Universal Health Services (NYSE:UHS) Reaches New 12-Month High – Time to Buy?

Shares of Universal Health Services, Inc. (NYSE:UHS) reached a new 52-week high during mid-day trading on Friday . The stock traded as high as $232.55 and last traded at $233.2570, with a volume of 72040 shares trading hands. The stock had previously closed at $225.38.

Analysts Set New Price Targets

Several analysts recently weighed in on UHS shares. Wall Street Zen raised shares of Universal Health Services from a “buy” rating to a “strong-buy” rating in a research note on Saturday, October 11th. Cantor Fitzgerald lifted their target price on Universal Health Services from $227.00 to $250.00 and gave the stock a “neutral” rating in a report on Wednesday, October 29th. The Goldman Sachs Group assumed coverage on Universal Health Services in a research note on Tuesday, October 14th. They issued a “neutral” rating and a $219.00 price target for the company. Robert W. Baird cut their price objective on Universal Health Services from $243.00 to $203.00 and set a “neutral” rating on the stock in a research note on Thursday, August 14th. Finally, Royal Bank Of Canada reiterated a “sector perform” rating on shares of Universal Health Services in a report on Thursday, October 30th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $233.87.

Universal Health Services Stock Up 3.0%

The firm has a market cap of $14.50 billion, a price-to-earnings ratio of 11.03, a PEG ratio of 0.80 and a beta of 1.33. The firm has a 50 day moving average of $210.36 and a 200 day moving average of $190.52. The company has a quick ratio of 1.19, a current ratio of 1.03 and a debt-to-equity ratio of 0.55.

Universal Health Services (NYSE:UHS) last posted its quarterly earnings results on Tuesday, October 28th. The health services provider reported $5.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.66 by $1.03. The firm had revenue of $4.50 billion for the quarter, compared to analysts’ expectations of $4.32 billion. Universal Health Services had a return on equity of 19.47% and a net margin of 8.09%.The company’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period in the prior year, the business earned $3.71 EPS. As a group, sell-side analysts predict that Universal Health Services, Inc. will post 15.92 earnings per share for the current year.

Universal Health Services Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Monday, December 1st will be issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Monday, December 1st. Universal Health Services’s dividend payout ratio (DPR) is presently 3.80%.

Insider Buying and Selling at Universal Health Services

In other news, Director Warren J. Nimetz sold 3,817 shares of the company’s stock in a transaction dated Tuesday, November 11th. The shares were sold at an average price of $223.30, for a total transaction of $852,336.10. Following the transaction, the director owned 8,481 shares in the company, valued at approximately $1,893,807.30. This represents a 31.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Elliot J. Md Mba Sussman sold 965 shares of the stock in a transaction dated Wednesday, October 29th. The stock was sold at an average price of $225.70, for a total transaction of $217,800.50. Following the transaction, the director directly owned 6,113 shares in the company, valued at $1,379,704.10. This trade represents a 13.63% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 16.40% of the company’s stock.

Institutional Investors Weigh In On Universal Health Services

Hedge funds and other institutional investors have recently modified their holdings of the company. Pzena Investment Management LLC lifted its holdings in shares of Universal Health Services by 310.2% in the 3rd quarter. Pzena Investment Management LLC now owns 1,607,029 shares of the health services provider’s stock worth $328,541,000 after purchasing an additional 1,215,286 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Universal Health Services during the second quarter worth $87,373,000. Norges Bank bought a new position in shares of Universal Health Services in the second quarter valued at $83,333,000. Nomura Holdings Inc. grew its holdings in shares of Universal Health Services by 100.6% during the second quarter. Nomura Holdings Inc. now owns 2,560 shares of the health services provider’s stock valued at $464,000 after buying an additional 426,211 shares during the last quarter. Finally, AQR Capital Management LLC increased its position in shares of Universal Health Services by 57.8% during the first quarter. AQR Capital Management LLC now owns 931,355 shares of the health services provider’s stock worth $173,381,000 after acquiring an additional 340,966 shares in the last quarter. Institutional investors own 86.05% of the company’s stock.

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.