Universal Health Services (NYSE:UHS) Raised to “Buy” at TD Cowen

TD Cowen upgraded shares of Universal Health Services (NYSE:UHS) from a hold rating to a buy rating in a research note issued to investors on Wednesday morning, Marketbeat.com reports. They currently have $283.00 target price on the health services provider’s stock, up from their prior target price of $220.00.

Other analysts also recently issued reports about the company. KeyCorp started coverage on Universal Health Services in a report on Friday, October 11th. They set a “sector weight” rating for the company. Royal Bank of Canada boosted their price objective on Universal Health Services from $189.00 to $222.00 and gave the company a “sector perform” rating in a research note on Monday, September 9th. Baird R W raised Universal Health Services from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, June 26th. StockNews.com downgraded Universal Health Services from a “strong-buy” rating to a “buy” rating in a research note on Friday, October 11th. Finally, Stephens reissued an “equal weight” rating and issued a $200.00 price objective on shares of Universal Health Services in a research note on Thursday, July 25th. Five research analysts have rated the stock with a hold rating, nine have issued a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $229.77.

Universal Health Services Price Performance

Shares of UHS opened at $236.67 on Wednesday. The business has a 50-day moving average of $229.19 and a 200-day moving average of $199.16. Universal Health Services has a 1 year low of $119.90 and a 1 year high of $243.25. The company has a market capitalization of $15.84 billion, a price-to-earnings ratio of 20.06, a price-to-earnings-growth ratio of 0.73 and a beta of 1.27. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.28 and a quick ratio of 1.17.

Universal Health Services (NYSE:UHS) last issued its quarterly earnings results on Wednesday, July 24th. The health services provider reported $4.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.37 by $0.94. Universal Health Services had a net margin of 6.22% and a return on equity of 14.91%. The firm had revenue of $3.91 billion for the quarter, compared to the consensus estimate of $3.87 billion. During the same quarter in the previous year, the company earned $2.53 EPS. The company’s revenue for the quarter was up 10.1% on a year-over-year basis. As a group, equities research analysts anticipate that Universal Health Services will post 15.87 earnings per share for the current year.

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

Insider Transactions at Universal Health Services

In other news, Director Eileen C. Mcdonnell sold 2,535 shares of the company’s stock in a transaction that occurred on Friday, July 26th. The stock was sold at an average price of $209.55, for a total transaction of $531,209.25. Following the transaction, the director now directly owns 6,413 shares of the company’s stock, valued at $1,343,844.15. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In related news, Director Eileen C. Mcdonnell sold 2,535 shares of the stock in a transaction on Friday, July 26th. The stock was sold at an average price of $209.55, for a total value of $531,209.25. Following the completion of the sale, the director now directly owns 6,413 shares of the company’s stock, valued at approximately $1,343,844.15. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Matthew Jay Peterson sold 15,141 shares of the stock in a transaction on Friday, July 26th. The shares were sold at an average price of $210.85, for a total value of $3,192,479.85. Following the completion of the sale, the executive vice president now directly owns 5,253 shares of the company’s stock, valued at $1,107,595.05. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 21,970 shares of company stock valued at $4,653,535 over the last ninety days. 16.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Universal Health Services

A number of institutional investors and hedge funds have recently bought and sold shares of UHS. Point72 Asset Management L.P. raised its position in Universal Health Services by 362.3% in the 2nd quarter. Point72 Asset Management L.P. now owns 322,626 shares of the health services provider’s stock valued at $59,663,000 after buying an additional 252,846 shares during the last quarter. Marshall Wace LLP increased its position in shares of Universal Health Services by 357.9% during the 2nd quarter. Marshall Wace LLP now owns 261,221 shares of the health services provider’s stock valued at $48,308,000 after purchasing an additional 204,178 shares during the last quarter. Lazard Asset Management LLC increased its position in shares of Universal Health Services by 1,191.8% during the 1st quarter. Lazard Asset Management LLC now owns 215,215 shares of the health services provider’s stock valued at $39,267,000 after purchasing an additional 198,555 shares during the last quarter. Lord Abbett & CO. LLC purchased a new stake in shares of Universal Health Services during the 1st quarter valued at $25,032,000. Finally, Pzena Investment Management LLC increased its position in shares of Universal Health Services by 41.2% during the 1st quarter. Pzena Investment Management LLC now owns 455,773 shares of the health services provider’s stock valued at $83,160,000 after purchasing an additional 132,942 shares during the last quarter. 86.05% of the stock is owned by hedge funds and other institutional investors.

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.