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

Universal Health Services, Inc. (NYSE:UHS)’s share price gapped up before the market opened 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 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.14 by $0.56. The company 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 5.57% and a return on equity of 13.43%. The firm’s revenue was up 10.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.34 EPS.

Analyst Ratings Changes

A number of analysts recently weighed in on the company. The Goldman Sachs Group boosted their target price on Universal Health Services from $170.00 to $189.00 and gave the stock a “buy” rating in a research report on Monday, March 4th. Wells Fargo & Company boosted their price objective on shares of Universal Health Services from $195.00 to $200.00 and gave the stock an “overweight” rating in a report on Thursday, March 28th. TD Cowen increased their target price 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. UBS Group lifted their target price on shares of Universal Health Services from $152.00 to $177.00 and gave the stock a “neutral” rating in a research report on Thursday, February 29th. Finally, Cantor Fitzgerald reaffirmed an “underweight” rating and set a $156.00 price objective on shares of Universal Health Services in a research note on Wednesday, April 10th. One analyst has rated the stock with a sell rating, five have issued a hold rating and eight have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $180.60.

Insiders Place Their Bets

In other news, CFO Steve Filton sold 35,000 shares of the stock in a transaction that occurred on Friday, March 8th. The stock was sold at an average price of $176.82, for a total value of $6,188,700.00. Following the completion of the transaction, the chief financial officer now owns 68,785 shares of the company’s stock, valued at approximately $12,162,563.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 16.10% of the stock is currently owned by company insiders.

Institutional Trading of Universal Health Services

Hedge funds and other institutional investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC grew its stake in shares of 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 worth $34,000 after buying an additional 80 shares during the last quarter. Mather Group LLC. purchased a new stake in shares of Universal Health Services in the first quarter worth $36,000. Denali Advisors LLC purchased a new stake in shares of Universal Health Services in the first quarter worth $37,000. GAMMA Investing LLC bought a new position in shares of Universal Health Services during the fourth quarter valued at $42,000. Finally, Kapitalo Investimentos Ltda purchased a new position in shares of Universal Health Services in the 4th quarter worth 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 fifty day simple moving average is $170.63 and its 200-day simple moving average is $153.34. The firm has a market capitalization of $11.16 billion, a PE ratio of 14.07, a PEG ratio of 0.83 and a beta of 1.24. The company has a quick ratio of 1.29, a current ratio of 1.40 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.