SEM Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Select Medical Holdings Corp (SEM) is currently not a strong buy for a beginner investor with a long-term horizon. The stock is being sold for $16.50 per share in cash as part of an acquisition agreement, which limits upside potential. Additionally, the company's recent financial performance has been weak, with significant declines in net income, EPS, and gross margin. While technical indicators show bullish moving averages, the RSI indicates overbought conditions, and the MACD is negative. Analysts have also lowered price targets recently. Given these factors, holding or avoiding investment in SEM at this time is recommended.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), but the RSI is at 86.962, indicating overbought conditions. The MACD histogram is -0.0156, below 0, and negatively contracting. Key support and resistance levels are tight, with a pivot at 16.408, R1 at 16.444, and S1 at 16.372.
The stock is being sold for $16.50 per share in cash to a consortium led by executives and directors, providing a clear exit strategy for current shareholders.
Recent financial performance is weak, with a 307.20% YoY drop in net income and a 328.57% YoY drop in EPS. Analysts have lowered price targets due to a Q4 adjusted EBITDA miss and softer-than-expected 2026 guidance. The RSI indicates overbought conditions, and the MACD is negative.
In 2025/Q4, revenue remained flat YoY at $1,396,634,000. Net income dropped significantly to $19,547,000 (-307.20% YoY), EPS fell to 0.16 (-328.57% YoY), and gross margin decreased to 7.85 (-17.02% YoY).
RBC Capital recently lowered the price target from $20 to $19 while maintaining an Outperform rating. Analysts are cautious due to a Q4 adjusted EBITDA miss and softer 2026 guidance but note no material headwinds in the CIRH segment.
