Select Medical (NYSE:SEM) Sees Large Volume Increase - Here's Why

Key Points

• Trading volume surged 95% to about 3.41 million shares on Wednesday, with the stock trading around $16.46.
• Analyst sentiment has cooled to a consensus "Hold" rating with a $15.63 average price target after several downgrades, leaving the target below the current share price.
• Select Medical missed quarterly EPS estimates ($0.16 vs. $0.23), set FY2026 guidance of $1.22–$1.32 EPS (street expects $1.27), and announced a $0.25 annual dividend (1.5% yield) plus a $1.0 billion share repurchase authorization (~49.5% of shares).

Shares of Select Medical Holdings Corporation (NYSE:SEM - Get Free Report) saw an uptick in trading volume on Wednesday . 3,406,739 shares traded hands during mid-day trading, an increase of 95% from the previous session's volume of 1,748,550 shares.The stock last traded at $16.4550 and had previously closed at $16.45.

Wall Street Analysts Forecast Growth

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

Select Medical Price Performance

The firm has a market capitalization of $2.04 billion, a PE ratio of 14.31, a price-to-earnings-growth ratio of 0.94 and a beta of 1.12. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.04 and a current ratio of 1.04. The business's 50 day moving average is $16.12 and its two-hundred day moving average is $15.20.

Select Medical (NYSE:SEM - Get Free Report) last released its quarterly earnings data 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). Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The business had revenue of $1.40 billion during the quarter, compared to analysts' expectations of $1.36 billion. During the same quarter in the prior year, the firm posted $0.18 earnings per share. The firm's quarterly revenue was up 6.4% on a year-over-year basis. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. Equities research analysts anticipate that Select Medical Holdings Corporation will post 1.27 earnings per share for the current fiscal year.

Select Medical Announces Dividend

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

Select Medical declared that its board has authorized a share repurchase plan on Thursday, February 19th that allows the company to repurchase $1.00 billion in 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 generally a sign that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SEM. Smartleaf Asset Management LLC grew its position in shares of Select Medical by 37.8% during the 4th quarter. Smartleaf Asset Management LLC now owns 2,870 shares of the health services provider's stock valued at $43,000 after purchasing an additional 788 shares in the last quarter. State of Alaska Department of Revenue grew its position in shares of Select Medical by 1.5% during the 4th quarter. State of Alaska Department of Revenue now owns 63,370 shares of the health services provider's stock valued at $940,000 after purchasing an additional 935 shares in the last quarter. Wilmington Savings Fund Society FSB grew its position in shares of Select Medical by 20.9% during 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 purchasing an additional 999 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH grew its position in shares of Select Medical by 9.7% during the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 11,475 shares of the health services provider's stock valued at $171,000 after purchasing an additional 1,014 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund grew its position in shares of Select Medical by 5.1% during the 3rd quarter. Oregon Public Employees Retirement Fund now owns 24,816 shares of the health services provider's stock valued at $319,000 after purchasing an additional 1,200 shares in the last quarter. 89.48% of the stock is currently owned by hedge funds and other 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.

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