Select Medical (NYSE:SEM) Upgraded at Wall Street Zen

Wall Street Zen upgraded shares of Select Medical (NYSE:SEM) from a hold rating to a buy rating in a research report sent to investors on Sunday morning.

Several other research firms also recently weighed in on SEM. Zacks Research downgraded shares of Select Medical from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th. Royal Bank Of Canada lowered their price target on Select Medical from $20.00 to $19.00 and set an “outperform” rating for the company in a research report on Monday, February 23rd. Weiss Ratings raised Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 20th. Finally, Mizuho set a $17.00 target price on Select Medical in a research note on Monday, November 3rd. Three equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Select Medical presently has a consensus rating of “Hold” and an average price target of $15.63.

Select Medical Stock Performance

NYSE SEM opened at $16.25 on Friday. The stock has a fifty day simple moving average of $15.31 and a 200-day simple moving average of $14.23. 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 stock has a market cap of $2.02 billion, a PE ratio of 14.13, a P/E/G ratio of 0.85 and a beta of 1.22. Select Medical has a twelve month low of $11.65 and a twelve month high of $18.60.

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 analysts’ consensus estimates of $0.23 by ($0.07). Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The company 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 earned $0.18 EPS. The company’s quarterly revenue 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. Equities analysts anticipate that Select Medical will post 1.17 earnings per share for the current year.

Select Medical announced that its Board of Directors has authorized a stock buyback program 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 buy up to 49.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Select Medical Announces Dividend

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 paid a dividend of $0.0625 per share. This represents a $0.25 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Monday, March 2nd. Select Medical’s payout ratio is presently 21.74%.

Institutional Investors Weigh In On Select Medical

Large investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Select Medical in the 4th quarter valued at $28,000. Beartown Capital Management LLC acquired a new stake in Select Medical in the fourth quarter valued at $2,970,000. State of Tennessee Department of Treasury raised its stake in Select Medical by 33.2% in the fourth quarter. State of Tennessee Department of Treasury now owns 63,307 shares of the health services provider’s stock valued at $953,000 after buying an additional 15,787 shares in the last quarter. XTX Topco Ltd lifted its holdings in Select Medical by 394.2% during the 4th quarter. XTX Topco Ltd now owns 138,229 shares of the health services provider’s stock worth $2,053,000 after buying an additional 110,257 shares during the last quarter. Finally, nVerses Capital LLC acquired a new position in shares of Select Medical during the 4th quarter worth about $163,000. 89.48% of the stock is owned by hedge funds and other institutional investors.

More Select Medical News

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

• Positive Sentiment: Definitive merger agreement — a consortium led by Robert A. Ortenzio, Martin F. Jackson and WCAS will pay $16.50 per share in cash, implying ~ $3.9B enterprise value; approved by disinterested directors and overseen by a special committee. The deal is not subject to a financing condition and some insiders will roll equity, which reduces closing risk and supports the stock moving toward the deal price. Press Release — Company Merger Announcement
• Positive Sentiment: Market / arbitrage reaction — the fixed cash consideration typically pulls trading toward the offer price; commentary and trade flows (including hedge fund repositioning) have pushed the stock higher as investors weigh closing probability and timing. QuiverQuant Analysis
• Neutral Sentiment: Timing and approvals — Select Medical expects the transaction to close in mid-2026 subject to unaffiliated shareholder and regulatory approvals; analyst coverage reflects the deal price as the primary valuation anchor. Seeking Alpha — Deal Coverage
• Neutral Sentiment: Analyst positioning — RBC reiterated a sector perform rating and set a $16.50 target (aligned with the deal price), leaving little upside beyond the offer and signaling limited analyst-driven re-rating. Benzinga — Analyst Note
• Negative Sentiment: Shareholder litigation risk — multiple law firms (Monteverde & Associates, Brodsky & Smith, Halper Sadeh, Ademi LLP) have announced investigations alleging potential fiduciary breaches or unfair pricing tied to the management-led buyout. These actions can delay closing, increase deal costs, or lead to renegotiation. Monteverde Alert Brodsky & Smith Notice Halper Sadeh Alert Ademi LLP Alert

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.