Select Medical Holdings Corporation (NYSE:SEM) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Select Medical has an average analyst rating of "Hold" from six analysts (1 sell, 4 hold, 1 buy) with a 12‑month consensus target of $15.63 and recent price‑target cuts (RBC $16.50 from $19.00).
• The company missed Q4 EPS ($0.16 vs. $0.23 expected) but beat on revenue ($1.40B vs. $1.36B), set FY2026 guidance of $1.22–$1.32 EPS (consensus ~1.27), and the board approved a $1.00 billion share repurchase (up to 49.5% of shares) while maintaining a quarterly dividend that annualizes to $0.25 (≈1.5% yield).

Select Medical Holdings Corporation (NYSE:SEM - Get Free Report) has received an average rating of "Hold" from the six analysts that are presently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, four have given a hold recommendation and one has given a buy recommendation to the company. The average 12 month target price among analysts that have covered the stock in the last year is $15.6250.

SEM has been the topic of a number of analyst reports. Wall Street Zen lowered Select Medical from a "buy" rating to a "hold" rating in a research report on Monday, March 9th. Zacks Research lowered Select Medical from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 26th. Benchmark lowered Select Medical from a "buy" rating to a "hold" rating in a research report on Wednesday, March 4th. Weiss Ratings raised Select Medical from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, February 20th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $16.50 price target (down from $19.00) on shares of Select Medical in a research report on Tuesday, March 3rd.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Quarry LP purchased a new position in shares of Select Medical in the 4th quarter valued at about $26,000. Quantbot Technologies LP purchased a new position in shares of Select Medical in the 3rd quarter valued at about $27,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Select Medical in the 4th quarter valued at about $28,000. Hantz Financial Services Inc. increased its holdings in shares of 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 acquiring an additional 1,739 shares during the last quarter. Finally, Smartleaf Asset Management LLC increased 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 acquiring an additional 788 shares during the last quarter. Hedge funds and other institutional investors own 89.48% of the company's stock.

Select Medical Price Performance

SEM opened at $16.45 on Friday. The stock's 50-day moving average price is $16.12 and its 200 day moving average price is $15.15. Select Medical has a 12-month low of $11.65 and a 12-month high of $18.60. 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 firm has a market cap of $2.04 billion, a price-to-earnings ratio of 14.30, a PEG ratio of 0.94 and a beta of 1.12.

Select Medical (NYSE:SEM - Get Free Report) last posted its 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). The firm had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.36 billion. Select Medical had a return on equity of 7.26% and a net margin of 2.68%.Select Medical's revenue was up 6.4% on a year-over-year basis. During the same period in the previous year, the company posted $0.18 EPS. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. As a group, sell-side analysts expect that Select Medical will post 1.27 earnings per share for the current year.

Select Medical declared that its board has approved a share repurchase 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 reacquire up to 49.5% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its stock is undervalued.

Select Medical Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, March 12th. Shareholders of record on Monday, March 2nd were given a $0.0625 dividend. The ex-dividend date of this dividend 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%.

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.

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