Universal Health Services (NYSE:UHS) Shares Gap Down After Analyst Downgrade

Universal Health Services, Inc. (NYSE:UHS)’s share price gapped down prior to trading on Friday after Barclays lowered their price target on the stock from $271.00 to $249.00. The stock had previously closed at $186.06, but opened at $170.61. Barclays currently has an overweight rating on the stock. Universal Health Services shares last traded at $172.44, with a volume of 189,155 shares changing hands.

A number of other analysts also recently issued reports on UHS. Bank of America assumed coverage on shares of Universal Health Services in a report on Wednesday, November 6th. They issued a “neutral” rating and a $223.00 price target on the stock. Wells Fargo & Company reduced their target price on Universal Health Services from $285.00 to $230.00 and set an “overweight” rating on the stock in a report on Monday, November 25th. StockNews.com lowered Universal Health Services from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 9th. The Goldman Sachs Group downgraded Universal Health Services from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $228.00 to $198.00 in a research note on Monday, December 16th. Finally, TD Cowen decreased their price objective on Universal Health Services from $275.00 to $251.00 and set a “buy” rating on the stock in a report on Tuesday, November 26th. Six investment analysts have rated the stock with a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $228.77.

Insider Activity

In related news, Director Maria Ruderman Singer sold 1,614 shares of the business’s stock in a transaction on Wednesday, December 11th. The stock was sold at an average price of $191.15, for a total transaction of $308,516.10. Following the completion of the transaction, the director now owns 5,879 shares in the company, valued at $1,123,770.85. The trade was a 21.54 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 16.10% of the company’s stock.

Institutional Trading of Universal Health Services

Institutional investors and hedge funds have recently made changes to their positions in the business. R Squared Ltd purchased a new position in Universal Health Services in the 4th quarter worth about $29,000. Quent Capital LLC increased its position in shares of Universal Health Services by 118.3% during the fourth quarter. Quent Capital LLC now owns 179 shares of the health services provider’s stock worth $32,000 after acquiring an additional 97 shares during the period. True Wealth Design LLC purchased a new position in shares of Universal Health Services during the third quarter worth approximately $39,000. Huntington National Bank raised its stake in shares of Universal Health Services by 414.3% during the third quarter. Huntington National Bank now owns 180 shares of the health services provider’s stock valued at $41,000 after acquiring an additional 145 shares in the last quarter. Finally, Campbell Capital Management Inc. purchased a new stake in shares of Universal Health Services in the fourth quarter valued at approximately $46,000. 86.05% of the stock is currently owned by institutional investors.

Universal Health Services Stock Performance

The firm has a 50 day moving average of $184.47 and a 200-day moving average of $204.91. The company 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 quick ratio of 1.28, a current ratio of 1.39 and a debt-to-equity ratio of 0.69.

Universal Health Services (NYSE:UHS) last posted its quarterly earnings results on Wednesday, February 26th. The health services provider reported $4.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.21 by $0.71. The business had revenue of $4.11 billion for the quarter, compared to the consensus estimate of $4.01 billion. Universal Health Services had a return on equity of 15.75% and a net margin of 6.66%. As a group, sell-side analysts anticipate that Universal Health Services, Inc. will post 15.92 EPS for the current fiscal year.

Universal Health Services Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 17th. Stockholders of record on Monday, March 3rd will be issued a $0.20 dividend. The ex-dividend date is Monday, March 3rd. This represents a $0.80 annualized dividend and a dividend yield of 0.46%. Universal Health Services’s dividend payout ratio is currently 4.75%.

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.