Universal Health Services (NYSE:UHS) Stock Price Down 3.3% – Here’s Why

Universal Health Services, Inc. (NYSE:UHS)’s stock price traded down 3.3% on Thursday . The company traded as low as $191.00 and last traded at $191.00. 49,613 shares changed hands during trading, a decline of 93% from the average session volume of 680,324 shares. The stock had previously closed at $197.52.

Wall Street Analysts Forecast Growth

UHS has been the subject of several recent analyst reports. Bank of America started coverage on shares of Universal Health Services in a research note on Wednesday, November 6th. They set a “neutral” rating and a $223.00 price objective for the company. The Goldman Sachs Group upped their target price on Universal Health Services from $200.00 to $229.00 and gave the stock a “buy” rating in a report on Tuesday, July 30th. Barclays lifted their price target on shares of Universal Health Services from $256.00 to $271.00 and gave the company an “overweight” rating in a research report on Friday, October 25th. Royal Bank of Canada reduced their price target 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, Wells Fargo & Company upped their price objective on Universal Health Services from $275.00 to $285.00 and gave the company an “overweight” rating in a research report on Wednesday, November 6th. Six research 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 stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $231.14.

Universal Health Services Stock Down 0.3 %

The firm has a market capitalization of $12.99 billion, a PE ratio of 13.01, a PEG ratio of 0.63 and a beta of 1.29. The company has a fifty day moving average price of $219.39 and a 200-day moving average price of $205.95. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.28 and a current ratio of 1.39.

Universal Health Services (NYSE:UHS) last released its quarterly 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). Universal Health Services had a net margin of 6.66% and a return on equity of 15.75%. The company had revenue of $3.96 billion for the quarter, compared to analysts’ expectations of $3.90 billion. During the same quarter in the previous year, the company posted $2.55 EPS. The business’s quarterly revenue was up 11.3% on a year-over-year basis. As a group, analysts expect that Universal Health Services, Inc. will post 15.93 earnings per share for the current year.

Universal Health Services Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 17th. Shareholders of record on Tuesday, December 3rd will be issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 0.41%. Universal Health Services’s payout ratio is currently 5.32%.

Universal Health Services declared that its Board of Directors has approved a share repurchase program on Wednesday, July 24th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the health services provider to reacquire up to 8% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s leadership believes its stock is undervalued.

Institutional Investors Weigh In On Universal Health Services

Several institutional investors have recently added to or reduced their stakes in UHS. Financial Management Professionals Inc. acquired a new position in shares of Universal Health Services in the third quarter worth about $32,000. Blue Trust Inc. grew its holdings in Universal Health Services by 1,284.6% in the second quarter. Blue Trust Inc. now owns 180 shares of the health services provider’s stock valued at $33,000 after purchasing an additional 167 shares during the period. Innealta Capital LLC acquired a new position in shares of Universal Health Services during the 2nd quarter worth approximately $35,000. True Wealth Design LLC purchased a new position in shares of Universal Health Services during the 3rd quarter valued at approximately $39,000. Finally, Huntington National Bank raised its position 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 acquiring an additional 145 shares during the period. 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.