Universal Health Services, Inc. (NYSE:UHS) to Issue $0.20 Quarterly Dividend

Universal Health Services, Inc. (NYSE:UHS) declared a quarterly dividend on Wednesday, November 20th,RTT News reports. Investors of record on Tuesday, December 3rd will be paid a dividend of 0.20 per share by the health services provider on Tuesday, December 17th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.41%.

Universal Health Services has raised its dividend payment by an average of 58.7% annually over the last three years. Universal Health Services has a payout ratio of 4.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Universal Health Services to earn $17.71 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 4.5%.

Universal Health Services Price Performance

Universal Health Services stock traded up $0.73 during mid-day trading on Wednesday, hitting $197.52. 1,015,494 shares of the company were exchanged, compared to its average volume of 683,124. The company has a quick ratio of 1.28, a current ratio of 1.39 and a debt-to-equity ratio of 0.69. The business has a fifty day moving average of $220.04 and a 200 day moving average of $206.01. Universal Health Services has a 1-year low of $133.70 and a 1-year high of $243.25. The company has a market capitalization of $13.03 billion, a PE ratio of 13.08, a price-to-earnings-growth ratio of 0.64 and a beta of 1.29.

Universal Health Services (NYSE:UHS) last posted its quarterly earnings results on Thursday, October 24th. The health services provider reported $3.71 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.75 by ($0.04). The firm had revenue of $3.96 billion during the quarter, compared to the consensus estimate of $3.90 billion. Universal Health Services had a net margin of 6.66% and a return on equity of 15.75%. Universal Health Services’s revenue was up 11.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.55 EPS. As a group, sell-side analysts expect that Universal Health Services will post 15.93 earnings per share for the current year.

Analysts Set New Price Targets

A number of brokerages recently issued reports on UHS. Wells Fargo & Company lifted their target price 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. Stephens restated an “equal weight” rating and issued a $200.00 price target on shares of Universal Health Services in a research note on Thursday, July 25th. UBS Group lifted their price objective on Universal Health Services from $247.00 to $267.00 and gave the company a “buy” rating in a report on Wednesday, August 14th. Bank of America began coverage on Universal Health Services in a report on Wednesday, November 6th. They issued a “neutral” rating and a $223.00 price objective for the company. Finally, Barclays lifted their price objective on Universal Health Services from $256.00 to $271.00 and gave the company an “overweight” rating in a report on Friday, October 25th. Six research analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Universal Health Services has an average rating of “Moderate Buy” and a consensus target price of $231.14.

Universal Health Services announced that its board has approved a share buyback program on Wednesday, July 24th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the health services provider to reacquire up to 8% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Universal Health Services Company Profile

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.