Universal Health Services (NYSE:UHS) Shares Down 8.5% – What’s Next?

Universal Health Services, Inc. (NYSE:UHS) fell 8.5% during mid-day trading on Monday . The company traded as low as $170.52 and last traded at $173.31. 297,856 shares changed hands during trading, a decline of 60% from the average session volume of 752,638 shares. The stock had previously closed at $189.39.

Analysts Set New Price Targets

Several analysts have commented on the stock. Wells Fargo & Company lowered their target price on shares of Universal Health Services from $230.00 to $225.00 and set an “overweight” rating for the company in a research note on Monday, March 10th. Baird R W downgraded Universal Health Services from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 15th. Stephens upgraded Universal Health Services to a “hold” rating in a research report on Monday, June 2nd. Royal Bank of Canada decreased their price target on Universal Health Services from $211.00 to $201.00 and set a “sector perform” rating on the stock in a research note on Wednesday, April 30th. Finally, Barclays lifted their price target on Universal Health Services from $249.00 to $257.00 and gave the company an “overweight” rating in a report on Tuesday, April 29th. Nine research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $224.77.

Universal Health Services Stock Down 2.8%

The firm’s 50-day moving average price is $181.54 and its 200-day moving average price is $183.57. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.39 and a quick ratio of 1.28. The company has a market cap of $11.23 billion, a price-to-earnings ratio of 11.48, a price-to-earnings-growth ratio of 0.53 and a beta of 1.31.

Universal Health Services (NYSE:UHS) last announced its quarterly earnings results on Monday, April 28th. The health services provider reported $4.84 earnings per share for the quarter, topping analysts’ consensus estimates of $4.36 by $0.48. Universal Health Services had a net margin of 6.66% and a return on equity of 15.75%. The firm had revenue of $4.10 billion during the quarter, compared to analysts’ expectations of $4.16 billion. During the same period in the prior year, the company earned $3.70 EPS. The firm’s revenue was up 6.7% on a year-over-year basis. Sell-side analysts forecast that Universal Health Services, Inc. will post 15.92 earnings per share for the current fiscal year.

Universal Health Services Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 16th. Investors of record on Monday, June 2nd will be issued a dividend of $0.20 per share. The ex-dividend date of this dividend is Monday, June 2nd. This represents a $0.80 annualized dividend and a dividend yield of 0.46%. Universal Health Services’s payout ratio is currently 4.49%.

Insiders Place Their Bets

In other news, Director Maria Ruderman Singer sold 1,097 shares of the business’s stock in a transaction on Wednesday, May 14th. The shares were sold at an average price of $191.48, for a total transaction of $210,053.56. Following the transaction, the director now directly owns 7,884 shares of the company’s stock, valued at approximately $1,509,628.32. The trade was a 12.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 16.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Universal Health Services

A number of institutional investors have recently added to or reduced their stakes in UHS. D. E. Shaw & Co. Inc. increased its position in shares of Universal Health Services by 99.2% during the fourth quarter. D. E. Shaw & Co. Inc. now owns 12,450 shares of the health services provider’s stock worth $2,234,000 after acquiring an additional 6,200 shares during the last quarter. Allspring Global Investments Holdings LLC increased its holdings in Universal Health Services by 22.5% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 54,105 shares of the health services provider’s stock worth $9,721,000 after purchasing an additional 9,946 shares during the last quarter. Savant Capital LLC raised its position in shares of Universal Health Services by 255.3% in the 4th quarter. Savant Capital LLC now owns 6,345 shares of the health services provider’s stock valued at $1,138,000 after purchasing an additional 4,559 shares in the last quarter. Abacus Planning Group Inc. raised its position in shares of Universal Health Services by 175.6% in the 4th quarter. Abacus Planning Group Inc. now owns 2,792 shares of the health services provider’s stock valued at $501,000 after purchasing an additional 1,779 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its stake in shares of Universal Health Services by 0.9% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,197,537 shares of the health services provider’s stock valued at $274,248,000 after buying an additional 10,578 shares during the last quarter. Institutional investors and hedge funds 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.