Pzena Investment Management LLC Lowers Holdings in Universal Health Services, Inc. $UHS

Key Points

• Pzena Investment Management cut its stake in Universal Health Services by 9.5% in the first quarter, selling 200,369 shares and leaving it with about 1.91 million shares worth roughly $342.2 million.
• UHS reported better-than-expected first-quarter results, posting EPS of $5.62 versus the $5.41 estimate and revenue of $4.50 billion versus the $4.39 billion forecast, with revenue up 9.6% year over year.
• Analysts remain cautious overall: several firms lowered price targets, and the stock currently carries a consensus rating of “Hold” with an average target price of $216.56.

Pzena Investment Management LLC lowered its holdings in Universal Health Services, Inc. (NYSE:UHS - Free Report) by 9.5% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 1,912,235 shares of the health services provider's stock after selling 200,369 shares during the period. Universal Health Services makes up 1.1% of Pzena Investment Management LLC's holdings, making the stock its 27th biggest holding. Pzena Investment Management LLC owned approximately 3.13% of Universal Health Services worth $342,233,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. iA Global Asset Management Inc. boosted its position in Universal Health Services by 20.7% in the 1st quarter. iA Global Asset Management Inc. now owns 8,384 shares of the health services provider's stock valued at $1,500,000 after buying an additional 1,437 shares during the period. Janney Montgomery Scott LLC increased its position in shares of Universal Health Services by 58.2% during the first quarter. Janney Montgomery Scott LLC now owns 15,961 shares of the health services provider's stock worth $2,857,000 after acquiring an additional 5,870 shares during the period. Louisbourg Investments Inc. raised its stake in shares of Universal Health Services by 10.6% in the first quarter. Louisbourg Investments Inc. now owns 1,195 shares of the health services provider's stock valued at $214,000 after acquiring an additional 115 shares in the last quarter. Louisiana State Employees Retirement System acquired a new stake in shares of Universal Health Services in the first quarter valued at $501,000. Finally, Silver Oak Securities Incorporated boosted its holdings in Universal Health Services by 10.0% in the first quarter. Silver Oak Securities Incorporated now owns 3,521 shares of the health services provider's stock valued at $630,000 after purchasing an additional 320 shares during the period. 86.05% of the stock is owned by hedge funds and other institutional investors.

Universal Health Services Price Performance

Shares of NYSE:UHS opened at $150.51 on Thursday. The company's fifty day moving average price is $156.67 and its 200 day moving average price is $188.00. Universal Health Services, Inc. has a 12 month low of $140.08 and a 12 month high of $246.32. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.08 and a quick ratio of 1.01. The firm has a market capitalization of $9.11 billion, a P/E ratio of 6.27, a P/E/G ratio of 0.79 and a beta of 1.07.

Universal Health Services (NYSE:UHS - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The health services provider reported $5.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.41 by $0.21. The company had revenue of $4.50 billion during the quarter, compared to the consensus estimate of $4.39 billion. Universal Health Services had a net margin of 8.56% and a return on equity of 19.57%. Universal Health Services's revenue for the quarter was up 9.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $4.84 earnings per share. As a group, sell-side analysts predict that Universal Health Services, Inc. will post 23.47 earnings per share for the current fiscal year.

Universal Health Services Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Monday, June 8th were given a $0.20 dividend. The ex-dividend date of this dividend was Monday, June 8th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.5%. Universal Health Services's dividend payout ratio is 3.33%.

Wall Street Analyst Weigh In

Several research firms recently commented on UHS. Deutsche Bank Aktiengesellschaft lowered their target price on Universal Health Services from $261.00 to $230.00 and set a "buy" rating for the company in a research note on Wednesday, April 29th. Stephens decreased their price objective on Universal Health Services from $235.00 to $205.00 and set an "equal weight" rating for the company in a research note on Wednesday, April 29th. Morgan Stanley lowered their price objective on Universal Health Services from $233.00 to $212.00 and set an "equal weight" rating for the company in a research report on Wednesday, April 29th. Cantor Fitzgerald cut their target price on shares of Universal Health Services from $229.00 to $194.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 29th. Finally, Wall Street Zen cut shares of Universal Health Services from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Six equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Universal Health Services currently has an average rating of "Hold" and an average target price of $216.56.

Universal Health Services Profile

Universal Health Services, Inc NYSE: UHS is one of the largest diversified health care management companies in the United States, offering a broad spectrum of services through its acute care hospital and behavioral health segments. The company operates general acute care hospitals, surgical hospitals and ambulatory centers, as well as inpatient and outpatient behavioral health facilities. Its network provides emergency and specialized medicine, diagnostic imaging, laboratory services, advanced surgical care and rehabilitation, complemented by a comprehensive array of behavioral services including psychiatric treatment, addiction programs and developmental disabilities care.

In the acute care segment, UHS's facilities deliver services ranging from emergency department treatment and intensive care to maternity care and outpatient surgery.

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