Select Medical (NYSE:SEM) Lowered to “Hold” Rating by Mizuho

Select Medical (NYSE:SEM) was downgraded by Mizuho from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday,Zacks.com reports.

SEM has been the topic of a number of other research reports. Wall Street Zen cut shares of Select Medical from a “buy” rating to a “hold” rating in a research note on Monday, March 9th. 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, March 3rd. Weiss Ratings upgraded shares of Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 20th. Zacks Research upgraded shares of Select Medical from a “strong sell” rating to a “hold” rating in a research note on Monday, May 4th. Finally, Benchmark cut shares of Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday, March 4th. One investment analyst has rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Select Medical has an average rating of “Hold” and a consensus price target of $15.50.

Select Medical Stock Performance

Shares of Select Medical stock opened at $16.48 on Tuesday. The stock has a market cap of $2.04 billion, a price-to-earnings ratio of 15.54, a PEG ratio of 0.94 and a beta of 1.02. The firm’s 50-day moving average is $16.35 and its 200 day moving average is $15.37. Select Medical has a 1 year low of $11.65 and a 1 year high of $16.99. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.15 and a quick ratio of 1.15.

Select Medical (NYSE:SEM) last announced its quarterly earnings results on Thursday, April 30th. The health services provider reported $0.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.07). The firm had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.41 billion. Select Medical had a return on equity of 6.62% and a net margin of 2.42%.The business’s revenue for the quarter was up 5.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.44 EPS. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. Sell-side analysts anticipate that Select Medical will post 1.27 EPS for the current fiscal year.

Select Medical declared that its board has initiated a stock buyback plan on Thursday, February 19th that authorizes the company to buyback $1.00 billion in outstanding 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 often a sign that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Select Medical

Hedge funds and other institutional investors have recently made changes to their positions in the business. Quarry LP purchased a new stake in shares of Select Medical during the 4th quarter valued at about $26,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Select Medical during the 4th quarter valued at about $28,000. Quantbot Technologies LP purchased a new stake in shares of Select Medical during the 3rd quarter valued at about $27,000. Hantz Financial Services Inc. increased its position in shares of Select Medical by 214.7% during the 4th 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. Finally, Smartleaf Asset Management LLC increased its position in shares of Select Medical by 37.8% during the 4th quarter. Smartleaf Asset Management LLC now owns 2,870 shares of the health services provider’s stock valued at $43,000 after purchasing an additional 788 shares during the last quarter. Hedge funds and other institutional investors own 89.48% of the company’s stock.

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.