Bank of America Initiates Coverage on Universal Health Services (NYSE:UHS)

Bank of America began coverage on shares of Universal Health Services (NYSE:UHS) in a report released on Wednesday. The brokerage set a “neutral” rating and a $223.00 price target on the health services provider’s stock. Bank of America‘s target price would suggest a potential upside of 6.99% from the company’s current price.

A number of other brokerages have also commented on UHS. Robert W. Baird raised their target price on shares of Universal Health Services from $236.00 to $274.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 4th. Cantor Fitzgerald reaffirmed a “neutral” rating and set a $219.00 target price on shares of Universal Health Services in a research report on Friday, October 25th. Stephens reissued an “equal weight” rating and set a $200.00 price target on shares of Universal Health Services in a research report on Thursday, July 25th. Royal Bank of Canada decreased their price objective on Universal Health Services from $222.00 to $211.00 and set a “sector perform” rating for the company in a report on Monday, October 28th. Finally, TD Cowen lowered their price objective on shares of Universal Health Services from $283.00 to $275.00 and set a “buy” rating for the company in a research note on Monday, October 28th. Six equities research analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Universal Health Services presently has an average rating of “Moderate Buy” and an average target price of $231.14.

Universal Health Services Price Performance

Shares of UHS stock opened at $208.43 on Wednesday. The stock has a 50 day moving average price of $225.03 and a 200 day moving average price of $203.48. Universal Health Services has a 52-week low of $127.43 and a 52-week high of $243.25. 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 firm has a market capitalization of $13.90 billion, a P/E ratio of 13.86, a P/E/G ratio of 0.67 and a beta of 1.29.

Universal Health Services (NYSE:UHS) last released its earnings results on Thursday, October 24th. The health services provider reported $3.71 earnings per share for the quarter, missing the consensus estimate of $3.75 by ($0.04). The business had revenue of $3.96 billion for the quarter, compared to the consensus estimate of $3.90 billion. Universal Health Services had a return on equity of 15.75% and a net margin of 6.66%. The firm’s revenue for the quarter was up 11.3% compared to the same quarter last year. During the same quarter last year, the business posted $2.55 earnings per share. As a group, sell-side analysts predict that Universal Health Services will post 15.89 earnings per share for the current year.

Universal Health Services announced that its board has approved a share repurchase plan on Wednesday, July 24th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the health services provider to purchase up to 8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In other news, Director Warren J. Nimetz sold 3,444 shares of the company’s stock in a transaction dated Monday, August 12th. The shares were sold at an average price of $217.64, for a total transaction of $749,552.16. Following the transaction, the director now owns 3,971 shares in the company, valued at $864,248.44. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 16.10% of the company’s stock.

Institutional Investors Weigh In On Universal Health Services

A number of large investors have recently made changes to their positions in UHS. Vanguard Group Inc. grew its stake in Universal Health Services by 0.8% during the 1st quarter. Vanguard Group Inc. now owns 7,099,282 shares of the health services provider’s stock valued at $1,295,335,000 after purchasing an additional 57,036 shares during the last quarter. Bank of New York Mellon Corp boosted its position in Universal Health Services by 0.5% in the second quarter. Bank of New York Mellon Corp now owns 486,438 shares of the health services provider’s stock valued at $89,957,000 after buying an additional 2,620 shares during the last quarter. Point72 Asset Management L.P. boosted its position in Universal Health Services by 362.3% in the second quarter. Point72 Asset Management L.P. now owns 322,626 shares of the health services provider’s stock valued at $59,663,000 after buying an additional 252,846 shares during the last quarter. Marshall Wace LLP increased its holdings in Universal Health Services by 357.9% in the 2nd quarter. Marshall Wace LLP now owns 261,221 shares of the health services provider’s stock worth $48,308,000 after buying an additional 204,178 shares during the period. Finally, Lazard Asset Management LLC raised its position in Universal Health Services by 1,191.8% during the 1st quarter. Lazard Asset Management LLC now owns 215,215 shares of the health services provider’s stock worth $39,267,000 after buying an additional 198,555 shares during the last quarter. 86.05% of the stock is owned by hedge funds and other institutional investors.

Universal Health Services Company Profile

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.