Select Medical Declares Quarterly Dividend of $0.0625 per Share

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: Feb 20 2026

0mins

SEM+0.2%

Should l Buy SEM?

Source: seekingalpha

Quarterly Dividend Declaration: Select Medical has declared a quarterly dividend of $0.0625 per share, consistent with previous distributions, indicating the company's commitment to maintaining stable cash flow and shareholder returns.
Dividend Yield: The forward yield of 1.55% reflects the company's attractiveness in the current market environment, potentially appealing to investors seeking stable income.
Earnings Performance: Select Medical reported a non-GAAP EPS of $0.16, missing expectations by $0.07, while revenue reached $1.4 billion, exceeding forecasts by $40 million, demonstrating strong performance in revenue growth despite EPS shortfall.
Future Outlook: Although the EPS fell short of expectations, the revenue beat may lay a foundation for future growth, prompting investors to monitor upcoming earnings reports and market reactions.

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Analyst Views on SEM

Wall Street analysts forecast SEM stock price to rise

4 Analyst Rating

4 Buy

0 Hold

0 Sell

Strong Buy

Current: 14.970

Low

17.00

Averages

18.75

High

21.00

Current: 14.970

Low

17.00

Averages

18.75

High

21.00

RBC Capital

Outperform

maintain

$20 -> $19

2026-02-23

Reason

RBC Capital

Price Target

$20 -> $19

AI Analysis

2026-02-23

maintain

Outperform

Reason

RBC Capital lowered the firm's price target on Select Medical to $19 from $20 and keeps an Outperform rating on the shares. The stock declined about 7% on Friday after the company reported a Q4 adjusted EBITDA miss and softer-than-expected 2026 guidance, though the firm is encouraged that management does not expect a material headwind related to the high-cost outlier threshold within its CIRH segment in 2026, the analyst tells investors in a research note.

BofA

Joanna Gajuk

NULL -> No Rating

downgrade

2025-11-25

Reason

BofA

Joanna Gajuk

Price Target

2025-11-25

downgrade

NULL -> No Rating

Reason

BofA analyst Joanna Gajuk moved to No Rating on Select Medical after the company received a non-binding indication of interest from Executive Chairman and co-founder Robert Ortenzio to acquire all of the outstanding shares for $16.00 to $16.20 per share in cash. The firm is "not surprised" by the offer given that the stock has been trading at a depressed valuation, but views shares as no longer trading on fundamentals given the offer.

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About SEM

Select Medical Holdings Corporation operates critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics in the United States. Its segments include Critical Illness Recovery Hospital, Rehabilitation Hospital, and Outpatient Rehabilitation. Critical Illness Recovery Hospital segment consists of hospitals designed to serve the needs of patients recovering from critical illnesses, often with complex medical needs. It operates the majority of its critical illness recovery hospitals as a hospital within a hospital (an HIH). Rehabilitation Hospital segment serves patients that require intensive physical rehabilitation care. Outpatient Rehabilitation segment consists of clinics that provide physical, occupational, and speech rehabilitation services. It operates around 105 critical illness recovery hospitals in 29 states, 36 rehabilitation hospitals in 14 states, and 1,922 outpatient rehabilitation clinics in 39 states and the District of Columbia.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Select Medical Enters Definitive Merger Agreement with Consortium

3 hours agoNewsfilter

Merger Agreement Reached: Select Medical Holdings Corporation announced a definitive merger agreement with a consortium led by Robert A. Ortenzio to acquire all outstanding shares not already owned by the consortium at $16.50 per share, representing a total transaction value of $3.9 billion, indicating strong confidence from the consortium in Select Medical's future.
Shareholder Interests Protected: The merger agreement received unanimous approval from the disinterested members of Select Medical's Board, with the Special Committee determining that the transaction is fair and in the best interests of unaffiliated shareholders, ensuring protection of shareholder rights.
Clear Transaction Conditions: The merger is expected to close in mid-2026, subject to customary conditions including shareholder voting and regulatory approvals, reflecting the consortium's confidence in the smooth execution of the transaction and highlighting their commitment to future business development.
Management Stability: Post-merger, Select Medical will continue its operations with the current management team expected to remain in place, which will help maintain operational continuity and stability, further enhancing market trust.

Select Medical Enters Definitive Merger Agreement with Consortium

3 hours agoPRnewswire

Merger Agreement Reached: Select Medical Holdings Corporation announced a definitive merger agreement with a consortium led by Robert A. Ortenzio to acquire all outstanding common stock not already owned by the consortium at $16.50 per share, representing an enterprise value of $3.9 billion, indicating strong confidence from the consortium.
Shareholder Interests Protected: The merger agreement received unanimous approval from the disinterested members of Select Medical's Board, with the Special Committee determining that the transaction is fair and in the best interests of unaffiliated shareholders, ensuring protection of shareholder rights.
Management Stability: Following the merger, Select Medical's current management is expected to remain in place, ensuring operational stability during the merger process and maintaining commitments to patients and employees, which enhances business continuity.
Future Outlook: The merger is expected to close in mid-2026, subject to customary conditions including shareholder voting and regulatory approvals, after which Select Medical will become a privately held company, further advancing its strategic development in the healthcare sector.

Select Medical Holdings Q4 2025 Earnings Call Insights

Feb 20 2026seekingalpha

Expansion Plans: Select Medical added 150 rehab beds in Q4 2025, including a new 32-bed hospital with Cleveland Clinic and a 76-bed acquisition, indicating ongoing growth in the inpatient rehabilitation sector, with expectations to add 399 more beds by 2027, thereby strengthening its market position.
Financial Performance: Total revenue grew over 6% year-over-year to $1.4 billion in Q4, yet adjusted EBITDA fell 10% to $104.7 million, primarily due to rising health insurance expenses and medical costs, highlighting pressures on cost management.
Dividend Distribution: The Board approved a cash dividend of $0.0625 per share payable on March 12, 2026, reflecting the company's commitment to shareholder returns amidst ongoing profitability, which bolsters investor confidence.
Future Outlook: The company anticipates 2026 revenue between $5.6 billion and $5.8 billion, with adjusted EBITDA projected at $520 million to $540 million; despite challenges from health insurance costs and payer mix changes, management remains cautiously optimistic about growth in the inpatient rehab segment, viewing current challenges as largely one-time events.