Wall Street Zen Downgrades Universal Health Services (NYSE:UHS) to Buy

Key Points

• Universal Health Services has been downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, signaling a shift in analyst sentiment.
• Other analysts also lowered their ratings, with Bank of America changing its view to "underperform" and reducing the target price from $215 to $185.
• Despite these downgrades, Universal Health Services reported a strong quarterly earnings beat, with EPS of $5.35 compared to estimates of $4.85.

Universal Health Services (NYSE:UHS - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Sunday.

A number of other research firms also recently issued reports on UHS. JPMorgan Chase & Co. cut their price target on Universal Health Services from $215.00 to $195.00 and set a "neutral" rating for the company in a research note on Monday, August 4th. Royal Bank Of Canada cut their price target on Universal Health Services from $211.00 to $201.00 and set a "sector perform" rating for the company in a research note on Wednesday, April 30th. UBS Group set a $227.00 price objective on Universal Health Services in a research report on Wednesday, July 30th. Robert W. Baird reaffirmed a "neutral" rating and set a $224.00 price objective (down from $274.00) on shares of Universal Health Services in a research report on Tuesday, April 15th. Finally, Stephens raised Universal Health Services to a "hold" rating in a research report on Monday, June 2nd. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and seven have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $216.54.

Universal Health Services Stock Up 2.2%

Shares of UHS traded up $3.75 during trading hours on Friday, hitting $175.41. The company had a trading volume of 605,678 shares, compared to its average volume of 852,389. The firm has a fifty day moving average price of $174.33 and a 200-day moving average price of $179.02. Universal Health Services has a 52-week low of $152.33 and a 52-week high of $243.25. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.19 and a current ratio of 1.29. The stock has a market capitalization of $11.40 billion, a price-to-earnings ratio of 9.24, a P/E/G ratio of 0.71 and a beta of 1.24.

Universal Health Services (NYSE:UHS - Get Free Report) last released its quarterly earnings data on Monday, July 28th. The health services provider reported $5.35 EPS for the quarter, topping the consensus estimate 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 the consensus estimate of $4.24 billion. During the same period last year, the company earned $4.31 EPS. Universal Health Services's revenue for the quarter was up 9.6% on a year-over-year basis. On average, equities research analysts forecast that Universal Health Services will post 15.92 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Maria Ruderman Singer sold 1,097 shares of the stock in a transaction on Wednesday, May 14th. The stock was sold at an average price of $191.48, for a total transaction of $210,053.56. Following the transaction, the director owned 7,884 shares of the company's stock, valued at approximately $1,509,628.32. This represents a 12.21% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 16.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Universal Health Services

A number of hedge funds have recently made changes to their positions in UHS. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Universal Health Services during the 2nd quarter worth $87,373,000. AQR Capital Management LLC raised its stake in Universal Health Services by 57.8% in the first quarter. AQR Capital Management LLC now owns 931,355 shares of the health services provider's stock valued at $173,381,000 after buying an additional 340,966 shares during the last quarter. Ameriprise Financial Inc. raised its stake in Universal Health Services by 329.4% in the first quarter. Ameriprise Financial Inc. now owns 404,806 shares of the health services provider's stock valued at $76,081,000 after buying an additional 310,531 shares during the last quarter. Freestone Grove Partners LP purchased a new stake in Universal Health Services in the fourth quarter valued at about $41,155,000. Finally, Bridgewater Associates LP raised its stake in Universal Health Services by 119.1% in the fourth quarter. Bridgewater Associates LP now owns 322,163 shares of the health services provider's stock valued at $57,802,000 after buying an additional 175,131 shares during the last quarter. 86.05% of the stock is currently owned by hedge funds and other institutional investors.

Universal Health Services Company Profile

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.