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

Universal Health Services, Inc. (NYSE:UHS)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. 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 changing hands.

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

Analysts Set New Price Targets

Several analysts have commented on the stock. Deutsche Bank Aktiengesellschaft decreased their price target on shares of Universal Health Services from $208.00 to $203.00 and set a “buy” rating on the stock in a research note on Friday, April 12th. Citigroup boosted their price target on shares of Universal Health Services from $170.00 to $193.00 and gave the stock a “buy” rating in a research note on Thursday, February 29th. Wells Fargo & Company boosted their price target on shares of Universal Health Services from $195.00 to $200.00 and gave the stock an “overweight” rating in a research note on Thursday, March 28th. The Goldman Sachs Group boosted their price target on shares of Universal Health Services from $170.00 to $189.00 and gave the stock a “buy” rating in a research note on Monday, March 4th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Universal Health Services from $144.00 to $182.00 and gave the stock a “neutral” rating in a report on Wednesday, March 13th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and eight have issued a buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $179.71.

Insider Activity at Universal Health Services

In related news, CFO Steve Filton sold 35,000 shares of the company’s stock in a transaction dated Friday, March 8th. The shares were sold at an average price of $176.82, for a total transaction of $6,188,700.00. Following the transaction, the chief financial officer now directly owns 68,785 shares in the company, valued at approximately $12,162,563.70. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 16.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Universal Health Services

Large investors have recently added to or reduced their stakes in the stock. Mather Group LLC. purchased a new stake in Universal Health Services in the 1st quarter valued at about $36,000. Denali Advisors LLC purchased a new stake in Universal Health Services in the 1st quarter valued at about $37,000. EverSource Wealth Advisors LLC boosted its position in Universal Health Services by 42.8% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 267 shares of the health services provider’s stock valued at $34,000 after buying an additional 80 shares during the period. GAMMA Investing LLC purchased a new stake in Universal Health Services in the 4th quarter valued at about $42,000. Finally, Kapitalo Investimentos Ltda purchased a new stake in Universal Health Services in the 4th quarter valued at about $55,000. 86.05% of the stock is owned by hedge funds and other institutional investors.

Universal Health Services Price Performance

The firm’s 50-day moving average price is $170.50 and its two-hundred day moving average price is $153.01. The stock has a market cap of $10.95 billion, a PE ratio of 16.16, a PEG ratio of 0.82 and a beta of 1.24. The company has a current ratio of 1.40, a quick ratio of 1.29 and a debt-to-equity ratio of 0.77.

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.