Universal Health Services (NYSE:UHS) Issues Earnings Results, Misses Expectations By $0.04 EPS

Universal Health Services (NYSE:UHS) announced its earnings results on Thursday. The health services provider reported $3.71 earnings per share for the quarter, missing the consensus estimate of $3.75 by ($0.04), Briefing.com reports. Universal Health Services had a net margin of 6.22% and a return on equity of 14.91%. The firm had revenue of $3.96 billion during the quarter, compared to analyst estimates of $3.90 billion. During the same period in the previous year, the firm posted $2.55 EPS. The company’s revenue for the quarter was up 11.3% compared to the same quarter last year.

Universal Health Services Stock Performance

Shares of NYSE UHS opened at $202.67 on Friday. The stock has a 50 day simple moving average of $229.55 and a 200-day simple moving average of $200.81. The company has a current ratio of 1.28, a quick ratio of 1.17 and a debt-to-equity ratio of 0.67. The company has a market cap of $13.56 billion, a PE ratio of 17.18, a P/E/G ratio of 0.77 and a beta of 1.27. Universal Health Services has a 12-month low of $121.00 and a 12-month high of $243.25.

Analyst Upgrades and Downgrades

UHS has been the subject of a number of analyst reports. TD Cowen raised shares of Universal Health Services from a “hold” rating to a “buy” rating and boosted their price objective for the company from $220.00 to $283.00 in a research report on Wednesday, October 16th. Royal Bank of Canada boosted their target price on shares of Universal Health Services from $189.00 to $222.00 and gave the company a “sector perform” rating in a report on Monday, September 9th. UBS Group boosted their price objective on shares of Universal Health Services from $247.00 to $267.00 and gave the company a “buy” rating in a research note on Wednesday, August 14th. Barclays lifted their target price on Universal Health Services from $256.00 to $271.00 and gave the company an “overweight” rating in a report on Friday. Finally, KeyCorp started coverage on Universal Health Services in a report on Friday, October 11th. They set a “sector weight” rating for the company. Five equities research analysts have rated the stock with a hold rating, nine have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Universal Health Services currently has a consensus rating of “Moderate Buy” and an average price target of $232.46.

Insider Buying and Selling

In related news, Director Warren J. Nimetz sold 3,444 shares of the business’s stock in a transaction that occurred on Monday, August 12th. The stock was sold at an average price of $217.64, for a total transaction of $749,552.16. Following the sale, the director now owns 3,971 shares of the company’s stock, valued at $864,248.44. The trade was a 0.00 % 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. In related news, Director Nina Chen-Langenmayr sold 850 shares of Universal Health Services stock in a transaction on Wednesday, August 7th. The stock was sold at an average price of $212.11, for a total value of $180,293.50. Following the transaction, the director now directly owns 1,985 shares in the company, valued at $421,038.35. The trade was a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Warren J. Nimetz sold 3,444 shares of the company’s stock in a transaction dated Monday, August 12th. The shares were sold at an average price of $217.64, for a total transaction of $749,552.16. Following the sale, the director now directly owns 3,971 shares of the company’s stock, valued at $864,248.44. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 16.10% of the company’s stock.

Universal Health Services announced that its Board of Directors has approved a stock repurchase plan on Wednesday, July 24th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the health services provider to reacquire up to 8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

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.