Select Medical (NYSE:SEM) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Select Medical (NYSE:SEM) from "strong sell" to "hold" — the street consensus is now a Hold with an average target price of $15.63.
• Select Medical missed Q1 EPS ($0.36 vs. $0.43 expected) while revenue rose 5% year‑over‑year to $1.42 billion, and management set FY2026 guidance of 1.220–1.320 EPS (analysts average 1.27).
• The board authorized a $1.00 billion share buyback (up to 49.5% of outstanding shares), and institutional investors own about 89.48% of the stock with several large funds increasing stakes.

Select Medical (NYSE:SEM - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Monday,Zacks.com reports.

A number of other research analysts have also issued reports on SEM. Benchmark lowered shares of Select Medical from a "buy" rating to a "hold" rating in a research report on Wednesday, March 4th. Wall Street Zen downgraded shares of Select Medical from a "buy" rating to a "hold" rating in a research report on Monday, March 9th. 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 restated a "sector perform" rating and set a $16.50 price objective (down from $19.00) on shares of Select Medical in a research note on Tuesday, March 3rd. One research analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $15.63.

Select Medical Stock Performance

Shares of NYSE SEM opened at $16.45 on Monday. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.15 and a quick ratio of 1.15. The firm has a market cap of $2.04 billion, a price-to-earnings ratio of 15.51, a P/E/G ratio of 0.94 and a beta of 1.02. The stock's fifty day moving average price is $16.16 and its two-hundred day moving average price is $15.26. Select Medical has a one year low of $11.65 and a one year high of $16.99.

Select Medical (NYSE:SEM - Get Free Report) last announced its earnings results on Thursday, April 30th. The health services provider reported $0.36 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.43 by ($0.07). Select Medical had a net margin of 2.42% and a return on equity of 6.62%. The business had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.41 billion. During the same period in the previous year, the firm posted $0.44 EPS. The company's revenue was up 5.0% compared to the same quarter last year. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. On average, equities analysts forecast that Select Medical will post 1.27 EPS for the current year.

Select Medical announced that its board has initiated a stock buyback program on Thursday, February 19th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the health services provider to reacquire up to 49.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Select Medical

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD boosted its holdings in shares of Select Medical by 4.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 16,606,269 shares of the health services provider's stock valued at $246,604,000 after purchasing an additional 684,695 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Select Medical by 2.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 5,333,595 shares of the health services provider's stock worth $79,205,000 after buying an additional 136,252 shares during the last quarter. State Street Corp boosted its stake in Select Medical by 1.3% in the second quarter. State Street Corp now owns 4,253,793 shares of the health services provider's stock valued at $64,573,000 after buying an additional 55,686 shares in the last quarter. Hsbc Holdings PLC boosted its stake in Select Medical by 7,554.6% in the first quarter. Hsbc Holdings PLC now owns 2,245,163 shares of the health services provider's stock valued at $36,596,000 after buying an additional 2,215,832 shares in the last quarter. Finally, Western Standard LLC grew its position in Select Medical by 95.6% in the fourth quarter. Western Standard LLC now owns 2,064,021 shares of the health services provider's stock valued at $30,651,000 after acquiring an additional 1,008,664 shares during the last quarter. 89.48% of the stock is currently owned by institutional investors.

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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