Zacks Investment Research Downgrades Universal Health Services (NYSE:UHS) to Hold

Universal Health Services (NYSE:UHS) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Tuesday, Zacks.com reports. They presently have a $113.00 price objective on the health services provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 7.60% from the stock’s previous close.

According to Zacks, “Universal Health’s segments, namely Acute Care and Behavioral Health  continue to deliver solid performances, which impresses. Acquisitions have played an instrumental role in building its growth trajectory by adding facilities, bed and hospital to its business portfolio. We believe that the company will continue making acquisitions that will help it expand its domestic and international presence. Its balance sheet strength with adequate solvency level is impressive. Its shares have underperformed its industry in a year’s time. However, rising expenses are likely to drain margin going forward. It suspended 2020 guidance in the view of the current pandemic situation. Lower costs and net revenue recognition contributed to the company's second-quarter results.”

Several other equities research analysts have also recently issued reports on UHS. Credit Suisse Group lifted their target price on Universal Health Services from $139.00 to $140.00 and gave the stock an “outperform” rating in a report on Wednesday, July 29th. TheStreet raised Universal Health Services from a “c+” rating to a “b” rating in a report on Monday, September 14th. Piper Sandler lifted their target price on Universal Health Services from $113.00 to $117.00 and gave the stock a “neutral” rating in a report on Wednesday, July 29th. Mizuho reduced their target price on Universal Health Services from $136.00 to $130.00 and set a “buy” rating on the stock in a report on Friday, May 29th. Finally, Barclays upgraded Universal Health Services from an “equal weight” rating to an “overweight” rating and set a $138.00 price target for the company in a research report on Tuesday, June 9th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and eight have given a buy rating to the stock. Universal Health Services has a consensus rating of “Hold” and an average target price of $130.75.

NYSE:UHS traded down $2.82 on Tuesday, reaching $105.02. 10,558 shares of the company’s stock traded hands, compared to its average volume of 769,588. The company has a quick ratio of 0.94, a current ratio of 1.02 and a debt-to-equity ratio of 0.60. The stock has a 50-day simple moving average of $112.43 and a 200-day simple moving average of $102.79. The firm has a market cap of $9.16 billion, a PE ratio of 12.38, a P/E/G ratio of 1.50 and a beta of 1.09. Universal Health Services has a 12 month low of $65.20 and a 12 month high of $151.18.

Universal Health Services (NYSE:UHS) last posted its quarterly earnings results on Monday, July 27th. The health services provider reported $2.93 EPS for the quarter, beating the Zacks’ consensus estimate of $0.73 by $2.20. The business had revenue of $2.73 billion for the quarter, compared to analysts’ expectations of $2.47 billion. Universal Health Services had a return on equity of 14.75% and a net margin of 6.53%. The business’s quarterly revenue was down 4.4% on a year-over-year basis. During the same period last year, the firm earned $2.76 earnings per share. On average, equities analysts anticipate that Universal Health Services will post 9.41 earnings per share for the current year.

Large investors have recently made changes to their positions in the business. Advisor Group Holdings Inc. acquired a new position in Universal Health Services in the first quarter valued at $563,000. Canada Pension Plan Investment Board boosted its holdings in shares of Universal Health Services by 2.5% in the first quarter. Canada Pension Plan Investment Board now owns 173,860 shares of the health services provider’s stock valued at $17,226,000 after acquiring an additional 4,216 shares in the last quarter. State of Wisconsin Investment Board boosted its holdings in shares of Universal Health Services by 5.9% in the second quarter. State of Wisconsin Investment Board now owns 40,940 shares of the health services provider’s stock valued at $3,803,000 after acquiring an additional 2,280 shares in the last quarter. State Board of Administration of Florida Retirement System boosted its holdings in shares of Universal Health Services by 15.0% in the second quarter. State Board of Administration of Florida Retirement System now owns 128,370 shares of the health services provider’s stock valued at $11,924,000 after acquiring an additional 16,749 shares in the last quarter. Finally, Barclays PLC boosted its holdings in shares of Universal Health Services by 16.8% in the second quarter. Barclays PLC now owns 92,774 shares of the health services provider’s stock valued at $8,619,000 after acquiring an additional 13,330 shares in the last quarter. Institutional investors and hedge funds own 83.18% of the company’s stock.

About Universal Health Services

Universal Health Services, Inc, through its subsidiaries, owns and operates acute care hospitals, outpatient facilities, and behavioral health care facilities. The company operates through Acute Care Hospital Services, Behavioral Health Care Services, and Other segments. Its hospital offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services, and/or behavioral health services.

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