarterly cash dividend ($0.0625 per share; ex‑dividend May 14), which supports income investors and can buoy demand into the record date. Select Medical Announces Results and Cash Dividend
• Positive Sentiment: Revenue edged above expectations (Q1 revenue $1.42B, ~5% YoY growth), showing demand resilience across the business. Select Medical’s Q1 CY2026: Beats On Revenue
• Neutral Sentiment: FY‑2026 guidance was provided (EPS $1.22–1.32; revenue ~$5.6–5.8B), roughly in line with consensus — limits downside from a guidance shock but leaves little upside absent margin improvement. Select Medical Q1 Press Release and Guidance
• Negative Sentiment: Q1 EPS missed expectations ($0.36 vs. $0.43 est.), driven by margin pressure; net margin and ROE remain modest, which raises near‑term profitability concerns. Select Medical Lags Q1 Earnings Estimates
• Negative Sentiment: Two shareholder‑law‑firm probes allege potential board fiduciary breaches related to the proposed take‑private deal, adding legal and execution risk to the transaction and potentially delaying or complicating a sale. Johnson Fistel Investigates Potential Board Fiduciary Duty Breaches

Institutional Trading of Select Medical

A number of institutional investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD lifted its position in Select Medical by 4.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 16,606,269 shares of the health services provider’s stock worth $246,604,000 after buying an additional 684,695 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in Select Medical by 2.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 5,333,595 shares of the health services provider’s stock worth $79,205,000 after buying an additional 136,252 shares during the last quarter. State Street Corp lifted its position in Select Medical by 1.3% in the second quarter. State Street Corp now owns 4,253,793 shares of the health services provider’s stock worth $64,573,000 after buying an additional 55,686 shares during the last quarter. 8 Knots Management LLC bought a new position in shares of Select Medical during the second quarter valued at approximately $26,568,000. Finally, Charles Schwab Investment Management Inc. raised its holdings in shares of Select Medical by 1.4% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,686,737 shares of the health services provider’s stock worth $25,048,000 after buying an additional 22,643 shares during the period. 89.48% of the stock is currently owned by institutional investors.

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.