Select Medical (NYSE:SEM) Board Announces Share Buyback Program

Select Medical (NYSE:SEM) announced that its board has authorized a stock repurchase program on Thursday, February 19th, RTT News reports. The company plans to buyback $1.00 billion in outstanding shares. This buyback authorization allows the health services provider to buy up to 49.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on SEM. Mizuho set a $17.00 price target on Select Medical in a research report on Monday, November 3rd. Benchmark restated a “buy” rating on shares of Select Medical in a research report on Monday, October 27th. Weiss Ratings restated a “sell (d+)” rating on shares of Select Medical in a report on Wednesday, January 21st. Finally, Wall Street Zen upgraded shares of Select Medical from a “hold” rating to a “buy” rating in a report on Saturday, November 8th. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Select Medical currently has an average rating of “Moderate Buy” and a consensus price target of $17.80.

Select Medical Stock Down 1.5%

NYSE:SEM traded down $0.24 on Thursday, hitting $16.08. 1,276,291 shares of the company’s stock traded hands, compared to its average volume of 749,693. The company has a market cap of $1.99 billion, a PE ratio of 18.70, a price-to-earnings-growth ratio of 0.57 and a beta of 1.25. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 0.87. The firm has a 50-day moving average price of $15.32 and a 200-day moving average price of $14.04. Select Medical has a 1 year low of $11.65 and a 1 year high of $19.40.

Select Medical (NYSE:SEM) last issued its earnings results on Thursday, February 19th. The health services provider reported $0.16 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.07). Select Medical had a net margin of 2.05% and a return on equity of 7.41%. The company had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.36 billion. During the same period last year, the business earned $0.18 EPS. The company’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 analysts anticipate that Select Medical will post 1.17 EPS for the current fiscal year.

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.