Short Interest in Universal Health Services, Inc. (NYSE:UHS) Expands By 25.0%

Universal Health Services, Inc. (NYSE:UHS) was the recipient of a significant increase in short interest in the month of September. As of September 15th, there was short interest totalling 1,550,000 shares, an increase of 25.0% from the August 31st total of 1,240,000 shares. Currently, 2.8% of the shares of the stock are sold short. Based on an average daily volume of 728,500 shares, the days-to-cover ratio is currently 2.1 days.

Analysts Set New Price Targets

Several equities research analysts have issued reports on UHS shares. Baird R W raised Universal Health Services from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, June 26th. Wells Fargo & Company increased their price target on shares of Universal Health Services from $200.00 to $255.00 and gave the company an “overweight” rating in a research report on Tuesday, July 30th. The Goldman Sachs Group boosted their price objective on shares of Universal Health Services from $200.00 to $229.00 and gave the stock a “buy” rating in a report on Tuesday, July 30th. Barclays raised shares of Universal Health Services from an “equal weight” rating to an “overweight” rating and boosted their price target for the stock from $198.00 to $256.00 in a research note on Friday, July 26th. Finally, Robert W. Baird raised their price objective on Universal Health Services from $236.00 to $274.00 and gave the company an “outperform” rating in a research note on Wednesday, September 4th. Five research analysts have rated the stock with a hold rating, eight have given a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $224.92.

Universal Health Services Stock Down 4.1 %

Shares of Universal Health Services stock traded down $9.75 during trading on Friday, hitting $229.92. The company’s stock had a trading volume of 1,381,373 shares, compared to its average volume of 648,646. The company has a market capitalization of $15.39 billion, a PE ratio of 19.48, a P/E/G ratio of 0.80 and a beta of 1.28. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.17 and a current ratio of 1.28. Universal Health Services has a 52 week low of $119.90 and a 52 week high of $243.25. The company has a fifty day simple moving average of $224.97 and a two-hundred day simple moving average of $194.42.

Universal Health Services (NYSE:UHS) last posted its quarterly earnings results on Wednesday, July 24th. The health services provider reported $4.31 earnings per share for the quarter, topping the consensus estimate of $3.37 by $0.94. Universal Health Services had a return on equity of 14.91% and a net margin of 6.22%. The company had revenue of $3.91 billion for the quarter, compared to the consensus estimate of $3.87 billion. During the same quarter in the prior year, the business posted $2.53 EPS. The firm’s quarterly revenue was up 10.1% compared to the same quarter last year. Equities research analysts predict that Universal Health Services will post 15.91 earnings per share for the current year.

Universal Health Services Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 17th. Investors of record on Tuesday, September 3rd were given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 0.35%. The ex-dividend date of this dividend was Tuesday, September 3rd. Universal Health Services’s dividend payout ratio (DPR) is 6.78%.

Universal Health Services declared that its Board of Directors has initiated a stock repurchase program on Wednesday, July 24th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the health services provider to reacquire up to 8% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its stock is undervalued.

Insider Transactions at Universal Health Services

In related news, Director Warren J. Nimetz sold 3,444 shares of Universal Health Services stock in a transaction on Monday, August 12th. The stock was 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 owns 3,971 shares of the company’s stock, valued at $864,248.44. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In other news, Director Nina Chen-Langenmayr sold 850 shares of the stock in a transaction on Wednesday, August 7th. The shares were sold at an average price of $212.11, for a total value of $180,293.50. Following the transaction, the director now owns 1,985 shares of the company’s stock, valued at approximately $421,038.35. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Warren J. Nimetz sold 3,444 shares of Universal Health Services stock in a transaction on Monday, August 12th. The stock was sold at an average price of $217.64, for a total transaction of $749,552.16. Following the sale, the director now directly owns 3,971 shares of the company’s stock, valued at $864,248.44. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 21,970 shares of company stock valued at $4,653,535. 16.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Universal Health Services

Institutional investors and hedge funds have recently made changes to their positions in the company. Van ECK Associates Corp increased its holdings in Universal Health Services by 4.2% in the 2nd quarter. Van ECK Associates Corp now owns 1,160 shares of the health services provider’s stock worth $215,000 after buying an additional 47 shares in the last quarter. LRI Investments LLC grew its stake in shares of Universal Health Services by 19.5% in the second quarter. LRI Investments LLC now owns 386 shares of the health services provider’s stock worth $71,000 after acquiring an additional 63 shares during the period. Janiczek Wealth Management LLC grew its stake in shares of Universal Health Services by 11.4% in the first quarter. Janiczek Wealth Management LLC now owns 624 shares of the health services provider’s stock worth $114,000 after acquiring an additional 64 shares during the period. Empirical Finance LLC raised its holdings in shares of Universal Health Services by 3.1% during the first quarter. Empirical Finance LLC now owns 2,455 shares of the health services provider’s stock valued at $448,000 after purchasing an additional 73 shares during the last quarter. Finally, O Neil Global Advisors Inc. lifted its position in Universal Health Services by 6.7% during the second quarter. O Neil Global Advisors Inc. now owns 1,175 shares of the health services provider’s stock valued at $217,000 after purchasing an additional 74 shares during the period. Institutional investors own 86.05% of the company’s stock.

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.