Universal Health Services (NYSE:UHS) Trading 3.4% Higher - Still a Buy?

Key Points

• Universal Health Services shares rose 3.4% to approximately $185.31, although trading volume was 93% below the average daily level.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating from 18 analysts, with an average price target of $204.94 after several firms reduced their targets.
• UHS exceeded quarterly expectations, reporting $5.98 in EPS and $4.64 billion in revenue, up 8.3% year over year. The company also pays a $0.20 quarterly dividend, yielding about 0.4%.

Universal Health Services, Inc. (NYSE:UHS - Get Free Report) shares were up 3.4% during trading on Wednesday . The company traded as high as $184.58 and last traded at $185.3070. 59,419 shares were traded during trading, a decline of 93% from the average daily volume of 861,309 shares. The stock had previously closed at $179.29.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on UHS. Guggenheim cut their price objective on Universal Health Services from $195.00 to $189.00 and set a "buy" rating on the stock in a report on Wednesday, July 29th. Weiss Ratings upgraded Universal Health Services from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 18th. The Goldman Sachs Group decreased their price objective 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. Morgan Stanley dropped their price objective on shares of Universal Health Services from $212.00 to $191.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 29th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $183.00 price objective on shares of Universal Health Services in a research note on Thursday, August 20th. Six analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, Universal Health Services has a consensus rating of "Hold" and an average target price of $204.94.

Universal Health Services Stock Performance

The company has a market capitalization of $10.81 billion, a PE ratio of 7.47, a PEG ratio of 1.07 and a beta of 1.06. The firm has a 50-day moving average of $168.83 and a two-hundred day moving average of $167.50. The company has a quick ratio of 1.04, a current ratio of 1.12 and a debt-to-equity ratio of 0.54.

Universal Health Services (NYSE:UHS - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The health services provider reported $5.98 EPS for the quarter, topping analysts' consensus estimates of $5.94 by $0.04. Universal Health Services had a net margin of 8.42% and a return on equity of 19.39%. The business had revenue of $4.64 billion for the quarter, compared to analysts' expectations of $4.58 billion. During the same quarter last year, the company earned $5.35 EPS. The business's revenue was up 8.3% on a year-over-year basis. Research analysts anticipate that Universal Health Services, Inc. will post 22.96 EPS for the current year.

Universal Health Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were given a $0.20 dividend. The ex-dividend date was Tuesday, September 1st. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.4%. Universal Health Services's dividend payout ratio is 3.26%.

Institutional Investors Weigh In On Universal Health Services

A number of institutional investors have recently modified their holdings of the business. Talon Private Wealth LLC acquired a new position in Universal Health Services in the 2nd quarter worth about $776,000. Sequoia Financial Advisors LLC grew its holdings in Universal Health Services by 83.6% in the second quarter. Sequoia Financial Advisors LLC now owns 7,026 shares of the health services provider's stock valued at $1,045,000 after purchasing an additional 3,200 shares during the period. Engineers Gate Manager LP grew its holdings in Universal Health Services by 840.2% in the second quarter. Engineers Gate Manager LP now owns 10,643 shares of the health services provider's stock valued at $1,583,000 after purchasing an additional 9,511 shares during the period. SVB Wealth LLC increased its position in shares of Universal Health Services by 10.4% in the second quarter. SVB Wealth LLC now owns 13,061 shares of the health services provider's stock valued at $1,942,000 after buying an additional 1,232 shares in the last quarter. Finally, IFP Advisors Inc increased its position in shares of Universal Health Services by 18.9% in the second quarter. IFP Advisors Inc now owns 1,878 shares of the health services provider's stock valued at $279,000 after buying an additional 298 shares in the last quarter. 86.05% of the stock is currently owned by institutional investors and hedge funds.

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 organizations. Its operations are primarily focused on acute care and behavioral health services, serving patients through a network of hospitals, treatment centers and ambulatory facilities.

The company's acute care activities include general and specialty hospitals that provide services such as emergency care, surgery, inpatient treatment and diagnostic procedures.

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