Select Medical Declares Dividend Amid Mixed Quarterly Results

Select Medical ( (SEM) ) just unveiled an announcement.

On April 28, 2026, Select Medical’s board-level compensation committee deferred by one year the vesting of several equity award tranches previously granted to Executive Chairman and Co-Founder Robert A. Ortenzio and Senior Executive Vice President Martin F. Jackson, contingent on their continued service. A day later, on April 29, 2026, the board declared a cash dividend of $0.0625 per share, payable on or about May 28, 2026 to shareholders of record as of May 14, 2026.

For the first quarter ended March 31, 2026, Select Medical posted 5.0% year-on-year revenue growth to $1.42 billion but reported lower income from operations, net income and adjusted EBITDA, with diluted EPS falling to $0.35 from $0.44. Segment results were mixed, with flat revenue and margin compression in critical illness recovery hospitals, strong double-digit revenue and EBITDA growth in rehabilitation hospitals and modest revenue growth but weaker margins in outpatient rehabilitation.

The company highlighted the March 2, 2026 merger agreement under which a buyer group led by Ortenzio and Jackson, alongside a fund affiliated with Welsh, Carson, Anderson & Stowe, plans to take Select Medical private at $16.50 per share in cash, subject to regulatory and shareholder approvals. The Hart-Scott-Rodino waiting period expired on April 27, 2026, and, if completed as expected in mid-2026, the deal would see Select Medical delisted from the NYSE and its shares deregistered, significantly reshaping the ownership structure for current investors.

Select Medical is maintaining its full-year 2026 outlook, projecting revenue between $5.6 billion and $5.8 billion, adjusted EBITDA of $520 million to $540 million and fully diluted EPS of $1.22 to $1.32. The reaffirmed guidance, alongside the announced dividend and ongoing go-private transaction, underscores management’s confidence in underlying operations despite near-term margin pressure and a transitioning capital markets profile for stakeholders.

The most recent analyst rating on (SEM) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Select Medical stock, see the SEM Stock Forecast page.

Spark’s Take on SEM Stock

According to Spark, TipRanks’ AI Analyst, SEM is a Neutral.

SEM scores as a mid-range opportunity primarily due to mixed financial performance—strong cash flow and improved leverage offset by sharp 2025 margin/EBIT compression. Technicals are supportive but near overbought, valuation is reasonable, and the latest call/guidance is constructive but weighed down by outpatient profit weakness and a guidance shortfall. The go-private deal is a notable positive catalyst that supports the overall score.

To see Spark’s full report on SEM stock, click here.

More about Select Medical

Select Medical Holdings Corporation is a U.S. healthcare services provider and one of the country’s largest operators of critical illness recovery hospitals, rehabilitation hospitals and outpatient rehabilitation clinics. As of March 31, 2026, it ran 103 critical illness recovery hospitals in 28 states, 41 rehabilitation hospitals in 15 states and 1,912 outpatient rehab clinics across 37 states and Washington, D.C.

The company reports through three segments: critical illness recovery hospitals, rehabilitation hospitals and outpatient rehabilitation, giving it broad exposure to post-acute and rehabilitative care demand nationwide. Its common stock trades on the New York Stock Exchange under the ticker SEM.

Average Trading Volume: 2,206,504

Technical Sentiment Signal: Buy

Current Market Cap: $2.05B

Find detailed analytics on SEM stock on TipRanks’ Stock Analysis page.