Universal Health Services (NYSE:UHS) Shares Gap Up Following Earnings Beat

Shares of Universal Health Services, Inc. (NYSE:UHS - Get Free Report) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $180.12, but opened at $190.09. Universal Health Services shares last traded at $193.02, with a volume of 296,575 shares changing hands.

The health services provider reported $4.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.21 by $0.71. Universal Health Services had a net margin of 6.66% and a return on equity of 15.75%. The company had revenue of $4.11 billion during the quarter, compared to analyst estimates of $4.01 billion.

Universal Health Services Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 17th. Stockholders of record on Monday, March 3rd will be issued a $0.20 dividend. The ex-dividend date is Monday, March 3rd. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.46%. Universal Health Services's dividend payout ratio (DPR) is 4.75%.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on UHS shares. Cantor Fitzgerald raised Universal Health Services from a "neutral" rating to an "overweight" rating in a research report on Monday, February 3rd. Stephens boosted their price target on shares of Universal Health Services from $210.00 to $223.00 and gave the stock an "equal weight" rating in a research report on Friday. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $226.00 target price on shares of Universal Health Services in a research report on Tuesday, December 17th. The Goldman Sachs Group lowered Universal Health Services from a "buy" rating to a "neutral" rating and lowered their price target for the stock from $228.00 to $198.00 in a research report on Monday, December 16th. Finally, StockNews.com cut shares of Universal Health Services from a "strong-buy" rating to a "buy" rating in a research note on Saturday, November 9th. Six analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $228.77.

Insider Buying and Selling

In other news, Director Maria Ruderman Singer sold 1,614 shares of the company's stock in a transaction that occurred on Wednesday, December 11th. The stock was sold at an average price of $191.15, for a total value of $308,516.10. Following the completion of the transaction, the director now owns 5,879 shares of the company's stock, valued at $1,123,770.85. This represents a 21.54 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 16.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Universal Health Services

A number of institutional investors have recently made changes to their positions in UHS. First Eagle Investment Management LLC boosted its position in Universal Health Services by 1.0% during the fourth quarter. First Eagle Investment Management LLC now owns 4,675,182 shares of the health services provider's stock valued at $838,821,000 after acquiring an additional 44,099 shares during the last quarter. State Street Corp grew its position in shares of Universal Health Services by 0.6% during the 3rd quarter. State Street Corp now owns 2,724,075 shares of the health services provider's stock worth $623,840,000 after buying an additional 17,527 shares during the period. Geode Capital Management LLC boosted its position in shares of Universal Health Services by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 1,713,572 shares of the health services provider's stock worth $306,776,000 after purchasing an additional 52,042 shares in the last quarter. Invesco Ltd. grew its stake in Universal Health Services by 25.6% in the fourth quarter. Invesco Ltd. now owns 1,241,340 shares of the health services provider's stock valued at $222,721,000 after acquiring an additional 253,385 shares during the period. Finally, JPMorgan Chase & Co. raised its holdings in Universal Health Services by 0.9% during the third quarter. JPMorgan Chase & Co. now owns 1,197,537 shares of the health services provider's stock worth $274,248,000 after buying an additional 10,578 shares during the last quarter. Institutional investors own 86.05% of the company's stock.

Universal Health Services Stock Performance

The firm has a market cap of $11.58 billion, a P/E ratio of 11.67, a PEG ratio of 0.53 and a beta of 1.30. 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 company's 50-day moving average is $184.47 and its two-hundred day moving average is $204.80.

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.