Universal Health Services (NYSE:UHS) Shares Gap Up Following Strong Earnings

Universal Health Services, Inc. (NYSE:UHS) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $165.90, but opened at $174.95. Universal Health Services shares last traded at $162.90, with a volume of 332,525 shares traded.

The health services provider reported $3.70 earnings per share for the quarter, topping analysts’ consensus estimates of $3.14 by $0.56. The business had revenue of $3.84 billion during the quarter, compared to the consensus estimate of $3.78 billion. Universal Health Services had a return on equity of 12.08% and a net margin of 5.03%. The firm’s revenue for the quarter was up 10.8% on a year-over-year basis. During the same period in the previous year, the company posted $2.34 earnings per share.

Analyst Ratings Changes

Several equities research analysts have weighed in on UHS shares. Barclays began coverage on shares of Universal Health Services in a research note on Wednesday, March 6th. They issued an “equal weight” rating and a $181.00 price target for the company. UBS Group boosted their target price on Universal Health Services from $152.00 to $177.00 and gave the company a “neutral” rating in a research report on Thursday, February 29th. Wells Fargo & Company increased their price target on Universal Health Services from $195.00 to $200.00 and gave the stock an “overweight” rating in a report on Thursday, March 28th. TD Cowen boosted their price objective on Universal Health Services from $140.00 to $181.00 and gave the company a “market perform” rating in a report on Friday, March 1st. Finally, Mizuho upped their target price on Universal Health Services from $175.00 to $200.00 and gave the stock a “buy” rating in a research report on Wednesday, March 6th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and eight have given a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $180.07.

Insider Buying and Selling at Universal Health Services

In related news, CFO Steve Filton sold 35,000 shares of the firm’s stock in a transaction dated Friday, March 8th. The shares were sold at an average price of $176.82, for a total transaction of $6,188,700.00. Following the transaction, the chief financial officer now directly owns 68,785 shares of the company’s stock, valued at $12,162,563.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 16.10% of the company’s stock.

Hedge Funds Weigh In On Universal Health Services

Several institutional investors have recently modified their holdings of the business. Invesco Ltd. boosted its position in Universal Health Services by 4.1% in the third quarter. Invesco Ltd. now owns 3,398,974 shares of the health services provider’s stock worth $427,353,000 after purchasing an additional 134,122 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its holdings in shares of Universal Health Services by 5.3% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 2,071,022 shares of the health services provider’s stock worth $315,707,000 after buying an additional 103,802 shares during the last quarter. American Century Companies Inc. grew its position in Universal Health Services by 12.9% during the third quarter. American Century Companies Inc. now owns 1,707,708 shares of the health services provider’s stock valued at $214,710,000 after buying an additional 195,650 shares during the period. Nuance Investments LLC increased its holdings in Universal Health Services by 0.4% during the third quarter. Nuance Investments LLC now owns 1,463,921 shares of the health services provider’s stock worth $184,059,000 after buying an additional 6,400 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its position in Universal Health Services by 3.5% in the third quarter. JPMorgan Chase & Co. now owns 1,090,010 shares of the health services provider’s stock worth $137,047,000 after acquiring an additional 37,243 shares during the period. 86.05% of the stock is owned by institutional investors.

Universal Health Services Trading Down 0.5 %

The company has a quick ratio of 1.29, a current ratio of 1.40 and a debt-to-equity ratio of 0.77. The firm has a market cap of $11.10 billion, a P/E ratio of 16.09, a price-to-earnings-growth ratio of 0.82 and a beta of 1.24. The firm’s 50-day simple moving average is $170.55 and its 200 day simple moving average is $153.10.

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.