Select Medical (NYSE:SEM) Announces Quarterly Earnings Results

Select Medical (NYSE:SEM) issued its quarterly earnings results on Thursday. The health services provider reported $0.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.07), FiscalAI reports. The business had revenue of $1.42 billion for the quarter, compared to analysts’ expectations of $1.41 billion. Select Medical had a return on equity of 7.26% and a net margin of 2.68%.The firm’s revenue for the quarter was up 5.0% on a year-over-year basis. During the same quarter last year, the company earned $0.44 earnings per share. Select Medical updated its FY 2026 guidance to 1.220-1.320 EPS.

Select Medical Stock Down 0.3%

NYSE SEM traded down $0.06 during trading on Thursday, reaching $16.44. 1,671,689 shares of the company’s stock were exchanged, compared to its average volume of 1,490,928. The company has a 50 day moving average price of $16.13 and a two-hundred day moving average price of $15.22. The stock has a market cap of $2.04 billion, a P/E ratio of 14.29, a price-to-earnings-growth ratio of 0.95 and a beta of 1.12. Select Medical has a 1 year low of $11.65 and a 1 year high of $18.53. 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 Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 12th. Shareholders of record on Monday, March 2nd were paid a $0.0625 dividend. The ex-dividend date was Monday, March 2nd. This represents a $0.25 dividend on an annualized basis and a yield of 1.5%. Select Medical’s dividend payout ratio (DPR) is currently 21.74%.

Institutional Investors Weigh In On Select Medical

Institutional investors have recently added to or reduced their stakes in the business. Quarry LP purchased a new position in Select Medical in the fourth quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Select Medical during the 4th quarter worth approximately $28,000. Quantbot Technologies LP acquired a new position in shares of Select Medical in the 3rd quarter valued at $27,000. Smartleaf Asset Management LLC boosted its holdings in shares of Select Medical by 37.8% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,870 shares of the health services provider’s stock valued at $43,000 after buying an additional 788 shares in the last quarter. Finally, Wilmington Savings Fund Society FSB grew its position in shares of Select Medical by 20.9% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 5,784 shares of the health services provider’s stock valued at $74,000 after buying an additional 999 shares during the last quarter. Hedge funds and other institutional investors own 89.48% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. 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 report on Tuesday, March 3rd. Weiss Ratings raised shares of Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 20th. Zacks Research downgraded shares of Select Medical from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 26th. Benchmark cut Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday, March 4th. Finally, Wall Street Zen lowered Select Medical from a “buy” rating to a “hold” rating in a report on Monday, March 9th. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $15.63.

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

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.