Universal Health Services (NYSE:UHS) Stock Falls 5.7% - Should You Sell?

Key Points

• Universal Health Services shares fell 5.7% to around $175, with trading volume substantially below the average session volume.
• Analysts remain cautious: the consensus rating is Hold from 18 analysts, while several firms recently cut price targets; the consensus target is $204.94.
• The company reported better-than-expected quarterly results, with EPS of $5.98 and revenue of $4.64 billion, up 8.3% year over year. Institutional investors own approximately 86.05% of the stock.

Universal Health Services, Inc. (NYSE:UHS - Get Free Report) shares dropped 5.7% during mid-day trading on Tuesday. The company traded as low as $177.08 and last traded at $175.0410. 286,897 shares were traded during trading, a decline of 65% from the average session volume of 828,588 shares. The stock had previously closed at $185.71.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on UHS shares. Barclays reduced their target price on Universal Health Services from $179.00 to $168.00 and set an "equal weight" rating on the stock in a research note on Tuesday, July 28th. Robert W. Baird lowered their target price on shares of Universal Health Services from $204.00 to $166.00 and set a "neutral" rating for the company in a research note on Wednesday, July 29th. 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 for the company in a research note on Thursday, July 30th. Weiss Ratings upgraded shares of Universal Health Services from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, October 14th. Finally, Cantor Fitzgerald reaffirmed a "neutral" rating on shares of Universal Health Services in a research note on Friday, October 2nd. Six analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $204.94.

Universal Health Services Trading Down 5.4%

The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.04 and a current ratio of 1.12. The company's fifty day simple moving average is $177.10 and its 200-day simple moving average is $177.97. The company has a market capitalization of $10.35 billion, a P/E ratio of 7.16, a PEG ratio of 1.17 and a beta of 1.03.

Universal Health Services (NYSE:UHS - Get Free Report) last posted its earnings results on Tuesday, July 28th. The health services provider reported $5.98 EPS for the quarter, beating analysts' consensus estimates of $5.94 by $0.04. The business had revenue of $4.64 billion for the quarter, compared to the consensus estimate of $4.58 billion. Universal Health Services had a net margin of 8.42% and a return on equity of 19.39%. The company's revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter last year, the firm posted $5.35 EPS. Research analysts predict that Universal Health Services, Inc. will post 22.85 earnings per share for the current year.

Institutional Trading of Universal Health Services

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. First Eagle Investment Management LLC raised its position in shares of Universal Health Services by 2.9% in the 2nd quarter. First Eagle Investment Management LLC now owns 4,554,670 shares of the health services provider's stock worth $677,234,000 after acquiring an additional 130,389 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in Universal Health Services by 12.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,781,262 shares of the health services provider's stock valued at $318,812,000 after purchasing an additional 192,351 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in Universal Health Services by 1.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,226,577 shares of the health services provider's stock valued at $219,520,000 after purchasing an additional 20,577 shares during the last quarter. Lazard Asset Management LLC grew its stake in Universal Health Services by 6.0% in the first quarter. Lazard Asset Management LLC now owns 374,155 shares of the health services provider's stock valued at $66,963,000 after purchasing an additional 21,333 shares during the last quarter. Finally, Quantinno Capital Management LP raised its holdings in Universal Health Services by 1.5% in the first quarter. Quantinno Capital Management LP now owns 330,848 shares of the health services provider's stock worth $59,212,000 after purchasing an additional 4,838 shares in the last quarter. Institutional investors own 86.05% of the company's stock.

Universal Health Services Company Profile

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

The company's acute care operations include general and specialty hospitals, ambulatory surgery centers, emergency departments, physician practices and other outpatient services. Its behavioral health business provides inpatient and outpatient treatment for mental health conditions, substance-use disorders and related needs.

Universal Health Services serves patients across the United States and Puerto Rico, with additional behavioral health operations in the United Kingdom.

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