Universal Health Services (NYSE:UHS) Sees Unusually-High Trading Volume – Still a Buy?

Universal Health Services, Inc. (NYSE:UHS) saw unusually-high trading volume on Thursday . Approximately 425,949 shares traded hands during mid-day trading, a decline of 37% from the previous session’s volume of 673,548 shares.The stock last traded at $206.66 and had previously closed at $207.50.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. StockNews.com downgraded Universal Health Services from a “strong-buy” rating to a “buy” rating in a research report on Thursday. TD Cowen cut their price target on shares of Universal Health Services from $283.00 to $275.00 and set a “buy” rating for the company in a research note on Monday, October 28th. Wells Fargo & Company raised their price objective on shares of Universal Health Services from $255.00 to $275.00 and gave the company an “overweight” rating in a research report on Tuesday, October 22nd. Cantor Fitzgerald reaffirmed a “neutral” rating and set a $219.00 price objective on shares of Universal Health Services in a report on Friday, October 25th. Finally, Barclays increased their target price on Universal Health Services from $256.00 to $271.00 and gave the company an “overweight” rating in a research note on Friday, October 25th. Five investment analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Universal Health Services has a consensus rating of “Moderate Buy” and an average target price of $231.00.

Universal Health Services Stock Up 0.5 %

The company has a current ratio of 1.39, a quick ratio of 1.28 and a debt-to-equity ratio of 0.69. The stock has a 50 day simple moving average of $227.19 and a 200 day simple moving average of $202.09. The firm has a market capitalization of $13.69 billion, a PE ratio of 13.65, a PEG ratio of 0.65 and a beta of 1.29.

Universal Health Services (NYSE:UHS) last issued its earnings results on Thursday, October 24th. The health services provider reported $3.71 EPS for the quarter, missing the consensus estimate of $3.75 by ($0.04). The firm had revenue of $3.96 billion during the quarter, compared to analysts’ expectations of $3.90 billion. Universal Health Services had a return on equity of 15.75% and a net margin of 6.66%. The firm’s quarterly revenue was up 11.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.55 earnings per share. As a group, sell-side analysts forecast that Universal Health Services, Inc. will post 15.89 earnings per share for the current year.

Universal Health Services announced that its board has authorized a share buyback program on Wednesday, July 24th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the health services provider to purchase up to 8% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Insider Transactions at Universal Health Services

In other Universal Health Services news, Director Warren J. Nimetz sold 3,444 shares of the company’s stock in a transaction that occurred on Monday, August 12th. The stock was sold at an average price of $217.64, for a total transaction of $749,552.16. Following the completion of the transaction, the director now owns 3,971 shares of the company’s stock, valued at $864,248.44. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. In other news, Director Nina Chen-Langenmayr sold 850 shares of the firm’s stock in a transaction dated 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 sale, the director now directly owns 1,985 shares of the company’s stock, valued at approximately $421,038.35. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Warren J. Nimetz sold 3,444 shares of the business’s stock in a transaction dated Monday, August 12th. The shares were sold at an average price of $217.64, for a total transaction of $749,552.16. Following the transaction, the director now owns 3,971 shares in the company, valued at $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 company insiders.

Institutional Trading of Universal Health Services

Several institutional investors and hedge funds have recently bought and sold shares of UHS. Financial Management Professionals Inc. bought a new position in shares of Universal Health Services in the 3rd quarter worth approximately $32,000. Blue Trust Inc. grew its stake in Universal Health Services by 1,284.6% in the second quarter. Blue Trust Inc. now owns 180 shares of the health services provider’s stock worth $33,000 after purchasing an additional 167 shares during the period. Innealta Capital LLC bought a new position in Universal Health Services in the second quarter worth $35,000. Headlands Technologies LLC purchased a new position in Universal Health Services during the first quarter valued at $36,000. Finally, LRI Investments LLC purchased a new position in Universal Health Services during the first quarter valued at $43,000. 86.05% of the stock is currently 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.