Universal Health Services (NYSE:UHS) Shares Down 3.5% – Here’s Why

Universal Health Services, Inc. (NYSE:UHS) traded down 3.5% during trading on Friday . The company traded as low as $182.25 and last traded at $183.17. 280,869 shares traded hands during trading, a decline of 40% from the average session volume of 468,326 shares. The stock had previously closed at $189.90.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on UHS shares. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $226.00 price target on shares of Universal Health Services in a research report on Tuesday, December 17th. Cantor Fitzgerald reiterated a “neutral” rating and set a $219.00 target price on shares of Universal Health Services in a research report on Friday, October 25th. TD Cowen reduced their price objective on shares of Universal Health Services from $275.00 to $251.00 and set a “buy” rating for the company in a research report on Tuesday, November 26th. Wells Fargo & Company reduced their price target on shares of Universal Health Services from $285.00 to $230.00 and set an “overweight” rating for the company in a research report on Monday, November 25th. Finally, The Goldman Sachs Group lowered Universal Health Services from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $228.00 to $198.00 in a research note on Monday, December 16th. Seven research analysts have rated the stock with a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $226.14.

Universal Health Services Price Performance

The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.28 and a current ratio of 1.39. The stock has a market capitalization of $12.16 billion, a price-to-earnings ratio of 12.25, a PEG ratio of 0.54 and a beta of 1.30. The company has a 50 day moving average of $188.97 and a 200 day moving average of $207.34.

Universal Health Services (NYSE:UHS) last posted its quarterly earnings results on Thursday, October 24th. The health services provider reported $3.71 earnings per share for the quarter, missing analysts’ consensus estimates of $3.75 by ($0.04). Universal Health Services had a net margin of 6.66% and a return on equity of 15.75%. The business had revenue of $3.96 billion during the quarter, compared to analyst estimates of $3.90 billion. During the same quarter in the prior year, the business earned $2.55 earnings per share. The firm’s quarterly revenue was up 11.3% on a year-over-year basis. As a group, equities research analysts anticipate that Universal Health Services, Inc. will post 15.92 EPS for the current year.

Universal Health Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 17th. Stockholders of record on Tuesday, December 3rd were issued a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 0.43%. The ex-dividend date was Tuesday, December 3rd. Universal Health Services’s payout ratio is currently 5.32%.

Insider Buying and Selling

In other news, Director Maria Ruderman Singer sold 1,614 shares of the firm’s stock in a transaction on Wednesday, December 11th. The shares were sold at an average price of $191.15, for a total value of $308,516.10. Following the completion of the sale, the director now owns 5,879 shares in the company, valued at approximately $1,123,770.85. This trade represents a 21.54 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 16.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Universal Health Services

Several institutional investors have recently made changes to their positions in UHS. Financial Management Professionals Inc. acquired a new position in Universal Health Services during the third quarter worth $32,000. R Squared Ltd purchased a new stake in shares of Universal Health Services in the 4th quarter worth about $29,000. True Wealth Design LLC acquired a new stake in Universal Health Services in the 3rd quarter valued at about $39,000. Huntington National Bank increased its holdings in Universal Health Services by 414.3% during the 3rd quarter. Huntington National Bank now owns 180 shares of the health services provider’s stock valued at $41,000 after acquiring an additional 145 shares in the last quarter. Finally, Benjamin F. Edwards & Company Inc. lifted its holdings in shares of Universal Health Services by 41.8% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 251 shares of the health services provider’s stock valued at $46,000 after purchasing an additional 74 shares in the last quarter. 86.05% of the stock is currently owned by hedge funds and other institutional investors.

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.