Select Medical (NYSE:SEM) Earns Sector Perform Rating from Royal Bank Of Canada

Select Medical (NYSE:SEM)‘s stock had its “sector perform” rating reaffirmed by analysts at Royal Bank Of Canada in a research note issued on Tuesday, MarketBeat reports. They presently have a $16.50 price objective on the health services provider’s stock, down from their prior price objective of $19.00. Royal Bank Of Canada’s price objective suggests a potential upside of 1.60% from the company’s current price.

A number of other research analysts also recently weighed in on the company. Weiss Ratings raised Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 20th. Mizuho set a $17.00 target price on Select Medical in a report on Monday, November 3rd. Zacks Research downgraded shares of Select Medical from a “hold” rating to a “strong sell” rating in a report on Thursday, February 26th. Finally, Wall Street Zen raised Select Medical from a “hold” rating to a “buy” rating in a research report on Sunday. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $15.63.

Select Medical Stock Performance

Shares of SEM opened at $16.24 on Tuesday. Select Medical has a 12 month low of $11.65 and a 12 month high of $18.60. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.89. The firm’s fifty day simple moving average is $15.34 and its two-hundred day simple moving average is $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.

Select Medical (NYSE:SEM) last released its earnings results on Thursday, February 19th. The health services provider reported $0.16 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.07). The business had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.36 billion. Select Medical had a return on equity of 7.26% and a net margin of 2.68%.The company’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same period in the prior year, the business earned $0.18 EPS. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. As a group, analysts predict that Select Medical will post 1.17 EPS for the current year.

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

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Quarry LP purchased a new position in shares of Select Medical in the fourth quarter worth about $26,000. Quantbot Technologies LP acquired a new stake in Select Medical in the 3rd quarter valued at about $27,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Select Medical during the fourth quarter worth $28,000. MAI Capital Management grew its holdings in shares of 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 worth $37,000 after purchasing an additional 2,400 shares during the last quarter. Finally, Hantz Financial Services Inc. lifted its stake 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 buying an additional 1,739 shares during the last quarter. 89.48% of the stock is owned by hedge funds and other institutional investors.

Key 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.