Universal Health Services (NYSE:UHS) Shares Break Above 200 Day Moving Average - Time to Sell?

Key Points

• Universal Health Services shares broke above their 200-day moving average, reaching $178.25 and recently trading near $176.25, compared with a 200-day average of $166.58.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating from 18 analysts, although the average price target of $204.94 suggests potential upside.
• UHS reported solid quarterly results, with EPS of $5.98 beating estimates and revenue rising 8.3% year over year to $4.64 billion. The company also pays a quarterly dividend of $0.20 per share, yielding about 0.5%.

Shares of Universal Health Services, Inc. (NYSE:UHS - Get Free Report) passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $166.58 and traded as high as $178.25. Universal Health Services shares last traded at $176.2540, with a volume of 580,146 shares.

Analyst Ratings Changes

UHS has been the subject of a number of analyst reports. Weiss Ratings upgraded Universal Health Services from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 18th. Wells Fargo & Company raised their price target on Universal Health Services from $165.00 to $166.00 and gave the company an "equal weight" rating in a report on Monday, July 13th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $183.00 price objective on shares of Universal Health Services in a report on Thursday, August 20th. The Goldman Sachs Group lowered their target price on shares of Universal Health Services from $242.00 to $190.00 and set a "neutral" rating on the stock in a research note on Thursday, July 30th. Finally, Morgan Stanley decreased their price objective on shares of Universal Health Services from $212.00 to $191.00 and set an "equal weight" rating for the company in a report on Wednesday, July 29th. Six investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $204.94.

Universal Health Services Trading Up 0.3%

The firm has a market capitalization of $10.39 billion, a price-to-earnings ratio of 7.18, a price-to-earnings-growth ratio of 1.08 and a beta of 1.03. The company has a quick ratio of 1.04, a current ratio of 1.12 and a debt-to-equity ratio of 0.54. The firm's 50 day moving average is $173.28 and its 200 day moving average is $166.58.

Universal Health Services (NYSE:UHS - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The health services provider reported $5.98 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.94 by $0.04. Universal Health Services had a return on equity of 19.39% and a net margin of 8.42%.The company had revenue of $4.64 billion for the quarter, compared to analysts' expectations of $4.58 billion. During the same quarter in the prior year, the company earned $5.35 earnings per share. The firm's revenue was up 8.3% on a year-over-year basis. Equities analysts forecast that Universal Health Services, Inc. will post 22.93 earnings per share for the current year.

Universal Health Services Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Tuesday, September 1st. Universal Health Services's dividend payout ratio is currently 3.26%.

Institutional Trading of Universal Health Services

Several institutional investors and hedge funds have recently bought and sold shares of the stock. CX Institutional boosted its holdings in shares of Universal Health Services by 13.4% in the third quarter. CX Institutional now owns 1,907 shares of the health services provider's stock worth $332,000 after buying an additional 225 shares during the period. Versant Capital Management Inc lifted its position in shares of Universal Health Services by 232.5% in the 3rd quarter. Versant Capital Management Inc now owns 3,009 shares of the health services provider's stock valued at $524,000 after acquiring an additional 2,104 shares in the last quarter. Envestnet Portfolio Solutions Inc. boosted its stake in Universal Health Services by 4.2% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 46,719 shares of the health services provider's stock worth $6,947,000 after purchasing an additional 1,885 shares during the period. Talon Private Wealth LLC acquired a new position in Universal Health Services in the 2nd quarter worth approximately $776,000. Finally, Sequoia Financial Advisors LLC grew its position in Universal Health Services by 83.6% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 7,026 shares of the health services provider's stock worth $1,045,000 after purchasing an additional 3,200 shares in the last quarter. Institutional investors and hedge funds own 86.05% of the company's stock.

About Universal Health Services

Universal Health Services, Inc NYSE: UHS is a diversified healthcare services company that owns and operates hospitals, outpatient centers, and other healthcare facilities. Its operations are organized primarily around acute care hospitals and behavioral health services.

The company's acute care facilities provide services such as general hospital care, emergency medicine, surgery, imaging, women's health, and specialized treatment programs. Its behavioral health facilities offer inpatient and outpatient care for mental health conditions, substance use disorders, and related behavioral health needs.

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