Royce & Associates LP Boosts Stake in Select Medical Holdings Corporation $SEM

Royce & Associates LP raised its holdings in Select Medical Holdings Corporation (NYSE:SEM) by 9.8% in the third quarter, Holdings Channel reports. The fund owned 439,505 shares of the health services provider’s stock after buying an additional 39,300 shares during the period. Royce & Associates LP’s holdings in Select Medical were worth $5,643,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Quantbot Technologies LP purchased a new position in Select Medical during the third quarter worth approximately $27,000. MAI Capital Management increased its stake in shares of Select Medical by 48,000.0% in the 2nd quarter. MAI Capital Management now owns 2,405 shares of the health services provider’s stock worth $37,000 after acquiring an additional 2,400 shares during the last quarter. Cornerstone Planning Group LLC raised its holdings in shares of Select Medical by 6,868.4% during the 3rd quarter. Cornerstone Planning Group LLC now owns 3,972 shares of the health services provider’s stock worth $51,000 after acquiring an additional 3,915 shares during the period. Wilmington Savings Fund Society FSB grew its holdings in shares of Select Medical by 20.9% in the third quarter. Wilmington Savings Fund Society FSB now owns 5,784 shares of the health services provider’s stock valued at $74,000 after purchasing an additional 999 shares during the period. Finally, Advisors Asset Management Inc. increased its position in Select Medical by 13.2% during the second quarter. Advisors Asset Management Inc. now owns 7,135 shares of the health services provider’s stock worth $108,000 after purchasing an additional 834 shares during the last quarter. 89.48% of the stock is currently owned by hedge funds and other institutional investors.

Select Medical Stock Down 0.1%

NYSE:SEM opened at $16.24 on Thursday. Select Medical Holdings Corporation has a 52 week low of $11.65 and a 52 week high of $18.60. The stock’s fifty day moving average is $15.34 and its two-hundred day moving average is $14.24. The stock has a market capitalization of $2.01 billion, a price-to-earnings ratio of 14.12, a price-to-earnings-growth ratio of 0.92 and a beta of 1.22. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.89.

Select Medical (NYSE:SEM) last posted its quarterly earnings data on Thursday, February 19th. The health services provider reported $0.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.07). Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The firm had revenue of $1.40 billion during the quarter, compared to analysts’ expectations of $1.36 billion. During the same quarter in the prior year, the firm posted $0.18 EPS. Select Medical’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. Research analysts anticipate that Select Medical Holdings Corporation will post 1.17 EPS for the current year.

Select Medical announced that its board has initiated a share buyback program on Thursday, February 19th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the health services provider to purchase up to 49.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Select Medical Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd will be given a dividend of $0.0625 per share. This represents a $0.25 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Monday, March 2nd. Select Medical’s dividend payout ratio is currently 21.74%.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. Royal Bank Of Canada reissued a “sector perform” rating and issued a $16.50 price target (down from $19.00) on shares of Select Medical in a research note on Tuesday. Weiss Ratings upgraded Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 20th. Wall Street Zen raised Select Medical from a “hold” rating to a “buy” rating in a research note on Sunday. Zacks Research cut Select Medical from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th. Finally, Benchmark reissued a “hold” rating on shares of Select Medical in a research report on Wednesday. Two 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.com, Select Medical presently has a consensus rating of “Hold” and a consensus price target of $15.63.

More 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.

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.