Select Medical (NYSE:SEM) Lowered to Strong Sell Rating by Zacks Research

Zacks Research lowered shares of Select Medical (NYSE:SEM) from a hold rating to a strong sell rating in a research note issued to investors on Thursday,Zacks.com reports.

SEM has been the subject of a number of other research reports. Wall Street Zen lowered Select Medical from a “buy” rating to a “hold” rating in a research note on Saturday, February 21st. 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. Mizuho set a $17.00 price target on shares of Select Medical in a research note on Monday, November 3rd. Finally, Royal Bank Of Canada cut their price objective on Select Medical from $20.00 to $19.00 and set an “outperform” rating on the stock in a research report on Monday. Four equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Select Medical presently has a consensus rating of “Hold” and a consensus target price of $16.25.

Select Medical Trading Up 0.1%

Select Medical stock traded up $0.02 during trading hours on Thursday, reaching $14.94. The stock had a trading volume of 916,343 shares, compared to its average volume of 974,834. The company has a fifty day simple moving average of $15.28 and a 200-day simple moving average of $14.16. Select Medical has a 52 week low of $11.65 and a 52 week high of $18.60. The stock has a market cap of $1.85 billion, a PE ratio of 12.99, a PEG ratio of 0.85 and a beta of 1.25. 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 posted 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 return on equity of 7.26% and a net margin of 2.68%.The firm had revenue of $1.40 billion for the quarter, compared to analysts’ expectations of $1.36 billion. During the same quarter in the prior year, the company posted $0.18 earnings per share. The business’s revenue for the quarter was up 6.4% on a year-over-year basis. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. Analysts forecast that Select Medical will post 1.17 EPS for the current fiscal year.

Select Medical Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Monday, March 2nd will be given a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Monday, March 2nd. Select Medical’s dividend payout ratio (DPR) is 21.74%.

Select Medical declared that its Board of Directors has initiated a share buyback plan on Thursday, February 19th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the health services provider to reacquire up to 49.5% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On Select Medical

Institutional investors have recently modified their holdings of the stock. Mitsubishi UFJ Trust & Banking Corp raised its holdings in Select Medical by 889.7% in the third quarter. Mitsubishi UFJ Trust & Banking Corp now owns 64,094 shares of the health services provider’s stock worth $823,000 after buying an additional 57,618 shares during the last quarter. Y Intercept Hong Kong Ltd purchased a new stake in shares of Select Medical during the second quarter valued at approximately $1,319,000. Public Sector Pension Investment Board increased its position in shares of Select Medical by 21.3% during the third quarter. Public Sector Pension Investment Board now owns 430,472 shares of the health services provider’s stock valued at $5,527,000 after acquiring an additional 75,530 shares in the last quarter. Dana Investment Advisors Inc. raised its holdings in Select Medical by 52.9% in the 3rd quarter. Dana Investment Advisors Inc. now owns 524,621 shares of the health services provider’s stock worth $6,736,000 after acquiring an additional 181,436 shares during the last quarter. Finally, Segall Bryant & Hamill LLC lifted its position in Select Medical by 38.3% in the 2nd quarter. Segall Bryant & Hamill LLC now owns 139,435 shares of the health services provider’s stock valued at $2,117,000 after acquiring an additional 38,607 shares in the last quarter. 89.48% of the stock is owned by hedge funds and other institutional investors.

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.