Universal Health Services (NYSE:UHS) Trading 3.7% Higher – Still a Buy?

Universal Health Services, Inc. (NYSE:UHS) traded up 3.7% during mid-day trading on Tuesday . The company traded as high as $231.63 and last traded at $228.71. 359,397 shares traded hands during mid-day trading, a decline of 45% from the average session volume of 659,279 shares. The stock had previously closed at $220.45.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the stock. Royal Bank of Canada increased their price objective on shares of Universal Health Services from $189.00 to $222.00 and gave the company a “sector perform” rating in a report on Monday, September 9th. Baird R W upgraded shares of Universal Health Services from a “hold” rating to a “strong-buy” rating in a report on Wednesday, June 26th. Robert W. Baird increased their price objective on shares of Universal Health Services from $236.00 to $274.00 and gave the company an “outperform” rating in a research report on Wednesday, September 4th. Cantor Fitzgerald reissued a “neutral” rating and issued a $219.00 price objective on shares of Universal Health Services in a research report on Tuesday, October 1st. Finally, Stephens restated an “equal weight” rating and issued a $200.00 target price on shares of Universal Health Services in a report on Thursday, July 25th. Six analysts have rated the stock with a hold rating, nine have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $224.92.

Universal Health Services Price Performance

The company has a current ratio of 1.28, a quick ratio of 1.17 and a debt-to-equity ratio of 0.67. The company has a 50 day moving average price of $227.69 and a 200 day moving average price of $197.73. The company has a market capitalization of $15.08 billion, a P/E ratio of 19.19, a P/E/G ratio of 0.70 and a beta of 1.27.

Universal Health Services (NYSE:UHS) last released its earnings results on Wednesday, July 24th. The health services provider reported $4.31 earnings per share for the quarter, beating analysts’ consensus estimates of $3.37 by $0.94. Universal Health Services had a return on equity of 14.91% and a net margin of 6.22%. The firm had revenue of $3.91 billion during the quarter, compared to the consensus estimate of $3.87 billion. During the same period in the prior year, the company posted $2.53 EPS. The company’s revenue was up 10.1% compared to the same quarter last year. On average, equities analysts predict that Universal Health Services, Inc. will post 15.91 EPS for the current fiscal year.

Universal Health Services Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 17th. Investors of record on Tuesday, September 3rd were issued a dividend of $0.20 per share. The ex-dividend date was Tuesday, September 3rd. This represents a $0.80 dividend on an annualized basis and a yield of 0.36%. Universal Health Services’s dividend payout ratio (DPR) is currently 6.78%.

Universal Health Services declared that its Board of Directors has authorized a stock buyback plan on Wednesday, July 24th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the health services provider to repurchase up to 8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Warren J. Nimetz sold 3,444 shares of the business’s stock in a transaction dated Monday, August 12th. The stock was sold at an average price of $217.64, for a total transaction of $749,552.16. Following the completion of the transaction, the director now directly owns 3,971 shares in the company, valued at $864,248.44. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In other Universal Health Services news, Director Eileen C. Mcdonnell sold 2,535 shares of the company’s stock in a transaction that occurred on Friday, July 26th. The stock was sold at an average price of $209.55, for a total transaction of $531,209.25. Following the completion of the transaction, the director now owns 6,413 shares of the company’s stock, valued at $1,343,844.15. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Warren J. Nimetz sold 3,444 shares of the company’s stock in a transaction that occurred on Monday, August 12th. The shares were sold at an average price of $217.64, for a total value of $749,552.16. Following the transaction, the director now directly owns 3,971 shares of the company’s stock, valued at $864,248.44. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 21,970 shares of company stock worth $4,653,535 over the last ninety days. 16.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Point72 Asset Management L.P. boosted its stake in Universal Health Services by 362.3% during the 2nd quarter. Point72 Asset Management L.P. now owns 322,626 shares of the health services provider’s stock valued at $59,663,000 after purchasing an additional 252,846 shares during the last quarter. Marshall Wace LLP boosted its stake in Universal Health Services by 357.9% during the 2nd quarter. Marshall Wace LLP now owns 261,221 shares of the health services provider’s stock valued at $48,308,000 after purchasing an additional 204,178 shares during the last quarter. Lazard Asset Management LLC boosted its stake in Universal Health Services by 1,191.8% during the 1st quarter. Lazard Asset Management LLC now owns 215,215 shares of the health services provider’s stock valued at $39,267,000 after purchasing an additional 198,555 shares during the last quarter. Lord Abbett & CO. LLC purchased a new stake in Universal Health Services during the 1st quarter valued at $25,032,000. Finally, Pzena Investment Management LLC boosted its stake in Universal Health Services by 41.2% during the 1st quarter. Pzena Investment Management LLC now owns 455,773 shares of the health services provider’s stock valued at $83,160,000 after purchasing an additional 132,942 shares during the last quarter. Hedge funds and other institutional investors own 86.05% of the company’s stock.

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.