Universal Health Services (NYSE:UHS) Shares Gap Up on Earnings Beat

Universal Health Services, Inc. (NYSE:UHS) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $165.90, but opened at $174.95. Universal Health Services shares last traded at $162.90, with a volume of 332,525 shares trading hands.

The health services provider reported $3.70 EPS for the quarter, topping analysts’ consensus estimates of $3.14 by $0.56. The firm had revenue of $3.84 billion during the quarter, compared to the consensus estimate of $3.78 billion. Universal Health Services had a net margin of 5.03% and a return on equity of 12.08%. The firm’s revenue was up 10.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.34 earnings per share.

Wall Street Analysts Forecast Growth

A number of research firms have commented on UHS. The Goldman Sachs Group lifted their price objective on shares of Universal Health Services from $170.00 to $189.00 and gave the stock a “buy” rating in a report on Monday, March 4th. UBS Group lifted their price objective on shares of Universal Health Services from $152.00 to $177.00 and gave the stock a “neutral” rating in a report on Thursday, February 29th. Barclays assumed coverage on shares of Universal Health Services in a report on Wednesday, March 6th. They set an “equal weight” rating and a $181.00 price target for the company. TD Cowen boosted their price target on shares of Universal Health Services from $140.00 to $181.00 and gave the company a “market perform” rating in a report on Friday, March 1st. Finally, Mizuho boosted their price target on shares of Universal Health Services from $175.00 to $200.00 and gave the company a “buy” rating in a report on Wednesday, March 6th. One investment analyst has rated the stock with a sell rating, four have issued a hold rating and eight have assigned a buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $179.71.

Insiders Place Their Bets

In other Universal Health Services news, CFO Steve Filton sold 35,000 shares of the business’s stock in a transaction dated Friday, March 8th. The shares were sold at an average price of $176.82, for a total value of $6,188,700.00. Following the sale, the chief financial officer now directly owns 68,785 shares in the company, valued at $12,162,563.70. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 16.10% of the stock is owned by company insiders.

Institutional Trading of Universal Health Services

Several institutional investors and hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC grew its stake in Universal Health Services by 42.8% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 267 shares of the health services provider’s stock valued at $34,000 after acquiring an additional 80 shares in the last quarter. Mather Group LLC. bought a new stake in shares of Universal Health Services in the 1st quarter valued at approximately $36,000. Denali Advisors LLC bought a new stake in shares of Universal Health Services in the 1st quarter valued at approximately $37,000. GAMMA Investing LLC bought a new stake in shares of Universal Health Services in the 4th quarter valued at approximately $42,000. Finally, Kapitalo Investimentos Ltda bought a new stake in shares of Universal Health Services in the 4th quarter valued at approximately $55,000. Institutional investors and hedge funds own 86.05% of the company’s stock.

Universal Health Services Trading Down 1.8 %

The firm has a market cap of $10.95 billion, a P/E ratio of 16.16, a PEG ratio of 0.82 and a beta of 1.24. The company has a 50 day moving average of $170.50 and a 200 day moving average of $153.01. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.29 and a current ratio of 1.40.

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.