Universal Health Services, Inc. (NYSE:UHS) Sees Significant Drop in Short Interest

Universal Health Services, Inc. (NYSE:UHS) saw a significant decrease in short interest in the month of October. As of October 31st, there was short interest totalling 1,230,000 shares, a decrease of 19.6% from the October 15th total of 1,530,000 shares. Based on an average daily trading volume, of 723,000 shares, the short-interest ratio is currently 1.7 days. Currently, 2.2% of the company’s stock are short sold.

Hedge Funds Weigh In On Universal Health Services

Several large investors have recently made changes to their positions in UHS. Point72 Asset Management L.P. increased its holdings 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 buying an additional 252,846 shares in the last quarter. Marshall Wace LLP increased its stake in shares of Universal Health Services by 357.9% in the 2nd 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 in the last quarter. Lazard Asset Management LLC raised its holdings in Universal Health Services by 1,191.8% in the 1st quarter. Lazard Asset Management LLC now owns 215,215 shares of the health services provider’s stock worth $39,267,000 after purchasing an additional 198,555 shares during the period. Lord Abbett & CO. LLC purchased a new position in Universal Health Services during the first quarter worth approximately $25,032,000. Finally, Goldentree Asset Management LP acquired a new stake in Universal Health Services in the first quarter valued at approximately $21,378,000. 86.05% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

UHS has been the topic of a number of recent research reports. StockNews.com downgraded Universal Health Services from a “strong-buy” rating to a “buy” rating in a research report on Saturday, November 9th. TD Cowen cut their price objective on shares of Universal Health Services from $283.00 to $275.00 and set a “buy” rating on the stock in a research report on Monday, October 28th. Robert W. Baird increased their target price on shares of Universal Health Services from $236.00 to $274.00 and gave the company an “outperform” rating in a research report on Wednesday, September 4th. Barclays lifted their price target on shares of Universal Health Services from $256.00 to $271.00 and gave the stock an “overweight” rating in a report on Friday, October 25th. Finally, The Goldman Sachs Group increased their price objective on Universal Health Services from $200.00 to $229.00 and gave the company a “buy” rating in a report on Tuesday, July 30th. Six equities research analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, Universal Health Services presently has an average rating of “Moderate Buy” and a consensus price target of $231.14.

Universal Health Services Stock Performance

NYSE UHS traded up $0.68 during trading hours on Friday, reaching $201.69. The stock had a trading volume of 763,805 shares, compared to its average volume of 680,765. Universal Health Services has a 52-week low of $132.74 and a 52-week high of $243.25. The stock has a fifty day moving average of $221.18 and a 200 day moving average of $205.36. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.28 and a current ratio of 1.39. The stock has a market cap of $13.45 billion, a P/E ratio of 13.41, a price-to-earnings-growth ratio of 0.65 and a beta of 1.29.

Universal Health Services (NYSE:UHS) last released its quarterly earnings data on Thursday, October 24th. The health services provider reported $3.71 EPS for the quarter, missing the consensus estimate of $3.75 by ($0.04). The business had revenue of $3.96 billion during the quarter, compared to analysts’ expectations 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 period last year, the company earned $2.55 earnings per share. Sell-side analysts predict that Universal Health Services will post 15.93 earnings per share for the current year.

Universal Health Services announced that its Board of Directors has approved a share repurchase program on Wednesday, July 24th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the health services provider to buy up to 8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s leadership believes its shares are undervalued.

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.