Select Medical (NYSE:SEM) Board Declares Stock Buyback Plan

Select Medical (NYSE:SEM) declared that its Board of Directors has initiated a stock buyback program on Thursday, February 19th, RTT News reports. The company plans to buyback $1.00 billion in shares. This buyback authorization allows the health services provider to repurchase up to 49.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several analysts recently commented on SEM shares. Wall Street Zen upgraded Select Medical from a “hold” rating to a “buy” rating in a research report on Saturday, November 8th. Benchmark reissued a “buy” rating on shares of Select Medical in a report on Monday, October 27th. Mizuho set a $17.00 price objective on shares of Select Medical in a report on Monday, November 3rd. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Select Medical in a research report on Wednesday, January 21st. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Select Medical currently has a consensus rating of “Moderate Buy” and a consensus target price of $17.80.

Select Medical Price Performance

NYSE:SEM opened at $15.04 on Friday. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.87. The business’s 50-day moving average price is $15.31 and its 200 day moving average price is $14.06. Select Medical has a 52-week low of $11.65 and a 52-week high of $19.40. The firm has a market cap of $1.86 billion, a P/E ratio of 13.07, a PEG ratio of 0.56 and a beta of 1.25.

Select Medical (NYSE:SEM) last posted its quarterly earnings data on Thursday, February 19th. The health services provider reported $0.16 earnings per share 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 business had revenue of $1.40 billion for the quarter, compared to the consensus estimate of $1.36 billion. During the same quarter last year, the business posted $0.18 EPS. 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. As a group, sell-side analysts predict that Select Medical will post 1.17 earnings per share for the current fiscal year.

Select Medical Announces Dividend

The business also recently announced 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. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.7%. Select Medical’s payout ratio is 29.07%.

Key Headlines Impacting Select Medical

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

• Positive Sentiment: Board authorized a large share buyback — a $1.0 billion repurchase plan that could cover up to ~49.5% of outstanding shares; this signals management thinks the stock is undervalued and supports earnings per share. RTT News: Buyback
• Positive Sentiment: Board declared a quarterly cash dividend of $0.0625 per share (annualized yield ~1.7%), adding a steady return component for income-focused holders. PR Newswire: Q4 results & dividend
• Positive Sentiment: Top-line beat and operating profit rebound — Q4 revenue grew 6.4% to $1.40B (above estimates) and operating profit improved materially, showing service demand strength in key segments. QuiverQuant: Q4 results
• Neutral Sentiment: FY‑2026 guidance is roughly in line with consensus on revenue but EPS guidance (1.22–1.32) sits at the low end vs. consensus (~1.32), leaving upside limited unless margins improve. PR Newswire: Guidance
• Neutral Sentiment: Full earnings call transcript is available for details on expense drivers and segment trends — useful for investors deciding whether the EPS shortfall is temporary. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: EPS missed estimates — reported $0.16 vs. consensus ~$0.23, weighed by rising expenses and margin pressure; that miss is the primary near-term driver of the stock decline. Zacks: EPS miss
• Negative Sentiment: Weak cash flow and lower net income — operating cash fell sharply year-over-year and cash on hand declined, which raises near-term financial flexibility concerns despite the buyback plan. QuiverQuant: Cash flow & balance sheet

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.