Short Interest in Select Medical Holdings Corporation (NYSE:SEM) Drops By 24.4%

Key Points

• Short interest fell 24.4% — short interest declined to 2,292,503 shares as of March 13 (about 2.2% of shares outstanding) with a short-interest ratio of roughly 0.4 days.
• Board authorized a $1.0 billion buyback that could repurchase up to 49.5% of shares, while institutional ownership is high (about 89.48%) and several hedge funds (e.g., 8 Knots, Millennium) recently added or increased stakes.
• Recent results showed an EPS miss ($0.16 vs. $0.23 expected) but revenue growth (Q revenue $1.40B vs. $1.36B expected); management set FY2026 guidance of 1.220–1.320 EPS and the Street consensus remains a Hold with a $15.63 target.

Select Medical Holdings Corporation (NYSE:SEM - Get Free Report) was the target of a large decrease in short interest in the month of March. As of March 13th, there was short interest totaling 2,292,503 shares, a decrease of 24.4% from the February 26th total of 3,030,414 shares. Approximately 2.2% of the shares of the company are sold short. Based on an average trading volume of 5,279,568 shares, the short-interest ratio is presently 0.4 days.

Institutional Trading of Select Medical

A number of hedge funds and other institutional investors have recently modified their holdings of SEM. 8 Knots Management LLC purchased a new position in shares of Select Medical during the 2nd quarter valued at $26,568,000. Millennium Management LLC increased its stake in Select Medical by 407.9% in the 3rd quarter. Millennium Management LLC now owns 1,590,339 shares of the health services provider's stock worth $20,420,000 after buying an additional 1,277,233 shares in the last quarter. Adage Capital Partners GP L.L.C. bought a new stake in Select Medical during the fourth quarter valued at about $17,603,000. Western Standard LLC bought a new stake in Select Medical during the third quarter valued at about $13,551,000. Finally, Eversept Partners LP purchased a new position in shares of Select Medical in the fourth quarter valued at about $13,456,000. 89.48% of the stock is owned by hedge funds and other institutional investors.

Select Medical Price Performance

Shares of Select Medical stock opened at $16.30 on Friday. The stock has a market cap of $2.02 billion, a P/E ratio of 14.17, a P/E/G ratio of 0.94 and a beta of 1.22. 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 stock's fifty day moving average is $15.74 and its 200 day moving average is $14.63. Select Medical has a one year low of $11.65 and a one year high of $18.60.

Select Medical (NYSE:SEM - Get Free Report) last issued its quarterly earnings results on Thursday, February 19th. The health services provider reported $0.16 EPS for the quarter, missing analysts' consensus estimates of $0.23 by ($0.07). Select Medical had a return on equity of 7.26% and a net margin of 2.68%.The company had revenue of $1.40 billion during the quarter, compared to analysts' expectations of $1.36 billion. During the same quarter in the previous year, the company earned $0.18 EPS. The business's quarterly revenue was up 6.4% compared to the same quarter last year. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. Sell-side analysts anticipate that Select Medical will post 1.17 earnings per share for the current year.

Select Medical declared that its Board of Directors has authorized a stock repurchase plan 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 shares through open market purchases. Shares buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Select Medical Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, March 12th. Shareholders of record on Monday, March 2nd were paid a dividend of $0.0625 per share. 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 presently 21.74%.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. Benchmark lowered shares of Select Medical from a "buy" rating to a "hold" rating in a research note on Wednesday, March 4th. Zacks Research downgraded Select Medical from a "hold" rating to a "strong sell" rating in a report on Thursday, February 26th. Royal Bank Of Canada restated a "sector perform" rating and set a $16.50 price target (down from $19.00) on shares of Select Medical in a research note on Tuesday, March 3rd. Wall Street Zen lowered shares of Select Medical from a "buy" rating to a "hold" rating in a research report on Monday, March 9th. Finally, Weiss Ratings upgraded shares of Select Medical from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, February 20th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Select Medical presently has a consensus rating of "Hold" and a consensus target price of $15.63.

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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