Universal Health Services (NYSE:UHS) Shares Gap Up After Better-Than-Expected Earnings

Universal Health Services, Inc. (NYSE:UHS) shares 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, topping 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 the consensus estimate of $4.01 billion.

Universal Health Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 17th. Investors of record on Monday, March 3rd will be given a $0.20 dividend. The ex-dividend date is Monday, March 3rd. This represents a $0.80 annualized dividend and a yield of 0.43%. Universal Health Services’s payout ratio is 5.32%.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $226.00 price target on shares of Universal Health Services in a research note on Tuesday, December 17th. Bank of America assumed coverage on shares of Universal Health Services in a report on Wednesday, November 6th. They issued a “neutral” rating and a $223.00 price objective on the stock. Stephens reaffirmed an “equal weight” rating and set a $210.00 target price on shares of Universal Health Services in a research note on Thursday. Barclays reduced their price target on shares of Universal Health Services from $271.00 to $249.00 and set an “overweight” rating on the stock in a research note on Thursday. Finally, Cantor Fitzgerald raised shares of Universal Health Services from a “neutral” rating to an “overweight” rating in a research 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 assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $225.29.

Insiders Place Their Bets

In other news, Director Maria Ruderman Singer sold 1,614 shares of Universal Health Services stock in a transaction dated Wednesday, December 11th. The stock was sold at an average price of $191.15, for a total value of $308,516.10. Following the completion of the transaction, the director now owns 5,879 shares in the company, valued at approximately $1,123,770.85. This trade represents a 21.54 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 16.10% of the company’s stock.

Institutional Trading of Universal Health Services

Several hedge funds have recently added to or reduced their stakes in the company. R Squared Ltd purchased a new stake in shares of Universal Health Services in the 4th quarter valued at approximately $29,000. Quent Capital LLC increased its holdings in Universal Health Services by 118.3% in the fourth quarter. Quent Capital LLC now owns 179 shares of the health services provider’s stock valued at $32,000 after buying an additional 97 shares during the last quarter. True Wealth Design LLC acquired a new stake in Universal Health Services in the third quarter valued at $39,000. Huntington National Bank raised its stake in Universal Health Services by 414.3% in the third quarter. Huntington National Bank now owns 180 shares of the health services provider’s stock valued at $41,000 after buying an additional 145 shares in the last quarter. Finally, Campbell Capital Management Inc. purchased a new stake in Universal Health Services during the 4th quarter worth about $46,000. Institutional investors and hedge funds own 86.05% of the company’s stock.

Universal Health Services Trading Up 2.9 %

The firm has a market capitalization of $12.22 billion, a price-to-earnings ratio of 12.32, a PEG ratio of 0.53 and a beta of 1.30. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.28 and a current ratio of 1.39. The company has a 50-day moving average price of $184.57 and a 200-day moving average price of $205.32.

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.