Universal Health Services (NYSE:UHS) Releases Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Universal Health Services (NYSE:UHS) announced its quarterly earnings results on Thursday. The health services provider reported $3.71 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.75 by ($0.04), Briefing.com reports. Universal Health Services had a return on equity of 14.91% and a net margin of 6.22%. The company had revenue of $3.96 billion for the quarter, compared to the consensus estimate of $3.90 billion. During the same quarter last year, the company posted $2.55 EPS. The company’s quarterly revenue was up 11.3% compared to the same quarter last year.

Universal Health Services Stock Performance

Shares of UHS traded down $21.99 during trading hours on Friday, hitting $202.67. The company’s stock had a trading volume of 1,482,955 shares, compared to its average volume of 672,310. The business has a 50 day simple moving average of $230.03 and a two-hundred day simple moving average of $200.59. Universal Health Services has a 52-week low of $121.00 and a 52-week high of $243.25. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.28 and a quick ratio of 1.17. The company has a market cap of $13.56 billion, a price-to-earnings ratio of 17.27, a PEG ratio of 0.77 and a beta of 1.27.

Universal Health Services declared that its Board of Directors has authorized a share repurchase program on Wednesday, July 24th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the health services provider to buy up to 8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. Wells Fargo & Company upped their target price on shares of Universal Health Services from $255.00 to $275.00 and gave the stock an “overweight” rating in a research note on Tuesday. TD Cowen raised shares of Universal Health Services from a “hold” rating to a “buy” rating and lifted their target price for the stock from $220.00 to $283.00 in a research report on Wednesday, October 16th. The Goldman Sachs Group boosted their target price on Universal Health Services from $200.00 to $229.00 and gave the stock a “buy” rating in a research note on Tuesday, July 30th. Barclays upped their target price on Universal Health Services from $256.00 to $271.00 and gave the company an “overweight” rating in a report on Friday. Finally, Stephens reiterated an “equal weight” rating and set a $200.00 price target on shares of Universal Health Services in a report on Thursday, July 25th. Five research analysts have rated the stock with a hold rating, nine have given a buy rating and two have issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $232.46.

Insider Activity at Universal Health Services

In related news, Director Nina Chen-Langenmayr sold 850 shares of Universal Health Services stock in a transaction that occurred on Wednesday, August 7th. The shares were sold at an average price of $212.11, for a total value of $180,293.50. Following the completion of the transaction, the director now directly owns 1,985 shares in the company, valued at approximately $421,038.35. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, Director Nina Chen-Langenmayr sold 850 shares of the stock in a transaction dated Wednesday, August 7th. The stock was sold at an average price of $212.11, for a total transaction of $180,293.50. Following the sale, the director now owns 1,985 shares of the company’s stock, valued at approximately $421,038.35. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Warren J. Nimetz sold 3,444 shares of the firm’s stock in a transaction dated Monday, August 12th. The stock was sold at an average price of $217.64, for a total value of $749,552.16. Following the completion of the transaction, the director now owns 3,971 shares of the company’s stock, valued at approximately $864,248.44. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. 16.10% of the stock is currently owned by corporate insiders.

Universal Health Services Company Profile

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.