Wall Street Zen Downgrades Select Medical (NYSE:SEM) to Hold

Select Medical (NYSE:SEM) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday.

A number of other equities analysts also recently weighed in on the stock. Benchmark reaffirmed a “buy” rating on shares of Select Medical in a research note on Monday, October 27th. Weiss Ratings restated a “sell (d+)” rating on shares of Select Medical in a research report on Wednesday, January 21st. Finally, Mizuho set a $17.00 price objective on Select Medical in a report on Monday, November 3rd. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $17.80.

Select Medical Trading Down 6.5%

Shares of SEM opened at $15.04 on Friday. 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 company has a market cap of $1.86 billion, a price-to-earnings ratio of 13.07, a PEG ratio of 0.54 and a beta of 1.25. The stock has a fifty day moving average price of $15.31 and a two-hundred day moving average price of $14.09. Select Medical has a 52-week low of $11.65 and a 52-week high of $19.40.

Select Medical (NYSE:SEM) last announced its earnings results 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 analyst estimates of $1.36 billion. During the same quarter last year, the business posted $0.18 earnings per share. 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. Analysts predict that Select Medical will post 1.17 EPS for the current fiscal year.

Select Medical announced that its Board of Directors has authorized a share repurchase plan on Thursday, February 19th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits 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 board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Select Medical

Institutional investors and hedge funds have recently made changes to their positions in the company. Beartown Capital Management LLC bought a new stake in shares of Select Medical in the 4th quarter valued at $2,970,000. State of Tennessee Department of Treasury grew its stake in Select Medical by 33.2% in the fourth quarter. State of Tennessee Department of Treasury now owns 63,307 shares of the health services provider’s stock valued at $953,000 after acquiring an additional 15,787 shares during the period. XTX Topco Ltd increased its holdings in shares of Select Medical by 394.2% in the fourth quarter. XTX Topco Ltd now owns 138,229 shares of the health services provider’s stock worth $2,053,000 after acquiring an additional 110,257 shares in the last quarter. nVerses Capital LLC acquired a new stake in shares of Select Medical during the fourth quarter worth about $163,000. Finally, VARCOV Co. bought a new position in shares of Select Medical during the 4th quarter valued at about $386,000. Institutional investors and hedge funds own 89.48% of the company’s stock.

More Select Medical News

Here are the key news stories impacting Select Medical this week:

• Positive Sentiment: Board authorized a large share buyback — a $1.0 billion repurchase plan that could cover up to ~49.5% of outstanding shares; this signals management thinks the stock is undervalued and supports earnings per share. RTT News: Buyback
• Positive Sentiment: Board declared a quarterly cash dividend of $0.0625 per share (annualized yield ~1.7%), adding a steady return component for income-focused holders. PR Newswire: Q4 results & dividend
• Positive Sentiment: Top-line beat and operating profit rebound — Q4 revenue grew 6.4% to $1.40B (above estimates) and operating profit improved materially, showing service demand strength in key segments. QuiverQuant: Q4 results
• Neutral Sentiment: FY‑2026 guidance is roughly in line with consensus on revenue but EPS guidance (1.22–1.32) sits at the low end vs. consensus (~1.32), leaving upside limited unless margins improve. PR Newswire: Guidance
• Neutral Sentiment: Full earnings call transcript is available for details on expense drivers and segment trends — useful for investors deciding whether the EPS shortfall is temporary. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: EPS missed estimates — reported $0.16 vs. consensus ~$0.23, weighed by rising expenses and margin pressure; that miss is the primary near-term driver of the stock decline. Zacks: EPS miss
• Negative Sentiment: Weak cash flow and lower net income — operating cash fell sharply year-over-year and cash on hand declined, which raises near-term financial flexibility concerns despite the buyback plan. QuiverQuant: Cash flow & balance sheet

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.