Universal Health Services Inc. (NYSE:UHS) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Monday.
According to Zacks, “Universal Health's robust inorganic growth story has been significantly contributing to its strong revenue base for long. Moreover, the U.S healthcare industry itself contains immense untapped opportunities with the rising numbers of baby boomers. The company’s Solid Acute-care Platform and Behavioral platform are two major strengths of Universal Health. However, it is severely exposed to integration risk stemmed from its numerous acquisitions. The company’s highly levered balance sheet is another major headwind. Universal Health is also expected to be hurt by margin contraction at both acute care and behavioral hospitals. Highly competitive markets and sluggish macroeconomic situations have again raised concerns for the company. In the recently reported third quarter, adjusted earnings missed the Zacks Consensus Estimate and led to the narrowing of the upper end of its full-year earnings guidance.”
A number of other research analysts have also weighed in on the stock. Bank of America Corp. lowered shares of Universal Health Services from a “buy” rating to a “neutral” rating and decreased their price target for the company from $150.00 to $135.00 in a research note on Wednesday, November 9th. Wolfe Research initiated coverage on shares of Universal Health Services in a research note on Tuesday, October 25th. They issued a “market perform” rating on the stock. Credit Suisse Group AG reaffirmed a “hold” rating and issued a $130.00 price target on shares of Universal Health Services in a research note on Tuesday, August 30th. Avondale Partners lowered shares of Universal Health Services from an “outperform” rating to a “market perform” rating in a research note on Wednesday, November 9th. Finally, Mizuho lowered shares of Universal Health Services from a “buy” rating to a “neutral” rating and set a $133.00 price target on the stock. in a research note on Wednesday, November 9th. Ten research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. Universal Health Services presently has a consensus rating of “Hold” and an average price target of $141.00.
Universal Health Services (NYSE:UHS) traded down 0.442% during trading on Monday, reaching $122.625. The company had a trading volume of 249,561 shares. Universal Health Services has a 52 week low of $100.82 and a 52 week high of $139.77. The stock has a 50 day moving average price of $122.15 and a 200 day moving average price of $127.42.
Universal Health Services (NYSE:UHS) last posted its earnings results on Wednesday, October 26th. The company reported $1.60 EPS for the quarter, missing the Zacks’ consensus estimate of $1.68 by $0.08. Universal Health Services had a net margin of 7.31% and a return on equity of 16.35%. The business had revenue of $2.61 billion for the quarter, compared to analyst estimates of $2.40 billion. During the same quarter last year, the business earned $1.53 earnings per share. Universal Health Services’s revenue was up 7.0% on a year-over-year basis. Equities research analysts anticipate that Universal Health Services will post $7.34 EPS for the current year.
The company also recently declared a quarterly dividend, which will be paid on Thursday, December 15th. Stockholders of record on Thursday, December 1st will be issued a dividend of $0.10 per share. The ex-dividend date is Tuesday, November 29th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.32%. Universal Health Services’s dividend payout ratio is currently 5.63%.
Hedge funds have recently made changes to their positions in the company. Atlantic Trust Group LLC increased its stake in Universal Health Services by 0.7% in the second quarter. Atlantic Trust Group LLC now owns 112,319 shares of the company’s stock valued at $15,062,000 after buying an additional 818 shares during the period. Polar Capital LLP bought a new stake in Universal Health Services during the second quarter valued at $18,774,000. Artemis Investment Management LLP increased its stake in Universal Health Services by 598.2% in the second quarter. Artemis Investment Management LLP now owns 160,098 shares of the company’s stock valued at $21,467,000 after buying an additional 137,168 shares during the period. Meeder Asset Management Inc. increased its stake in Universal Health Services by 361.6% in the second quarter. Meeder Asset Management Inc. now owns 5,170 shares of the company’s stock valued at $692,000 after buying an additional 4,050 shares during the period. Finally, Nisa Investment Advisors LLC increased its stake in Universal Health Services by 15.8% in the second quarter. Nisa Investment Advisors LLC now owns 42,354 shares of the company’s stock valued at $5,680,000 after buying an additional 5,784 shares during the period. Institutional investors and hedge funds own 85.69% of the company’s stock.
About Universal Health Services
Universal Health Services, Inc is a holding company. The Company, through its subsidiaries, is engaged in owning and operating acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers. Its segment is acute care hospital services and behavioral healthcare services.