Universal Health Services (NYSE:UHS) Cut to “Buy” at Wall Street Zen

Universal Health Services (NYSE:UHS) was downgraded by research analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a report released on Saturday.

UHS has been the subject of several other research reports. Wells Fargo & Company reiterated an “equal weight” rating and set a $235.00 target price (down from $259.00) on shares of Universal Health Services in a research note on Wednesday, January 7th. UBS Group reissued a “buy” rating on shares of Universal Health Services in a report on Thursday, January 15th. Weiss Ratings restated a “buy (b)” rating on shares of Universal Health Services in a research note on Monday, December 29th. TD Cowen dropped their price target on Universal Health Services from $251.00 to $245.00 and set a “buy” rating on the stock in a research report on Wednesday, January 7th. Finally, Raymond James Financial set a $270.00 price target on Universal Health Services and gave the stock an “outperform” rating in a report on Monday, November 3rd. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $233.86.

Universal Health Services Stock Up 0.7%

UHS stock opened at $205.74 on Friday. The company has a market capitalization of $12.85 billion, a P/E ratio of 8.89, a PEG ratio of 0.64 and a beta of 1.26. The firm has a 50 day simple moving average of $215.88 and a 200-day simple moving average of $210.67. The company has a current ratio of 1.03, a quick ratio of 0.96 and a debt-to-equity ratio of 0.55. Universal Health Services has a twelve month low of $152.33 and a twelve month high of $246.32.

Universal Health Services (NYSE:UHS) last announced its quarterly earnings data on Wednesday, February 25th. The health services provider reported $5.88 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.92 by ($0.04). Universal Health Services had a net margin of 8.57% and a return on equity of 19.84%. The firm had revenue of $4.49 billion for the quarter, compared to analyst estimates of $4.50 billion. During the same quarter in the previous year, the company earned $4.92 EPS. The company’s quarterly revenue was up 9.1% compared to the same quarter last year. Universal Health Services has set its FY 2026 guidance at 22.640-24.520 EPS. On average, equities research analysts predict that Universal Health Services will post 15.92 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Universal Health Services

A number of hedge funds and other institutional investors have recently modified their holdings of UHS. NewEdge Advisors LLC grew its position in Universal Health Services by 2.7% in the 1st quarter. NewEdge Advisors LLC now owns 2,665 shares of the health services provider’s stock valued at $501,000 after buying an additional 69 shares in the last quarter. United Services Automobile Association acquired a new stake in shares of Universal Health Services in the 1st quarter worth approximately $235,000. Focus Partners Wealth boosted its holdings in shares of Universal Health Services by 80.6% in the first quarter. Focus Partners Wealth now owns 2,631 shares of the health services provider’s stock valued at $494,000 after acquiring an additional 1,174 shares in the last quarter. Envestnet Asset Management Inc. increased its stake in shares of Universal Health Services by 9.3% during the second quarter. Envestnet Asset Management Inc. now owns 87,880 shares of the health services provider’s stock valued at $15,919,000 after acquiring an additional 7,472 shares during the period. Finally, Atria Investments Inc increased its stake in shares of Universal Health Services by 27.9% during the second quarter. Atria Investments Inc now owns 1,408 shares of the health services provider’s stock valued at $255,000 after acquiring an additional 307 shares during the period. 86.05% of the stock is currently owned by institutional investors.

Universal Health Services News Summary

Here are the key news stories impacting Universal Health Services this week:

• Positive Sentiment: UHS reiterated an FY‑2026 revenue target up to $18.8B and said it will accelerate investments in AI and outpatient expansion — strategic growth initiatives that support longer‑term revenue/earnings upside. Article Title
• Positive Sentiment: Barclays raised its price target to $268 and kept an overweight rating, indicating at least one major shop sees meaningful upside from current levels. Article Title
• Positive Sentiment: UHS reported strong operating performance in 2025 (double‑digit margins and higher net income) and management is forecasting additional revenue and earnings gains in 2026 — supportive of valuation over time. Article Title
• Neutral Sentiment: UHS provided FY‑2026 EPS guidance of $22.64–$24.52 (consensus ~ $23.44) and revenue guidance of $18.4–$18.8B (slightly above consensus), a mixed signal: upside on revenue but a wide EPS band that leaves near‑term expectations ambiguous. Article Title
• Neutral Sentiment: Cantor Fitzgerald lowered its price target to $229 and moved to a neutral rating — a more cautious stance that partly offsets Barclays’ bullish view. Article Title
• Neutral Sentiment: The full Q4 earnings call transcript and analyst notes are now public, providing more detail for investors to re‑rate guidance assumptions and margin drivers. Article Title
• Negative Sentiment: Q4 EPS came in at $5.88 vs. the $5.92 consensus — management cited softer admissions (lower medical care demand) and rising costs, which pressured the quarter despite 9.1% revenue growth. Article Title
• Negative Sentiment: UHS warned of an approximate $35M earnings hit tied to a new California psychiatric staffing mandate — a tangible near‑term cost that will weigh on margins until absorbed. Article Title
• Negative Sentiment: Coverage and headlines emphasized the earnings miss and S&P500 pressure, prompting negative headlines and short‑term selling in some outlets. Article Title

Universal Health Services Company Profile

Universal Health Services, Inc (NYSE: UHS) is one of the largest diversified health care management companies in the United States, offering a broad spectrum of services through its acute care hospital and behavioral health segments. The company operates general acute care hospitals, surgical hospitals and ambulatory centers, as well as inpatient and outpatient behavioral health facilities. Its network provides emergency and specialized medicine, diagnostic imaging, laboratory services, advanced surgical care and rehabilitation, complemented by a comprehensive array of behavioral services including psychiatric treatment, addiction programs and developmental disabilities care.

In the acute care segment, UHS’s facilities deliver services ranging from emergency department treatment and intensive care to maternity care and outpatient surgery.