Universal Health Services Inc. (UHS) Downgraded to “Sell” at Zacks Investment Research
According to Zacks, “Universal Health is expected to be hurt by margin contractions at both acute care and behavioural hospitals. Further, mounting debt levels remain a significant headwind for the company. Universal Health's second quarter 2016 results were mixed. While adjusted earnings were in-line with the Zacks Consensus Estimate, revenues beat the same comfortably. Meanwhile, the company's frequent acquisitions are poised for significant integration risks in our view. We are also concerned about the highly leveraged balance sheet, the upcoming presidential election, highly competitive markets and sluggish macroeconomic situations.”
A number of other analysts have also recently issued reports on UHS. Ladenburg Thalmann raised Universal Health Services from a not rated rating to an outperform rating in a research note on Monday, June 13th. Credit Suisse Group AG reissued a hold rating and set a $140.00 target price on shares of Universal Health Services in a research note on Wednesday, June 29th. Barclays PLC decreased their price target on shares of Universal Health Services from $150.00 to $147.00 and set an equal weight rating for the company in a research note on Thursday, July 28th. Leerink Swann reaffirmed a buy rating and set a $150.00 price target on shares of Universal Health Services in a research note on Friday, July 29th. Finally, JPMorgan Chase & Co. raised their price target on shares of Universal Health Services from $138.00 to $150.00 and gave the stock an overweight rating in a research note on Friday, July 29th. One analyst has rated the stock with a sell rating, six have given a hold rating and ten have issued a buy rating to the stock. Universal Health Services has a consensus rating of Buy and a consensus target price of $142.71.
Universal Health Services (NYSE:UHS) opened at 121.72 on Tuesday. Universal Health Services has a 52 week low of $100.82 and a 52 week high of $139.77. The stock has a 50 day moving average of $122.14 and a 200 day moving average of $128.37. The firm has a market cap of $11.85 billion, a PE ratio of 17.33 and a beta of 1.33.
Universal Health Services (NYSE:UHS) last posted its earnings results on Tuesday, July 26th. The company reported $1.94 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $1.94. Universal Health Services had a return on equity of 16.56% and a net margin of 7.43%. The business earned $2.43 billion during the quarter, compared to analysts’ expectations of $2.47 billion. During the same period in the prior year, the business earned $1.85 EPS. Universal Health Services’s revenue for the quarter was up 6.8% compared to the same quarter last year. Analysts anticipate that Universal Health Services will post $7.52 EPS for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Thursday, September 1st were given a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 0.33%. The ex-dividend date was Tuesday, August 30th. Universal Health Services’s dividend payout ratio is presently 5.68%.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Renaissance Technologies LLC boosted its position in Universal Health Services by 20.0% in the first quarter. Renaissance Technologies LLC now owns 215,000 shares of the company’s stock worth $26,815,000 after buying an additional 35,800 shares in the last quarter. National Pension Service boosted its position in Universal Health Services by 4.6% in the first quarter. National Pension Service now owns 60,009 shares of the company’s stock worth $7,484,000 after buying an additional 2,630 shares in the last quarter. Meeder Asset Management Inc. boosted its position in Universal Health Services by 361.6% in the second quarter. Meeder Asset Management Inc. now owns 5,170 shares of the company’s stock worth $692,000 after buying an additional 4,050 shares in the last quarter. Nisa Investment Advisors LLC boosted its position in Universal Health Services by 15.8% in the second quarter. Nisa Investment Advisors LLC now owns 42,354 shares of the company’s stock worth $5,680,000 after buying an additional 5,784 shares in the last quarter. Finally, AXA boosted its position in Universal Health Services by 6.8% in the first quarter. AXA now owns 69,039 shares of the company’s stock worth $8,610,000 after buying an additional 4,381 shares in the last quarter. Hedge funds and other institutional investors own 85.09% of the company’s stock.
About Universal Health Services
Universal Health Services, Inc is a holding company. The Company, through its subsidiaries, is engaged in owning and operating acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers. Its segment is acute care hospital services and behavioral healthcare services.
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