Universal Health Services, Inc. (NYSE:UHS) Short Interest Update

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

Wall Street Analyst Weigh In

Several brokerages recently commented on UHS. TD Cowen dropped their price target on Universal Health Services from $283.00 to $275.00 and set a “buy” rating for the company in a research report on Monday, October 28th. Robert W. Baird upped their target price on shares of Universal Health Services from $236.00 to $274.00 and gave the stock an “outperform” rating in a report on Wednesday, September 4th. Stephens reissued an “equal weight” rating and issued a $200.00 price target on shares of Universal Health Services in a research note on Thursday, July 25th. UBS Group upped their price objective on shares of Universal Health Services from $247.00 to $267.00 and gave the company a “buy” rating in a research note on Wednesday, August 14th. Finally, Royal Bank of Canada decreased their target price on shares of Universal Health Services from $222.00 to $211.00 and set a “sector perform” rating on the stock in a research note on Monday, October 28th. 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 stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $231.14.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Financial Management Professionals Inc. acquired a new stake in shares of Universal Health Services during the third quarter valued at about $32,000. Blue Trust Inc. increased its holdings in Universal Health Services by 1,284.6% in the 2nd quarter. Blue Trust Inc. now owns 180 shares of the health services provider’s stock valued at $33,000 after purchasing an additional 167 shares during the last quarter. Innealta Capital LLC purchased a new stake in Universal Health Services in the second quarter valued at approximately $35,000. Headlands Technologies LLC purchased a new stake in Universal Health Services in the first quarter valued at approximately $36,000. Finally, True Wealth Design LLC acquired a new position in Universal Health Services during the third quarter worth $39,000. Institutional investors and hedge funds own 86.05% of the company’s stock.

Universal Health Services Trading Up 0.3 %

Shares of UHS stock traded up $0.68 during trading on Friday, hitting $201.69. 763,805 shares of the stock traded hands, 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 firm has a market capitalization 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. The firm’s fifty day moving average price is $221.18 and its 200-day moving average price is $205.36. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.39 and a quick ratio of 1.28.

Universal Health Services (NYSE:UHS) last posted its earnings results on Thursday, October 24th. The health services provider reported $3.71 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.75 by ($0.04). Universal Health Services had a return on equity of 15.75% and a net margin of 6.66%. The business had revenue of $3.96 billion for the quarter, compared to analyst estimates of $3.90 billion. During the same period last year, the business earned $2.55 EPS. Universal Health Services’s revenue was up 11.3% compared to the same quarter last year. As a group, research analysts forecast that Universal Health Services will post 15.93 earnings per share for the current fiscal year.

Universal Health Services announced that its Board of Directors has initiated a stock repurchase plan 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 purchase up to 8% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management 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.