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

Universal Health Services, Inc. (NYSE:UHS)’s share price gapped up before the market opened 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.

The health services provider reported $4.92 EPS for the quarter, beating analysts’ consensus estimates 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 business had revenue of $4.11 billion for the quarter, compared to analysts’ expectations of $4.01 billion.

Universal Health Services Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 17th. Shareholders of record on Monday, March 3rd will be paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 0.43%. The ex-dividend date is Monday, March 3rd. Universal Health Services’s dividend payout ratio is presently 5.32%.

Analyst Ratings Changes

A number of research analysts have recently issued reports on UHS shares. JPMorgan Chase & Co. reissued a “neutral” rating and issued a $226.00 target price on shares of Universal Health Services in a report 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 for the company in a research report on Thursday. StockNews.com lowered shares of Universal Health Services from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 9th. The Goldman Sachs Group cut shares of Universal Health Services from a “buy” rating to a “neutral” rating and cut their price target for the stock from $228.00 to $198.00 in a report on Monday, December 16th. Finally, Cantor Fitzgerald raised Universal Health Services from a “neutral” rating to an “overweight” rating in a report on Monday, February 3rd. Six investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $225.29.

Insider Activity at Universal Health Services

In other news, Director Maria Ruderman Singer sold 1,614 shares of Universal Health Services stock in a transaction on Wednesday, December 11th. The stock was sold at an average price of $191.15, for a total value of $308,516.10. Following the completion of the sale, the director now owns 5,879 shares of the company’s stock, valued at $1,123,770.85. The trade was a 21.54 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 16.10% of the company’s stock.

Institutional Trading of Universal Health Services

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

Universal Health Services Price Performance

The company has a market capitalization of $12.22 billion, a PE ratio of 12.32, a PEG ratio of 0.53 and a beta of 1.30. The company has a current ratio of 1.39, a quick ratio of 1.28 and a debt-to-equity ratio of 0.69. The company’s 50 day moving average price is $184.57 and its 200-day moving average price is $205.32.

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.