Universal Health Services (NYSE:UHS) Share Price Breaks Below 200-Day Moving Average – Time to Sell?

Shares of Universal Health Services, Inc. (NYSE:UHS) crossed below its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $177.81 and traded as low as $173.83. Universal Health Services shares last traded at $177.3230, with a volume of 1,239,749 shares changing hands.

Key Headlines Impacting Universal Health Services

Here are the key news stories impacting Universal Health Services this week:

• Positive Sentiment: UHS reported third-quarter revenue growth of 5.3%, supported by higher patient volumes. The company generated $308.7 million in net income, while management’s results broadly highlighted continued demand across its healthcare operations. Universal Health Services Q3 Profit Falls Despite 5.3% Revenue Growth; Stock Down
• Positive Sentiment: The stock’s low valuation may be supporting investor interest. UHS trades at roughly 7.6 times earnings, and its quarterly revenue was above the prior-year period despite a challenging operating environment.
• Neutral Sentiment: Analysts focused on whether stronger patient volumes can translate into improved margins. Procedures are increasingly moving from hospitals to ambulatory surgery centers and physician offices, pressuring UHS’s hospital-based surgical volumes. UHS surgical volumes dip as procedures migrate to ASCs, physician offices
• Negative Sentiment: Third-quarter earnings declined 8.3% and missed expectations despite revenue growth. Rising labor and operating costs, weaker pricing—particularly in acute care—and lower profitability offset the benefit from higher patient volumes. UHS Misses Q3 Earnings Estimates Despite Higher Patient Volumes
• Negative Sentiment: Robert W. Baird cut its UHS price target from $166 to $156 and maintained a neutral rating, signaling limited confidence in near-term upside. Robert W. Baird stock recommendations
• Negative Sentiment: UHS reached a tentative settlement in patient-abuse lawsuits, potentially reducing litigation uncertainty but also creating an expected financial and reputational burden. Investors are also monitoring possible Medicaid funding and reimbursement risks. UHS reaches tentative settlement in patient abuse lawsuits

Analyst Upgrades and Downgrades

Several brokerages recently commented on UHS. Guggenheim cut their price objective on Universal Health Services from $209.00 to $201.00 and set a “buy” rating for the company in a report on Thursday. UBS Group restated a “buy” rating on shares of Universal Health Services in a research note on Monday, August 31st. Leerink Partners increased their price objective on shares of Universal Health Services from $198.00 to $205.00 and gave the company an “outperform” rating in a report on Friday, September 18th. Raymond James Financial reaffirmed a “market perform” rating on shares of Universal Health Services in a report on Thursday. Finally, Wells Fargo & Company lifted their price objective on Universal Health Services from $165.00 to $166.00 and gave the stock an “equal weight” rating in a research note on Monday, July 13th. Six investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $205.06.

Universal Health Services Trading Up 2.5%

The company has a market capitalization of $10.40 billion, a PE ratio of 7.38, a price-to-earnings-growth ratio of 1.08 and a beta of 1.03. The company’s fifty day moving average is $177.29 and its 200-day moving average is $177.47. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.37 and a quick ratio of 1.04.

Universal Health Services (NYSE:UHS) last posted its earnings results on Tuesday, October 27th. The health services provider reported $5.22 earnings per share for the quarter, topping analysts’ consensus estimates of $5.19 by $0.03. Universal Health Services had a return on equity of 18.39% and a net margin of 7.96%. The company had revenue of $4.73 billion during the quarter, compared to analyst estimates of $4.71 billion. During the same quarter in the prior year, the business earned $5.69 earnings per share. Universal Health Services’s revenue was up 5.3% on a year-over-year basis. On average, analysts anticipate that Universal Health Services, Inc. will post 22.83 EPS for the current fiscal year.

Institutional Investors Weigh In On Universal Health Services

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Kestra Private Wealth Services LLC grew its holdings in Universal Health Services by 5.4% in the first quarter. Kestra Private Wealth Services LLC now owns 1,361 shares of the health services provider’s stock worth $244,000 after purchasing an additional 70 shares during the last quarter. Mufg Securities Americas Inc. lifted its holdings in shares of Universal Health Services by 5.0% during the 2nd quarter. Mufg Securities Americas Inc. now owns 1,605 shares of the health services provider’s stock valued at $239,000 after purchasing an additional 77 shares during the last quarter. Vise Technologies Inc. lifted its holdings in shares of Universal Health Services by 3.0% during the 3rd quarter. Vise Technologies Inc. now owns 2,998 shares of the health services provider’s stock valued at $522,000 after purchasing an additional 87 shares during the last quarter. Kesler Norman & Wride LLC lifted its holdings in shares of Universal Health Services by 1.8% during the 1st quarter. Kesler Norman & Wride LLC now owns 5,144 shares of the health services provider’s stock valued at $921,000 after purchasing an additional 93 shares during the last quarter. Finally, Handelsbanken Fonder AB grew its stake in Universal Health Services by 0.7% during the 2nd quarter. Handelsbanken Fonder AB now owns 14,900 shares of the health services provider’s stock worth $2,215,000 after buying an additional 100 shares during the last quarter. Hedge funds and other institutional investors own 86.05% of the company’s stock.

Universal Health Services Company Profile

Universal Health Services, Inc (NYSE: UHS) is a healthcare services company that owns and operates hospitals, outpatient facilities and other healthcare providers. Its operations are focused primarily on acute care and behavioral health services.

The company’s acute care operations include general and specialty hospitals, ambulatory surgery centers, emergency departments, physician practices and other outpatient services. Its behavioral health business provides inpatient and outpatient treatment for mental health conditions, substance-use disorders and related needs.

Universal Health Services serves patients across the United States and Puerto Rico, with additional behavioral health operations in the United Kingdom.