Zacks Research Expects Reduced Earnings for Select Medical

Key Points

• Zacks Research has lowered its Q3 2025 earnings per share forecast for Select Medical Holdings Corporation from $0.20 to $0.18, while the consensus estimate for full-year earnings remains at $1.17 per share.
• Select Medical recently announced a quarterly dividend of $0.0625 per share, representing an annual yield of 2.0%, with a dividend payout ratio of 23.58%.
• The company is authorized to repurchase up to $1.00 billion in shares, indicating management's belief that the stock may be undervalued.

Select Medical Holdings Corporation (NYSE:SEM - Free Report) - Equities research analysts at Zacks Research reduced their Q3 2025 EPS estimates for shares of Select Medical in a research report issued on Thursday, August 14th. Zacks Research analyst Team now anticipates that the health services provider will post earnings of $0.18 per share for the quarter, down from their prior estimate of $0.20. The consensus estimate for Select Medical's current full-year earnings is $1.17 per share. Zacks Research also issued estimates for Select Medical's Q4 2025 earnings at $0.26 EPS, Q1 2026 earnings at $0.34 EPS, Q2 2026 earnings at $0.32 EPS, Q4 2026 earnings at $0.37 EPS, Q2 2027 earnings at $0.41 EPS and FY2027 earnings at $1.75 EPS.

A number of other equities analysts have also recently commented on SEM. UBS Group reaffirmed a "neutral" rating and set a $14.00 price target (down from $15.00) on shares of Select Medical in a research note on Monday, August 4th. Royal Bank Of Canada reduced their price target on shares of Select Medical from $23.00 to $19.00 and set an "outperform" rating for the company in a report on Wednesday, May 7th. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $20.25.

Select Medical Price Performance

Shares of NYSE:SEM traded up $0.4150 on Monday, reaching $13.4050. The company's stock had a trading volume of 985,317 shares, compared to its average volume of 1,267,498. Select Medical has a 52-week low of $11.65 and a 52-week high of $40.98. The company has a market cap of $1.66 billion, a P/E ratio of 12.65, a PEG ratio of 0.69 and a beta of 1.25. The company has a 50-day simple moving average of $14.04 and a 200 day simple moving average of $15.74. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.15 and a current ratio of 1.15.

Select Medical (NYSE:SEM - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The health services provider reported $0.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.28 by $0.04. Select Medical had a net margin of 2.37% and a return on equity of 8.87%. The company had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.35 billion. During the same period in the previous year, the firm posted $0.60 EPS. Select Medical's revenue for the quarter was up 4.5% compared to the same quarter last year. Select Medical has set its FY 2025 guidance at 1.090-1.19 EPS.

Select Medical Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 28th. Stockholders of record on Wednesday, August 13th will be issued a $0.0625 dividend. This represents a $0.25 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Wednesday, August 13th. Select Medical's dividend payout ratio is 23.58%.

Select Medical declared that its Board of Directors has authorized a stock buyback program on Thursday, May 1st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the health services provider to reacquire up to 42.6% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Institutional Trading of Select Medical

A number of hedge funds have recently added to or reduced their stakes in SEM. LPL Financial LLC boosted its holdings in Select Medical by 2.0% during the fourth quarter. LPL Financial LLC now owns 31,441 shares of the health services provider's stock worth $593,000 after buying an additional 619 shares in the last quarter. Envestnet Asset Management Inc. raised its position in shares of Select Medical by 6.3% in the fourth quarter. Envestnet Asset Management Inc. now owns 366,033 shares of the health services provider's stock valued at $6,900,000 after buying an additional 21,771 shares during the last quarter. Bank of Montreal Can increased its position in Select Medical by 4.5% during the fourth quarter. Bank of Montreal Can now owns 20,030 shares of the health services provider's stock worth $378,000 after purchasing an additional 867 shares during the last quarter. Renaissance Technologies LLC increased its position in Select Medical by 1,206.4% during the fourth quarter. Renaissance Technologies LLC now owns 305,700 shares of the health services provider's stock worth $5,762,000 after purchasing an additional 282,300 shares during the last quarter. Finally, Raymond James Financial Inc. acquired a new stake in Select Medical during the fourth quarter worth about $5,858,000. 89.48% of the stock is owned by hedge funds and other institutional investors.

About Select Medical

Select Medical Holdings Corporation, through its subsidiaries, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. It operates in four segments: Critical Illness Recovery Hospital, Rehabilitation Hospital, Outpatient Rehabilitation, and Concentra.