Universal Health Services (NYSE:UHS) Shares Gap Down After Earnings Miss

Universal Health Services, Inc. (NYSE:UHS)’s stock price gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $224.66, but opened at $208.00. Universal Health Services shares last traded at $207.18, with a volume of 277,375 shares changing hands.

The health services provider reported $3.71 earnings per share for the quarter, missing analysts’ consensus estimates of $3.75 by ($0.04). The business had revenue of $3.96 billion during the quarter, compared to analyst estimates of $3.90 billion. Universal Health Services had a return on equity of 14.91% and a net margin of 6.22%. The company’s revenue was up 11.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.55 EPS.

Universal Health Services announced that its board has approved a stock buyback plan on Wednesday, July 24th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the health services provider to reacquire up to 8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on UHS. Royal Bank of Canada upped their target price on Universal Health Services from $189.00 to $222.00 and gave the company a “sector perform” rating in a report on Monday, September 9th. KeyCorp assumed coverage on Universal Health Services in a research note on Friday, October 11th. They issued a “sector weight” rating for the company. TD Cowen upgraded 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 note on Wednesday, October 16th. Cantor Fitzgerald restated a “neutral” rating and set a $219.00 price target on shares of Universal Health Services in a research report on Tuesday, October 1st. Finally, Robert W. Baird lifted their price objective on shares of Universal Health Services from $236.00 to $274.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 4th. Five investment analysts have rated the stock with a hold rating, nine have issued a buy rating and two have assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $231.31.

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 other news, Director Nina Chen-Langenmayr sold 850 shares of the firm’s stock in a transaction on Wednesday, August 7th. The stock was 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 of the company’s stock, valued at $421,038.35. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Warren J. Nimetz sold 3,444 shares of the business’s stock in a transaction on Monday, August 12th. The shares were sold at an average price of $217.64, for a total value of $749,552.16. Following the sale, the director now owns 3,971 shares in the company, valued at approximately $864,248.44. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 16.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Universal Health Services

A number of large investors have recently modified their holdings of UHS. Financial Management Professionals Inc. bought a new position in Universal Health Services in the 3rd quarter valued at $32,000. Benjamin F. Edwards & Company Inc. purchased a new position in Universal Health Services during the first quarter worth about $32,000. Blue Trust Inc. grew its position in Universal Health Services by 1,284.6% during the second quarter. Blue Trust Inc. now owns 180 shares of the health services provider’s stock worth $33,000 after buying an additional 167 shares in the last quarter. Innealta Capital LLC bought a new position in Universal Health Services in the 2nd quarter worth about $35,000. Finally, Headlands Technologies LLC purchased a new stake in shares of Universal Health Services in the 1st quarter valued at about $36,000. 86.05% of the stock is currently owned by institutional investors.

Universal Health Services Trading Down 7.9 %

The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.17 and a current ratio of 1.28. The stock has a market cap of $13.80 billion, a P/E ratio of 15.18, a P/E/G ratio of 0.77 and a beta of 1.27. The stock has a 50-day moving average price of $230.03 and a 200-day moving average price of $200.59.

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.