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

Wall Street Zen lowered shares of Select Medical (NYSE:SEM) from a buy rating to a hold rating in a report issued on Saturday.

A number of other brokerages have also recently issued reports on SEM. Mizuho set a $17.00 target price on Select Medical in a report on Monday, November 3rd. Weiss Ratings reissued a “sell (d+)” rating on shares of Select Medical in a research note on Wednesday, January 21st. Finally, Benchmark reaffirmed a “buy” rating on shares of Select Medical in a research report on Monday, October 27th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $16.25.

Select Medical Stock Down 1.2%

Shares of NYSE SEM opened at $14.84 on Friday. The stock has a market capitalization of $1.84 billion, a PE ratio of 12.90, a P/E/G ratio of 0.54 and a beta of 1.25. 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 firm has a fifty day moving average of $15.29 and a 200-day moving average of $14.11. Select Medical has a 52-week low of $11.65 and a 52-week high of $19.40.

Select Medical (NYSE:SEM) last issued its 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 firm 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%. Select Medical’s revenue was up 6.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.18 EPS. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. On average, analysts anticipate that Select Medical will post 1.17 EPS for the current year.

Select Medical Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Monday, March 2nd will be issued a $0.0625 dividend. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Monday, March 2nd. Select Medical’s payout ratio is presently 21.74%.

Select Medical declared that its Board of Directors has initiated a share buyback program 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 repurchase up to 49.5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On Select Medical

A number of institutional investors have recently bought and sold shares of SEM. Mitsubishi UFJ Trust & Banking Corp lifted its position in shares of Select Medical by 889.7% in the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 64,094 shares of the health services provider’s stock valued at $823,000 after acquiring an additional 57,618 shares in the last quarter. Y Intercept Hong Kong Ltd purchased a new stake in shares of Select Medical in the second quarter valued at $1,319,000. Public Sector Pension Investment Board boosted its position in shares of Select Medical by 21.3% in the third quarter. Public Sector Pension Investment Board now owns 430,472 shares of the health services provider’s stock worth $5,527,000 after buying an additional 75,530 shares during the period. Econ Financial Services Corp purchased a new position in shares of Select Medical during the second quarter valued at $822,000. Finally, Segall Bryant & Hamill LLC raised its position in Select Medical by 38.3% during the second quarter. Segall Bryant & Hamill LLC now owns 139,435 shares of the health services provider’s stock valued at $2,117,000 after buying an additional 38,607 shares during the period. Hedge funds and other institutional investors 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.