Select Medical (NYSE:SEM) Given Hold Rating at Benchmark

Benchmark reissued their hold rating on shares of Select Medical (NYSE:SEM) in a research report report published on Wednesday morning,Benzinga reports.

A number of other equities research analysts have also recently commented on SEM. Weiss Ratings raised shares of Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, February 20th. Wall Street Zen upgraded Select Medical from a “hold” rating to a “buy” rating in a report on Sunday. Royal Bank Of Canada restated a “sector perform” rating and set a $16.50 target price (down from $19.00) on shares of Select Medical in a research note on Tuesday. Finally, Zacks Research cut Select Medical from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 26th. Two equities research 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’s stock. According to data from MarketBeat, Select Medical currently has a consensus rating of “Hold” and a consensus target price of $15.63.

Select Medical Trading Down 0.1%

Shares of NYSE SEM opened at $16.24 on Wednesday. Select Medical has a 1-year low of $11.65 and a 1-year high of $18.60. The business has a fifty day moving average price of $15.34 and a 200 day moving average price of $14.24. The stock 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. 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 (EPS) for the quarter, missing the consensus estimate 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 net margin of 2.68% and a return on equity of 7.26%. Select Medical’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.18 EPS. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. Equities research analysts expect that Select Medical will post 1.17 EPS for the current fiscal year.

Select Medical Announces Dividend

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

Select Medical announced that its board has authorized a stock buyback plan on Thursday, February 19th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the health services provider to reacquire up to 49.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Select Medical

A number of institutional investors and hedge funds have recently modified their holdings of SEM. Quarry LP purchased a new position in Select Medical during the 4th quarter worth approximately $26,000. Quantbot Technologies LP acquired a new stake in shares of Select Medical in the third quarter worth $27,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Select Medical during the fourth quarter worth $28,000. MAI Capital Management lifted its position in Select Medical by 48,000.0% during the second quarter. MAI Capital Management now owns 2,405 shares of the health services provider’s stock valued at $37,000 after purchasing an additional 2,400 shares during the period. Finally, Hantz Financial Services Inc. boosted its holdings in Select Medical by 214.7% in the fourth quarter. Hantz Financial Services Inc. now owns 2,549 shares of the health services provider’s stock valued at $38,000 after purchasing an additional 1,739 shares during the last quarter. Institutional investors and hedge funds own 89.48% of the company’s stock.

Select Medical News Roundup

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.

Select Medical Company Profile

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.