Zacks Investment Research Upgrades Universal Health Services, Inc. (UHS) to “Buy”
Universal Health Services, Inc. (NYSE:UHS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday, July 4th. The brokerage presently has a $137.00 target price on the health services provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 26.75% from the company’s current price.
According to Zacks, “Universal Health’s robust inorganic growth has substantially contributed to strong revenue generation. Moreover, the U.S healthcare industry offers immense untapped opportunities given the rising numbers of baby boomers. Also, solid Acute-care Platform continues to perform well. The Zacks Consensus Estimate is pegged at $2.07 for the to-be-reported quarter, reflecting 6.7% year over year growth. However, year to date, the company’s shares have gained 15%, underperforming the 18% increase of the Zacks categorized Hospital industry. Universal Health remains exposed to integration risks owing to several acquisitions. Further, the company’s highly leveraged balance sheet a major headwind. The company is also expected witness margin contraction at both acute care and behavioral hospitals.”
UHS has been the subject of a number of other research reports. Royal Bank Of Canada cut their target price on shares of Universal Health Services from $157.00 to $153.00 and set an “outperform” rating for the company in a research note on Thursday, April 27th. Morgan Stanley assumed coverage on shares of Universal Health Services in a research report on Tuesday, June 6th. They issued an “equal weight” rating and a $124.00 price objective for the company. Piper Jaffray Companies upgraded shares of Universal Health Services from a “neutral” rating to an “overweight” rating and boosted their price objective for the stock from $119.00 to $147.00 in a research report on Monday, March 6th. BidaskClub raised shares of Universal Health Services from a “strong sell” rating to a “sell” rating in a report on Thursday, June 29th. Finally, Mizuho raised shares of Universal Health Services from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $133.00 to $138.00 in a report on Monday, March 27th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and five have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $136.90.
Shares of Universal Health Services (UHS) traded down 0.27% during mid-day trading on Tuesday, reaching $108.09. The company’s stock had a trading volume of 575,618 shares. Universal Health Services has a 12 month low of $99.72 and a 12 month high of $129.74. The company has a 50 day moving average price of $118.85 and a 200 day moving average price of $119.40. The stock has a market capitalization of $10.40 billion, a P/E ratio of 14.70 and a beta of 1.06.
Universal Health Services (NYSE:UHS) last posted its earnings results on Tuesday, July 25th. The health services provider reported $1.94 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.06 by $0.12. Universal Health Services had a net margin of 7.10% and a return on equity of 15.49%. The firm had revenue of $2.61 billion during the quarter, compared to the consensus estimate of $2.64 billion. During the same quarter last year, the firm posted $1.94 EPS. The business’s revenue was up 7.5% on a year-over-year basis. On average, equities research analysts anticipate that Universal Health Services will post $7.72 earnings per share for the current fiscal year.
A number of large investors have recently modified their holdings of UHS. Kentucky Retirement Systems Insurance Trust Fund acquired a new stake in shares of Universal Health Services during the fourth quarter valued at approximately $309,000. Kentucky Retirement Systems purchased a new stake in shares of Universal Health Services during the fourth quarter worth about $692,000. UBS Asset Management Americas Inc. raised its position in shares of Universal Health Services by 2.9% in the fourth quarter. UBS Asset Management Americas Inc. now owns 211,798 shares of the health services provider’s stock worth $22,530,000 after buying an additional 6,052 shares during the period. Migdal Insurance & Financial Holdings Ltd. bought a new position in shares of Universal Health Services during the fourth quarter worth approximately $364,000. Finally, Westport Asset Management Inc. bought a new position in shares of Universal Health Services during the fourth quarter worth approximately $11,099,000. 85.98% 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’s principal business is owning and operating, through its subsidiaries, acute care hospitals and outpatient facilities, and behavioral healthcare facilities. The Company’s segments include Acute Care Hospital Services, Behavioral Health Services and Other.
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