Bank of America Initiates Coverage on Universal Health Services (NYSE:UHS)

Analysts at Bank of America started coverage on shares of Universal Health Services (NYSE:UHS - Get Free Report) in a note issued to investors on Wednesday, StockNewsAPI reports. The brokerage set a "neutral" rating and a $223.00 price target on the health services provider's stock. Bank of America's price target indicates a potential upside of 9.57% from the company's previous close.

Several other analysts also recently weighed in on the stock. Stephens reiterated an "equal weight" rating and issued a $200.00 target price on shares of Universal Health Services in a report on Thursday, July 25th. TD Cowen dropped their target price on shares of Universal Health Services from $283.00 to $275.00 and set a "buy" rating for the company in a report on Monday, October 28th. Barclays lifted their target price on shares of Universal Health Services from $256.00 to $271.00 and gave the company an "overweight" rating in a report on Friday, October 25th. Cantor Fitzgerald reiterated a "neutral" rating and issued a $219.00 target price on shares of Universal Health Services in a report on Friday, October 25th. Finally, StockNews.com downgraded shares of Universal Health Services from a "strong-buy" rating to a "buy" rating in a report on Thursday, October 31st. Six research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, Universal Health Services presently has a consensus rating of "Moderate Buy" and a consensus price target of $231.14.

Universal Health Services Price Performance

UHS stock traded down $8.65 during mid-day trading on Wednesday, reaching $203.52. The company's stock had a trading volume of 1,442,567 shares, compared to its average volume of 680,842. The stock has a market cap of $13.58 billion, a PE ratio of 13.53, a P/E/G ratio of 0.67 and a beta of 1.29. The company has a current ratio of 1.39, a quick ratio of 1.28 and a debt-to-equity ratio of 0.69. Universal Health Services has a fifty-two week low of $127.43 and a fifty-two week high of $243.25. The company's 50 day moving average is $226.24 and its two-hundred day moving average is $203.45.

Universal Health Services (NYSE:UHS - Get Free Report) last released its quarterly earnings data on Thursday, October 24th. The health services provider reported $3.71 EPS for the quarter, missing analysts' consensus estimates of $3.75 by ($0.04). The business had revenue of $3.96 billion during the quarter, compared to analyst estimates of $3.90 billion. Universal Health Services had a net margin of 6.66% and a return on equity of 15.75%. The firm's revenue was up 11.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.55 EPS. Equities research analysts expect that Universal Health Services will post 15.89 EPS for the current year.

Universal Health Services announced that its board has initiated a stock 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 repurchase up to 8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's management believes its shares are undervalued.

Insider Transactions at Universal Health Services

In other news, Director Warren J. Nimetz sold 3,444 shares of Universal Health Services stock in a transaction on Monday, August 12th. The shares were sold at an average price of $217.64, for a total transaction of $749,552.16. Following the completion of the sale, the director now directly owns 3,971 shares of the company's stock, valued at approximately $864,248.44. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 16.10% of the company's stock.

Institutional Investors Weigh In On Universal Health Services

Institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. increased its stake in Universal Health Services by 0.8% in the first quarter. Vanguard Group Inc. now owns 7,099,282 shares of the health services provider's stock valued at $1,295,335,000 after purchasing an additional 57,036 shares during the period. Bank of New York Mellon Corp increased its stake in Universal Health Services by 0.5% in the second quarter. Bank of New York Mellon Corp now owns 486,438 shares of the health services provider's stock valued at $89,957,000 after purchasing an additional 2,620 shares during the period. Point72 Asset Management L.P. increased its stake in Universal Health Services by 362.3% in the second quarter. Point72 Asset Management L.P. now owns 322,626 shares of the health services provider's stock valued at $59,663,000 after purchasing an additional 252,846 shares during the period. Marshall Wace LLP increased its stake in Universal Health Services by 357.9% in the second 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 period. Finally, Lazard Asset Management LLC increased its stake in Universal Health Services by 1,191.8% in the first 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 period. 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.