Short Interest in Universal Health Services, Inc. (NYSE:UHS) Expands By 3,486.8%

Key Points

• Short interest in Universal Health Services, Inc. surged by 3,486.8% to 2,170,000 shares as of July 15th, representing 4.0% of the company's stock sold short.
• The company reported $5.35 EPS for its latest quarter, surpassing the consensus estimate of $4.85, with revenue of $4.28 billion reflecting a 9.6% year-over-year increase.
• Universal Health Services declared a quarterly dividend of $0.20 per share, set to be paid on September 16th, which results in an annualized yield of 0.5%.

Universal Health Services, Inc. (NYSE:UHS - Get Free Report) was the target of a significant growth in short interest in the month of July. As of July 15th, there was short interest totaling 2,170,000 shares, agrowthof3,486.8% from the June 30th total of 60,500 shares. Currently,4.0% of the company's stock are sold short. Based on an average daily volume of 870,300 shares, the days-to-cover ratio is presently 2.5 days. Based on an average daily volume of 870,300 shares, the days-to-cover ratio is presently 2.5 days. Currently,4.0% of the company's stock are sold short.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on UHS. Baird R W lowered shares of Universal Health Services from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 15th. Royal Bank Of Canada decreased their target price on shares of Universal Health Services from $211.00 to $201.00 and set a "sector perform" rating for the company in a report on Wednesday, April 30th. Stephens raised shares of Universal Health Services to a "hold" rating in a research report on Monday, June 2nd. Guggenheim initiated coverage on shares of Universal Health Services in a research report on Wednesday, April 9th. They set a "buy" rating and a $208.00 price objective on the stock. Finally, Robert W. Baird reaffirmed a "neutral" rating and set a $224.00 price objective (down previously from $274.00) on shares of Universal Health Services in a research report on Tuesday, April 15th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and seven have given a buy rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $218.92.

Universal Health Services Price Performance

Shares of Universal Health Services stock traded down $3.47 during trading on Friday, reaching $162.98. The company's stock had a trading volume of 1,123,319 shares, compared to its average volume of 856,303. The stock has a market capitalization of $10.59 billion, a P/E ratio of 8.58, a price-to-earnings-growth ratio of 0.68 and a beta of 1.28. Universal Health Services has a one year low of $152.33 and a one year high of $243.25. The company has a current ratio of 1.29, a quick ratio of 1.23 and a debt-to-equity ratio of 0.64. The stock has a 50-day moving average price of $177.42 and a two-hundred day moving average price of $180.01.

Universal Health Services (NYSE:UHS - Get Free Report) last announced its quarterly earnings results on Monday, July 28th. The health services provider reported $5.35 EPS for the quarter, beating analysts' consensus estimates of $4.85 by $0.50. Universal Health Services had a return on equity of 18.22% and a net margin of 7.66%. The company had revenue of $4.28 billion during the quarter, compared to analysts' expectations of $4.24 billion. During the same period in the prior year, the business posted $4.31 EPS. Universal Health Services's revenue was up 9.6% on a year-over-year basis. As a group, sell-side analysts anticipate that Universal Health Services will post 15.92 EPS for the current fiscal year.

Universal Health Services Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be given a $0.20 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.5%. Universal Health Services's dividend payout ratio (DPR) is presently 4.21%.

Insider Buying and Selling at Universal Health Services

In other Universal Health Services news, Director Maria Ruderman Singer sold 1,097 shares of the stock in a transaction on Wednesday, May 14th. The shares were sold at an average price of $191.48, for a total transaction of $210,053.56. Following the transaction, the director directly owned 7,884 shares in the company, valued at $1,509,628.32. This represents a 12.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 16.40% of the company's stock.

Institutional Trading of Universal Health Services

Large investors have recently bought and sold shares of the business. D. E. Shaw & Co. Inc. lifted its stake in shares of Universal Health Services by 99.2% in the fourth quarter. D. E. Shaw & Co. Inc. now owns 12,450 shares of the health services provider's stock worth $2,234,000 after acquiring an additional 6,200 shares during the period. Cetera Investment Advisers boosted its position in Universal Health Services by 30.6% in the fourth quarter. Cetera Investment Advisers now owns 12,858 shares of the health services provider's stock worth $2,307,000 after purchasing an additional 3,011 shares during the last quarter. SG Americas Securities LLC purchased a new position in Universal Health Services in the first quarter worth $1,141,000. Brown Advisory Inc. boosted its position in Universal Health Services by 5.4% in the first quarter. Brown Advisory Inc. now owns 5,152 shares of the health services provider's stock worth $968,000 after purchasing an additional 264 shares during the last quarter. Finally, CX Institutional purchased a new position in shares of Universal Health Services during the 1st quarter valued at $74,000. 86.05% of the stock is owned by institutional investors and hedge funds.

About Universal Health Services

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.