Universal Health Services (NYSE:UHS) Shares Down 5.7% on Analyst Downgrade

Universal Health Services, Inc. (NYSE:UHS) traded down 5.7% during mid-day trading on Wednesday after Wells Fargo & Company downgraded the stock from an overweight rating to an equal weight rating. Wells Fargo & Company now has a $235.00 price target on the stock, down from their previous price target of $259.00. Universal Health Services traded as low as $209.03 and last traded at $209.0790. 438,264 shares were traded during mid-day trading, a decline of 37% from the average session volume of 695,412 shares. The stock had previously closed at $221.74.

Several other brokerages also recently issued reports on UHS. Weiss Ratings reissued a “buy (b)” rating on shares of Universal Health Services in a research note on Monday, December 29th. Zacks Research upgraded Universal Health Services from a “hold” rating to a “strong-buy” rating in a report on Monday, October 27th. Wall Street Zen raised shares of Universal Health Services from a “buy” rating to a “strong-buy” rating in a research report on Saturday, October 11th. Guggenheim raised their price target on shares of Universal Health Services from $253.00 to $274.00 and gave the stock a “buy” rating in a report on Tuesday, December 2nd. Finally, Raymond James Financial set a $270.00 price objective on shares of Universal Health Services and gave the company an “outperform” rating in a research report on Monday, November 3rd. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $234.20.

Insider Transactions at Universal Health Services

In other Universal Health Services news, Director Warren J. Nimetz sold 3,817 shares of the stock in a transaction on Tuesday, November 11th. The stock was sold at an average price of $223.30, for a total value of $852,336.10. Following the transaction, the director directly owned 8,481 shares in the company, valued at approximately $1,893,807.30. This trade represents a 31.04% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Elliot J. Md Mba Sussman sold 965 shares of Universal Health Services stock in a transaction on Wednesday, October 29th. The stock was sold at an average price of $225.70, for a total transaction of $217,800.50. Following the sale, the director directly owned 6,113 shares of the company’s stock, valued at $1,379,704.10. This represents a 13.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 16.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Universal Health Services

Several institutional investors and hedge funds have recently added to or reduced their stakes in UHS. Allspring Global Investments Holdings LLC lifted its holdings in shares of Universal Health Services by 34.9% in the third quarter. Allspring Global Investments Holdings LLC now owns 68,501 shares of the health services provider’s stock valued at $13,941,000 after purchasing an additional 17,728 shares in the last quarter. Board of the Pension Protection Fund bought a new stake in Universal Health Services during the third quarter worth $961,000. Exchange Traded Concepts LLC raised its position in Universal Health Services by 66.1% in the 3rd quarter. Exchange Traded Concepts LLC now owns 42,198 shares of the health services provider’s stock valued at $8,627,000 after buying an additional 16,789 shares during the last quarter. Wealth Enhancement Advisory Services LLC lifted its stake in Universal Health Services by 16.6% during the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 10,029 shares of the health services provider’s stock valued at $1,851,000 after acquiring an additional 1,430 shares in the last quarter. Finally, Capital Fund Management S.A. boosted its holdings in Universal Health Services by 12.9% during the 2nd quarter. Capital Fund Management S.A. now owns 94,086 shares of the health services provider’s stock worth $17,044,000 after acquiring an additional 10,754 shares during the last quarter. 86.05% of the stock is owned by institutional investors.

Universal Health Services Stock Up 1.4%

The company has a current ratio of 1.03, a quick ratio of 0.96 and a debt-to-equity ratio of 0.55. The stock has a market capitalization of $13.20 billion, a PE ratio of 10.03, a P/E/G ratio of 0.65 and a beta of 1.28. The stock’s fifty day simple moving average is $226.95 and its 200-day simple moving average is $200.60.

Universal Health Services (NYSE:UHS) last announced its earnings results on Tuesday, October 28th. The health services provider reported $5.69 earnings per share for the quarter, topping analysts’ consensus estimates of $4.66 by $1.03. The firm had revenue of $4.50 billion for the quarter, compared to the consensus estimate of $4.32 billion. Universal Health Services had a return on equity of 19.47% and a net margin of 8.09%.The company’s revenue was up 13.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.71 EPS. As a group, sell-side analysts forecast that Universal Health Services, Inc. will post 15.92 EPS for the current fiscal year.

Universal Health Services Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 1st were paid a $0.20 dividend. The ex-dividend date was Monday, December 1st. This represents a $0.80 annualized dividend and a yield of 0.4%. Universal Health Services’s dividend payout ratio is currently 3.80%.

About Universal Health Services

Universal Health Services, Inc (NYSE: UHS) is one of the largest diversified health care management companies in the United States, offering a broad spectrum of services through its acute care hospital and behavioral health segments. The company operates general acute care hospitals, surgical hospitals and ambulatory centers, as well as inpatient and outpatient behavioral health facilities. Its network provides emergency and specialized medicine, diagnostic imaging, laboratory services, advanced surgical care and rehabilitation, complemented by a comprehensive array of behavioral services including psychiatric treatment, addiction programs and developmental disabilities care.

In the acute care segment, UHS’s facilities deliver services ranging from emergency department treatment and intensive care to maternity care and outpatient surgery.