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

Universal Health Services, Inc. (NYSE:UHS) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $180.12, but opened at $190.09. Universal Health Services shares last traded at $193.02, with a volume of 296,575 shares changing hands.

The health services provider reported $4.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.21 by $0.71. Universal Health Services had a net margin of 6.66% and a return on equity of 15.75%. The company had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $4.01 billion.

Universal Health Services Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 17th. Investors of record on Monday, March 3rd will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.46%. The ex-dividend date of this dividend is Monday, March 3rd. Universal Health Services’s dividend payout ratio is currently 5.32%.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. The Goldman Sachs Group cut shares of Universal Health Services from a “buy” rating to a “neutral” rating and cut their price objective for the company from $228.00 to $198.00 in a research note on Monday, December 16th. Bank of America assumed coverage on shares of Universal Health Services in a research note on Wednesday, November 6th. They set a “neutral” rating and a $223.00 price objective on the stock. JPMorgan Chase & Co. restated a “neutral” rating and set a $226.00 price objective on shares of Universal Health Services in a research note on Tuesday, December 17th. Barclays cut their price objective on shares of Universal Health Services from $271.00 to $249.00 and set an “overweight” rating on the stock in a research note on Thursday. Finally, Stephens boosted their price target on shares of Universal Health Services from $210.00 to $223.00 and gave the stock an “equal weight” rating in a research report on Friday. Six research analysts have rated the stock with a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $228.77.

Insider Buying and Selling

In related news, Director Maria Ruderman Singer sold 1,614 shares of Universal Health Services stock in a transaction dated Wednesday, December 11th. The stock was sold at an average price of $191.15, for a total value of $308,516.10. Following the transaction, the director now owns 5,879 shares of the company’s stock, valued at approximately $1,123,770.85. This trade represents a 21.54 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 16.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Universal Health Services

Institutional investors and hedge funds have recently bought and sold shares of the business. Allspring Global Investments Holdings LLC grew its stake in Universal Health Services by 22.5% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 54,105 shares of the health services provider’s stock valued at $9,721,000 after acquiring an additional 9,946 shares in the last quarter. Savant Capital LLC grew its stake in Universal Health Services by 255.3% during the 4th quarter. Savant Capital LLC now owns 6,345 shares of the health services provider’s stock valued at $1,138,000 after acquiring an additional 4,559 shares in the last quarter. Abacus Planning Group Inc. grew its stake in shares of Universal Health Services by 175.6% in the 4th quarter. Abacus Planning Group Inc. now owns 2,792 shares of the health services provider’s stock valued at $501,000 after buying an additional 1,779 shares in the last quarter. Cerity Partners LLC grew its stake in shares of Universal Health Services by 86.4% in the 3rd quarter. Cerity Partners LLC now owns 21,047 shares of the health services provider’s stock valued at $4,820,000 after buying an additional 9,755 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its stake in shares of Universal Health Services by 0.9% in the 3rd quarter. JPMorgan Chase & Co. now owns 1,197,537 shares of the health services provider’s stock valued at $274,248,000 after buying an additional 10,578 shares in the last quarter. Hedge funds and other institutional investors own 86.05% of the company’s stock.

Universal Health Services Trading Down 5.9 %

The firm has a market cap of $11.55 billion, a P/E ratio of 11.64, a PEG ratio of 0.53 and a beta of 1.30. The company has a 50 day moving average of $184.47 and a 200 day moving average of $205.02. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.28 and a current ratio of 1.39.

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.