Universal Health Services (NYSE:UHS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Saturday.

According to Zacks, “Universal Health’s shares have underperformed the industry in last three months .The company is  exposed to integration risks owing to several acquisitions. Further, its highly leveraged balance sheet is a major headwind. Based upon the operating trends and financial results during the first nine months of 2017, the company has lowered its 2017 earnings guidance. However, its inorganic growth impresses. Consistent growth in its revenue base on the back of solid Acute Care and Behavioral Health platforms also remains a positive.”

Other equities analysts have also issued reports about the company. BMO Capital Markets assumed coverage on Universal Health Services in a research report on Monday, October 16th. They set an “outperform” rating and a $125.00 target price on the stock. Leerink Swann upped their target price on Universal Health Services from $130.00 to $132.00 and gave the stock an “outperform” rating in a research report on Friday, September 22nd. Royal Bank of Canada reaffirmed a “buy” rating and set a $134.00 target price on shares of Universal Health Services in a research report on Thursday. Credit Suisse Group assumed coverage on Universal Health Services in a research report on Thursday, November 2nd. They set an “outperform” rating and a $126.00 target price on the stock. Finally, Piper Jaffray Companies lowered Universal Health Services from an “overweight” rating to a “neutral” rating and set a $147.00 target price on the stock. in a research report on Wednesday. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and eleven have given a buy rating to the stock. The company has an average rating of “Buy” and an average price target of $130.50.

Universal Health Services (NYSE:UHS) opened at $111.97 on Friday. The stock has a market capitalization of $10,704.79, a P/E ratio of 15.38, a price-to-earnings-growth ratio of 2.38 and a beta of 0.97. Universal Health Services has a twelve month low of $95.26 and a twelve month high of $129.74. The company has a current ratio of 1.26, a quick ratio of 1.16 and a debt-to-equity ratio of 0.80.

Universal Health Services (NYSE:UHS) last issued its earnings results on Wednesday, October 25th. The health services provider reported $1.49 earnings per share for the quarter, missing analysts’ consensus estimates of $1.76 by ($0.27). Universal Health Services had a return on equity of 15.13% and a net margin of 6.90%. The firm had revenue of $2.51 billion for the quarter, compared to analyst estimates of $2.60 billion. During the same period in the previous year, the company earned $1.60 earnings per share. Universal Health Services’s revenue for the quarter was up 4.4% compared to the same quarter last year. sell-side analysts anticipate that Universal Health Services will post 7.36 earnings per share for the current fiscal year.

Universal Health Services declared that its board has authorized a stock repurchase program on Wednesday, November 15th that permits the company to buyback $400.00 million in shares. This buyback authorization permits the health services provider to reacquire shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Several hedge funds have recently bought and sold shares of UHS. Schwab Charles Investment Management Inc. grew its stake in shares of Universal Health Services by 7.9% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 304,135 shares of the health services provider’s stock worth $37,129,000 after acquiring an additional 22,168 shares during the period. Victory Capital Management Inc. grew its stake in shares of Universal Health Services by 16.2% during the 2nd quarter. Victory Capital Management Inc. now owns 11,327 shares of the health services provider’s stock worth $1,383,000 after acquiring an additional 1,581 shares during the period. Robeco Institutional Asset Management B.V. grew its stake in shares of Universal Health Services by 24.1% during the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 4,814 shares of the health services provider’s stock worth $588,000 after acquiring an additional 936 shares during the period. Pacer Advisors Inc. grew its stake in shares of Universal Health Services by 8.5% during the 2nd quarter. Pacer Advisors Inc. now owns 1,845 shares of the health services provider’s stock worth $225,000 after acquiring an additional 145 shares during the period. Finally, Cambridge Investment Research Advisors Inc. bought a new position in shares of Universal Health Services during the 2nd quarter worth $211,000. Institutional investors own 86.07% of the company’s stock.

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Universal Health Services Company Profile

Universal Health Services, Inc is a holding company. The Company’s principal business is owning and operating, through its subsidiaries, acute care hospitals and outpatient facilities, and behavioral healthcare facilities. The Company’s segments include Acute Care Hospital Services, Behavioral Health Services and Other.

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