LRI Investments LLC Grows Stake in Universal Health Services, Inc. (NYSE:UHS)

LRI Investments LLC lifted its stake in shares of Universal Health Services, Inc. (NYSE:UHS) by 19.5% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 386 shares of the health services provider’s stock after purchasing an additional 63 shares during the period. LRI Investments LLC’s holdings in Universal Health Services were worth $71,000 at the end of the most recent quarter.

A number of other hedge funds also recently modified their holdings of UHS. Benjamin F. Edwards & Company Inc. purchased a new stake in Universal Health Services in the first quarter worth $32,000. Blue Trust Inc. raised its stake in Universal Health Services by 1,284.6% in the 2nd quarter. Blue Trust Inc. now owns 180 shares of the health services provider’s stock valued at $33,000 after acquiring an additional 167 shares during the period. Headlands Technologies LLC purchased a new stake in Universal Health Services during the first quarter valued at about $36,000. Mather Group LLC. bought a new position in Universal Health Services during the first quarter worth about $36,000. Finally, Denali Advisors LLC bought a new position in Universal Health Services during the first quarter worth about $37,000. Institutional investors own 86.05% of the company’s stock.

Universal Health Services Price Performance

UHS stock traded up $3.85 during midday trading on Friday, reaching $233.14. The company had a trading volume of 684,942 shares, compared to its average volume of 654,291. The firm has a 50-day moving average price of $200.04 and a 200-day moving average price of $182.49. The company has a market capitalization of $15.60 billion, a P/E ratio of 19.76, a P/E/G ratio of 0.75 and a beta of 1.28. Universal Health Services, Inc. has a 1 year low of $119.90 and a 1 year high of $233.76. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.28 and a quick ratio of 1.17.

Universal Health Services (NYSE:UHS) last released its quarterly earnings results on Wednesday, July 24th. The health services provider reported $4.31 earnings per share for the quarter, beating analysts’ consensus estimates of $3.37 by $0.94. Universal Health Services had a return on equity of 14.91% and a net margin of 6.22%. The business had revenue of $3.91 billion for the quarter, compared to the consensus estimate of $3.87 billion. During the same quarter last year, the business posted $2.53 earnings per share. The company’s revenue for the quarter was up 10.1% on a year-over-year basis. On average, research analysts anticipate that Universal Health Services, Inc. will post 15.91 earnings per share for the current fiscal year.

Universal Health Services Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 17th. Investors of record on Tuesday, September 3rd will be given a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, September 3rd. This represents a $0.80 dividend on an annualized basis and a yield of 0.34%. Universal Health Services’s payout ratio is 6.78%.

Universal Health Services announced that its board has authorized a share buyback program on Wednesday, July 24th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the health services provider to purchase up to 8% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, EVP Matthew Jay Peterson sold 15,141 shares of the stock in a transaction on Friday, July 26th. The shares were sold at an average price of $210.85, for a total transaction of $3,192,479.85. Following the transaction, the executive vice president now owns 5,253 shares of the company’s stock, valued at approximately $1,107,595.05. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. In other Universal Health Services news, Director Eileen C. Mcdonnell sold 2,535 shares of Universal Health Services stock in a transaction that occurred on Friday, July 26th. The stock was sold at an average price of $209.55, for a total value of $531,209.25. Following the transaction, the director now directly owns 6,413 shares of the company’s stock, valued at approximately $1,343,844.15. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Matthew Jay Peterson sold 15,141 shares of the stock in a transaction that occurred on Friday, July 26th. The shares were sold at an average price of $210.85, for a total value of $3,192,479.85. Following the sale, the executive vice president now directly owns 5,253 shares of the company’s stock, valued at approximately $1,107,595.05. The disclosure for this sale can be found here. Insiders sold a total of 21,970 shares of company stock valued at $4,653,535 over the last quarter. 16.10% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of analysts recently commented on UHS shares. Wells Fargo & Company upped their price target on shares of Universal Health Services from $200.00 to $255.00 and gave the company an “overweight” rating in a research note on Tuesday, July 30th. Baird R W upgraded Universal Health Services from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, June 26th. Stephens reiterated an “equal weight” rating and issued a $200.00 price target on shares of Universal Health Services in a research report on Thursday, July 25th. TD Cowen boosted their price objective on Universal Health Services from $183.00 to $220.00 and gave the company a “hold” rating in a research note on Friday, July 26th. Finally, Royal Bank of Canada raised their target price on Universal Health Services from $183.00 to $189.00 and gave the stock a “sector perform” rating in a research note on Tuesday, May 7th. Five analysts have rated the stock with a hold rating, eight have given a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $219.46.

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.