Universal Health Services (NYSE:UHS) Trading 3.7% Higher – What’s Next?

Universal Health Services, Inc. (NYSE:UHS) was up 3.7% on Tuesday . The stock traded as high as $231.63 and last traded at $228.71. Approximately 359,397 shares were traded during trading, a decline of 45% from the average daily volume of 659,279 shares. The stock had previously closed at $220.45.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on UHS. Royal Bank of Canada raised their target price on Universal Health Services from $189.00 to $222.00 and gave the stock a “sector perform” rating in a report on Monday, September 9th. Barclays raised Universal Health Services from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $198.00 to $256.00 in a report on Friday, July 26th. Robert W. Baird raised their target price on Universal Health Services from $236.00 to $274.00 and gave the stock an “outperform” rating in a report on Wednesday, September 4th. StockNews.com cut Universal Health Services from a “strong-buy” rating to a “buy” rating in a report on Friday. Finally, Baird R W raised Universal Health Services from a “hold” rating to a “strong-buy” rating in a report on Wednesday, June 26th. Six investment analysts have rated the stock with a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Universal Health Services has an average rating of “Moderate Buy” and an average price target of $224.92.

Universal Health Services Trading Up 2.2 %

The company has a debt-to-equity ratio of 0.67, a current ratio of 1.28 and a quick ratio of 1.17. The company has a market cap of $15.08 billion, a PE ratio of 19.19, a price-to-earnings-growth ratio of 0.70 and a beta of 1.27. The company has a 50-day moving average of $227.69 and a 200 day moving average of $197.73.

Universal Health Services (NYSE:UHS) last issued its quarterly earnings data on Wednesday, July 24th. The health services provider reported $4.31 EPS for the quarter, topping analysts’ consensus estimates of $3.37 by $0.94. Universal Health Services had a net margin of 6.22% and a return on equity of 14.91%. The company had revenue of $3.91 billion during the quarter, compared to the consensus estimate of $3.87 billion. During the same quarter in the previous year, the firm posted $2.53 earnings per share. Universal Health Services’s revenue for the quarter was up 10.1% compared to the same quarter last year. Analysts predict that Universal Health Services, Inc. will post 15.91 earnings per share for the current year.

Universal Health Services Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 17th. Stockholders of record on Tuesday, September 3rd were issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.36%. The ex-dividend date was Tuesday, September 3rd. Universal Health Services’s dividend payout ratio (DPR) is presently 6.78%.

Universal Health Services declared that its Board of Directors has authorized a share repurchase program on Wednesday, July 24th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the health services provider to buy up to 8% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Eileen C. Mcdonnell sold 2,535 shares of the company’s stock in a transaction dated Friday, July 26th. The shares were sold at an average price of $209.55, for a total transaction of $531,209.25. Following the completion of the sale, the director now owns 6,413 shares of the company’s stock, valued at approximately $1,343,844.15. This represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, Director Eileen C. Mcdonnell sold 2,535 shares of the stock in a transaction that occurred on Friday, July 26th. The shares were sold at an average price of $209.55, for a total value of $531,209.25. Following the completion of the sale, the director now owns 6,413 shares of the company’s stock, valued at $1,343,844.15. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Matthew Jay Peterson sold 15,141 shares of the stock in a transaction that occurred on Friday, July 26th. The shares were sold at an average price of $210.85, for a total transaction of $3,192,479.85. Following the completion of the sale, the executive vice president now directly owns 5,253 shares of the company’s stock, valued at approximately $1,107,595.05. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 21,970 shares of company stock worth $4,653,535. Company insiders own 16.10% of the company’s stock.

Hedge Funds Weigh In On Universal Health Services

A number of hedge funds have recently made changes to their positions in the stock. Wellington Management Group LLP lifted its position in shares of Universal Health Services by 26.6% during the 4th quarter. Wellington Management Group LLP now owns 13,109 shares of the health services provider’s stock worth $1,998,000 after purchasing an additional 2,756 shares during the last quarter. Kapitalo Investimentos Ltda acquired a new position in shares of Universal Health Services during the fourth quarter worth about $55,000. Symmetry Partners LLC acquired a new position in Universal Health Services during the first quarter worth about $202,000. Trust Co. of Toledo NA OH acquired a new position in Universal Health Services during the first quarter worth about $219,000. Finally, Los Angeles Capital Management LLC acquired a new position in Universal Health Services during the first quarter worth about $22,793,000. Hedge funds and other institutional investors own 86.05% of the company’s stock.

Universal Health Services Company Profile

Universal Health Services, Inc, through its subsidiaries, owns and operates acute care hospitals, and outpatient and behavioral health care facilities. It operates through Acute Care Hospital Services and Behavioral Health Care Services segments. The company's hospitals offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic and coronary care, pediatric services, pharmacy services, and/or behavioral health services.