Universal Health Services Inc. (UHS) Upgraded to “Hold” by Zacks Investment Research
According to Zacks, “Universal Health is expected to be hurt by margin contraction 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 might result in integration risks. In fact, a highly leveraged balance sheet, the upcoming presidential election, highly competitive markets and sluggish macroeconomic situations are added concerns.”
Several other brokerages have also recently weighed in on UHS. Barclays PLC dropped their price objective on Universal Health Services from $150.00 to $147.00 and set an equal weight rating on the stock in a research note on Thursday, July 28th. Ladenburg Thalmann upgraded Universal Health Services from a not rated rating to an outperform rating in a research note on Monday, June 13th. JPMorgan Chase & Co. raised their price objective on Universal Health Services from $138.00 to $150.00 and gave the company an overweight rating in a research note on Friday, July 29th. Leerink Swann restated a buy rating and set a $150.00 price objective on shares of Universal Health Services in a research note on Friday, July 29th. Finally, Credit Suisse Group AG restated a hold rating and set a $130.00 price objective on shares of Universal Health Services in a research note on Tuesday, August 30th. Six analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. Universal Health Services presently has a consensus rating of Buy and an average target price of $143.25.
Shares of Universal Health Services (NYSE:UHS) opened at 121.28 on Tuesday. The company has a market cap of $11.81 billion, a price-to-earnings ratio of 17.27 and a beta of 1.20. Universal Health Services has a 12 month low of $100.82 and a 12 month high of $139.77. The stock has a 50 day moving average of $121.51 and a 200-day moving average of $128.65.
Universal Health Services (NYSE:UHS) last issued its quarterly earnings data on Tuesday, July 26th. The company reported $1.94 earnings per share for the quarter, meeting the consensus estimate of $1.94. Universal Health Services had a return on equity of 16.56% and a net margin of 7.43%. The business had revenue of $2.43 billion for the quarter, compared to analysts’ expectations of $2.47 billion. During the same period last year, the business earned $1.85 EPS. The business’s revenue was up 6.8% on a year-over-year basis. On average, analysts forecast that Universal Health Services will post $7.51 EPS for the current year.
The firm also recently declared a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Thursday, September 1st were issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.33%. The ex-dividend date of this dividend was Tuesday, August 30th. Universal Health Services’s payout ratio is currently 5.68%.
Several hedge funds and other institutional investors have recently made changes to their positions in UHS. Tower Research Capital LLC TRC acquired a new position in shares of Universal Health Services during the second quarter worth about $124,000. Checchi Capital Advisers LLC increased its position in Universal Health Services by 1.2% in the second quarter. Checchi Capital Advisers LLC now owns 1,030 shares of the company’s stock worth $138,000 after buying an additional 12 shares in the last quarter. Creative Planning increased its position in Universal Health Services by 5.2% in the second quarter. Creative Planning now owns 1,108 shares of the company’s stock worth $149,000 after buying an additional 55 shares in the last quarter. Mizuho Asset Management Co. Ltd. increased its position in Universal Health Services by 118.7% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,323 shares of the company’s stock worth $177,000 after buying an additional 718 shares in the last quarter. Finally, IFP Advisors Inc increased its position in Universal Health Services by 2.7% in the first quarter. IFP Advisors Inc now owns 1,498 shares of the company’s stock worth $187,000 after buying an additional 39 shares in the last quarter. 85.09% of the stock is currently owned by hedge funds and other institutional investors.
Universal Health Services Company Profile
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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