Royce & Associates LP Grows Stock Holdings in Select Medical Holdings Corporation $SEM

Royce & Associates LP grew its position in Select Medical Holdings Corporation (NYSE:SEM) by 9.8% during the third quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 439,505 shares of the health services provider’s stock after buying an additional 39,300 shares during the period. Royce & Associates LP owned 0.35% of Select Medical worth $5,643,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Advisors Asset Management Inc. boosted its stake in Select Medical by 13.2% in the second quarter. Advisors Asset Management Inc. now owns 7,135 shares of the health services provider’s stock valued at $108,000 after acquiring an additional 834 shares in the last quarter. Wilmington Savings Fund Society FSB boosted its position in shares of Select Medical by 20.9% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 5,784 shares of the health services provider’s stock worth $74,000 after purchasing an additional 999 shares in the last quarter. Oregon Public Employees Retirement Fund grew its stake in Select Medical by 5.1% during the 3rd quarter. Oregon Public Employees Retirement Fund now owns 24,816 shares of the health services provider’s stock worth $319,000 after buying an additional 1,200 shares during the last quarter. PNC Financial Services Group Inc. increased its position in Select Medical by 15.9% during the 2nd quarter. PNC Financial Services Group Inc. now owns 8,828 shares of the health services provider’s stock valued at $134,000 after buying an additional 1,208 shares in the last quarter. Finally, California State Teachers Retirement System raised its stake in Select Medical by 1.4% in the second quarter. California State Teachers Retirement System now owns 102,230 shares of the health services provider’s stock valued at $1,552,000 after buying an additional 1,418 shares during the last quarter. Hedge funds and other institutional investors own 89.48% of the company’s stock.

Select Medical Stock Down 0.1%

SEM stock opened at $16.24 on Thursday. The company has a market capitalization of $2.01 billion, a P/E ratio of 14.12, a price-to-earnings-growth ratio of 0.92 and a beta of 1.22. Select Medical Holdings Corporation has a 12 month low of $11.65 and a 12 month high of $18.60. The firm’s fifty day simple moving average is $15.34 and its 200-day simple moving average is $14.24. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.04 and a quick ratio of 1.04.

Select Medical (NYSE:SEM) last issued its 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). The company had revenue of $1.40 billion during the quarter, compared to analysts’ expectations of $1.36 billion. Select Medical had a return on equity of 7.26% and a net margin of 2.68%.The firm’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.18 EPS. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. As a group, equities research analysts forecast that Select Medical Holdings Corporation will post 1.17 earnings per share for the current year.

Select Medical announced that its Board of Directors has initiated a share buyback program 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 shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its stock is undervalued.

Select Medical Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Monday, March 2nd will be given a dividend of $0.0625 per share. The ex-dividend date is 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 is currently 21.74%.

Key Select Medical News

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

• Positive Sentiment: Definitive take‑private agreement — Select Medical agreed to be acquired for $16.50 per share (implied enterprise value ~ $3.9B); the special committee approved the deal and closing is expected mid‑2026. This is the primary reason the shares moved higher as the market prices toward the deal value. Read More.
• Positive Sentiment: Merger‑arbitrage dynamics and deal stability — Market commentary notes the jump reflects merger‑arbitrage positioning; Select Medical said the merger is not subject to a financing condition and some insiders plan to roll equity, which lowers financing‑related closing risk. Read More.
• Positive Sentiment: Analyst debate on fairness/upside — Coverage (Zacks) flags that some analyst targets were higher than $16.50, so investors question whether the deal leaves upside on the table; that debate can drive short‑term trading interest and activism. Read More.
• Neutral Sentiment: Analyst/ratings updates — RBC kept a sector perform stance with a $16.50 target (now aligned with the deal price); Benchmark reaffirmed a “hold.” These keep public sell‑side guidance broadly in line with the transaction valuation. Read More.; Read More.
• Negative Sentiment: Kahn Swick & Foti investigation — Law firm KSF is probing whether the proposed sale price and process were adequate for Select Medical shareholders, signaling potential litigation or pressure to revisit terms. Read More.
• Negative Sentiment: Multiple shareholder law‑firm probes — Monteverde & Associates, Brodsky & Smith, Halper Sadeh, and Ademi LLP have each opened investigations alleging possible fiduciary breaches or unfair pricing; aggregated legal challenges increase execution risk and could delay or alter deal terms. Read More. | Read More. | Read More. | Read More.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Benchmark restated a “hold” rating on shares of Select Medical in a research note on Wednesday. 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. Wall Street Zen upgraded shares of Select Medical from a “hold” rating to a “buy” rating in a research note on Sunday. Zacks Research downgraded Select Medical from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Finally, Weiss Ratings upgraded Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 20th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $15.63.

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.