Universal Health Services (NYSE:UHS) Shares Gap Up on Earnings Beat

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 trading hands.

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 company had revenue of $4.11 billion for the quarter, compared to analyst estimates of $4.01 billion.

Universal Health Services Announces Dividend

The firm also recently declared 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. The ex-dividend date of this dividend is Monday, March 3rd. This represents a $0.80 dividend on an annualized basis and a yield of 0.41%. Universal Health Services’s dividend payout ratio is currently 5.32%.

Analyst Ratings Changes

A number of research firms have weighed in on UHS. 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 target on the stock. Wells Fargo & Company cut their price objective on Universal Health Services from $285.00 to $230.00 and set an “overweight” rating for the company in a report on Monday, November 25th. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $226.00 price target on shares of Universal Health Services in a report on Tuesday, December 17th. The Goldman Sachs Group cut Universal Health Services from a “buy” rating to a “neutral” rating and cut their price target for the company 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 research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $224.57.

Insider Transactions at Universal Health Services

In related news, Director Maria Ruderman Singer sold 1,614 shares of the stock in a transaction that occurred 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 directly owns 5,879 shares of the company’s stock, valued at approximately $1,123,770.85. This represents a 21.54 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 16.10% of the company’s stock.

Institutional Trading of Universal Health Services

Institutional investors have recently added to or reduced their stakes in the company. First Eagle Investment Management LLC grew its position in shares of Universal Health Services by 1.0% during the 4th quarter. First Eagle Investment Management LLC now owns 4,675,182 shares of the health services provider’s stock worth $838,821,000 after purchasing an additional 44,099 shares in the last quarter. State Street Corp raised its holdings in Universal Health Services by 0.6% in the 3rd quarter. State Street Corp now owns 2,724,075 shares of the health services provider’s stock valued at $623,840,000 after acquiring an additional 17,527 shares in the last quarter. Geode Capital Management LLC raised its holdings in Universal Health Services by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 1,713,572 shares of the health services provider’s stock valued at $306,776,000 after acquiring an additional 52,042 shares in the last quarter. Invesco Ltd. raised its holdings in Universal Health Services by 25.6% in the 4th quarter. Invesco Ltd. now owns 1,241,340 shares of the health services provider’s stock valued at $222,721,000 after acquiring an additional 253,385 shares in the last quarter. Finally, JPMorgan Chase & Co. raised its holdings in Universal Health Services by 0.9% in 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 acquiring an additional 10,578 shares in the last quarter. 86.05% of the stock is currently owned by institutional investors.

Universal Health Services Stock Performance

The company has a 50 day moving average price of $184.38 and a 200-day moving average price of $205.46. 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 has a market cap of $12.77 billion, a P/E ratio of 12.87, a price-to-earnings-growth ratio of 0.53 and a beta of 1.30.

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.