Q1 EPS Estimates for Select Medical Increased by Analyst

Select Medical Holdings Corporation (NYSE:SEM) – Equities research analysts at Zacks Research upped their Q1 2026 earnings per share (EPS) estimates for Select Medical in a note issued to investors on Thursday, March 5th. Zacks Research analyst Team now anticipates that the health services provider will post earnings per share of $0.38 for the quarter, up from their previous forecast of $0.35. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for Select Medical’s current full-year earnings is $1.17 per share. Zacks Research also issued estimates for Select Medical’s Q2 2026 earnings at $0.28 EPS, Q3 2026 earnings at $0.23 EPS, Q4 2026 earnings at $0.38 EPS, FY2026 earnings at $1.26 EPS, Q1 2027 earnings at $0.43 EPS, Q2 2027 earnings at $0.36 EPS, Q3 2027 earnings at $0.33 EPS, Q4 2027 earnings at $0.35 EPS and FY2028 earnings at $1.69 EPS.

Select Medical (NYSE:SEM) last issued its quarterly 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 business had revenue of $1.40 billion during the quarter, compared to analyst estimates of $1.36 billion. Select Medical had a net margin of 2.68% and a return on equity of 7.26%. Select Medical’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same period last year, the firm posted $0.18 earnings per share. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS.

Several other brokerages have also issued reports on SEM. Weiss Ratings raised shares of Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 20th. Wall Street Zen upgraded shares of Select Medical from a “hold” rating to a “buy” rating in a report on Sunday, March 1st. Royal Bank Of Canada restated a “sector perform” rating and issued a $16.50 target price (down from $19.00) on shares of Select Medical in a research note on Tuesday, March 3rd. Finally, Benchmark lowered Select Medical from a “buy” rating to a “hold” rating in a research report on Wednesday. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Select Medical presently has an average rating of “Hold” and a consensus price target of $15.63.

Select Medical Stock Performance

NYSE:SEM opened at $16.24 on Friday. 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 has a twelve month low of $11.65 and a twelve month high of $18.60. The company has a fifty day moving average of $15.39 and a 200-day moving average of $14.29. The firm has a market capitalization of $2.01 billion, a P/E ratio of 14.12, a P/E/G ratio of 0.93 and a beta of 1.22.

Select Medical declared that its Board of Directors has authorized a stock repurchase 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 repurchase up to 49.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Select Medical Announces Dividend

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

Hedge Funds Weigh In On Select Medical

A number of hedge funds have recently added to or reduced their stakes in SEM. Caitong International Asset Management Co. Ltd bought a new stake in Select Medical during the 4th quarter worth approximately $28,000. Beartown Capital Management LLC bought a new position in shares of Select Medical in the fourth quarter valued at approximately $2,970,000. State of Tennessee Department of Treasury boosted its position in shares of Select Medical by 33.2% during the fourth quarter. State of Tennessee Department of Treasury now owns 63,307 shares of the health services provider’s stock valued at $953,000 after buying an additional 15,787 shares during the last quarter. XTX Topco Ltd grew its holdings in Select Medical by 394.2% during the fourth quarter. XTX Topco Ltd now owns 138,229 shares of the health services provider’s stock worth $2,053,000 after buying an additional 110,257 shares in the last quarter. Finally, nVerses Capital LLC purchased a new stake in Select Medical in the 4th quarter valued at $163,000. Institutional investors and hedge funds own 89.48% of the company’s stock.

Key Headlines Impacting Select Medical

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

• Neutral Sentiment: Royal Bank of Canada assigned a Sector Perform rating on SEM, a neutral/hold view that may temper upside expectations. Article Title
• Negative Sentiment: Zacks Research sharply cut earnings estimates across multiple upcoming quarters and trimmed FY2026 and FY2027 outlooks, while maintaining a “Strong Sell” rating — a bearish analyst stance that increases selling pressure and raises questions about near-term operating momentum.
• Negative Sentiment: Kaskela Law announced an investigation into whether the $16.50 per-share buyout offer is fair to shareholders, creating legal/transaction risk and potential delay or renegotiation that can weigh on the stock. Article Title
• Negative Sentiment: Additional reporting on the shareholder-investigation highlights heightened scrutiny of the deal terms; legal inquiries typically add uncertainty and can prompt activists or lead to revised offers. Article Title

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.