Reassessing The Changing Outlook For Universal Health Services Inc. (UHS)

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    BlackRock Fund Advisors recently announced the acquisition of new stake in Universal Health Services Inc. (NYSE:UHS). The institutional investor has increased its shareholding in the Healthcare company by 0.05% to 4.71 million shares with purchase of 2304.0 shares. This fresh investment now brings its stake to 6.07% valued currently at $437.81 million. In addition, Fidelity Management & Research Co… raised its holdings by 0.14 million to 3.85 million shares. And SSgA Funds Management, Inc. has lifted its position by 1.82% or 65731.0 shares – to 3.67 million shares.

    With over 0.66 million Universal Health Services Inc. (UHS) shares trading Friday and a closing price of $108.08 on the day, the dollar volume was approximately $70.87 million. The shares have shown a positive weekly performance of 10.74% and its price on 07/24/20 gained nearly 0.54%. Currently, there are 86.21M common shares owned by the public and among those 75.33M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 16 analysts who have offered their price forecasts for UHS have a consensus price objective of $127.73. The analysts have set the share’s price value over the next 12 months at a high of $145.00 and a low of $97.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Universal Health Services Inc. stock is 2.20 for the next 12 months. The average price target is 14.99% above its last price level and an upside to the estimated low will see the stock lose -11.42% over that period. But an upside of 25.46% will see the stock hit the forecast high price target while mean target price for the stock is $130.00.

    Insiders at the company have transacted a total of 51 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 21 of these insider trades were purchases, accounting for 1,042,274 shares. Insider sales of the common stock occurred on 30 occasions, with total insider shares sold totaling 1,057,320 shares.

    The top 3 mutual fund holders in Universal Health Services Inc. are Vanguard Health Care Fund, First Eagle Global Fund, and Vanguard Total Stock Market Index. Vanguard Health Care Fund owns 3.56 million shares of the company’s stock, all valued at over $331.07 million. The company bought an additional 0.21 million shares recently to bring their total holdings to about 4.59% of the shares outstanding. Vanguard Total Stock Market Index sold -0.1 million shares to bring its total holdings to over 2.1 million shares at a value of $195.35 million. Vanguard Total Stock Market Index now owns shares totaling to 2.71% of the shares outstanding.

    Shares of Universal Health Services Inc. (NYSE: UHS) opened at $108.21, up $0.71 from a prior closing price of $107.50. However, the script later closed the day at $108.08, up 0.54%. The company’s stock has a 5-day price change of 10.74% and 6.33% over the past three months. UHS shares are trading -24.66% year to date (YTD), with the 12-month market performance down to -21.09% lower. It has a 12-month low price of $65.20 and touched a high of $157.79 over the same period. Currently, 0.66 million shares have been traded, compared to an average intraday trading volume of 751.41K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 14.17%, 9.71%, and -10.20% respectively.

    Institutional ownership of Universal Health Services Inc. (NYSE: UHS) shares accounts for 97.00% of the company’s 86.21M shares outstanding. Mutual fund holders own 4.22%, while other institutional holders and individual stakeholders account for 62.03% and 33.96% respectively.

    It has a market capitalization of $9.25B and a beta (3y monthly) value of 1.06. The stock’s trailing 12-month PE ratio is 13.19, while the earnings-per-share (ttm) stands at $8.19. The company has a PEG of 1.16 and a Quick Ratio of 1.00 with the debt-to-equity ratio at 0.70. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.40% over the week and 3.96% over the month.

    Analysts forecast that Universal Health Services Inc. (UHS) will achieve an EPS of $0.73 for the current quarter, $1.4 for the next quarter and $10.27 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.32 while analysts give the company a high EPS estimate of $1.77. Comparatively, EPS for the current quarter was $2.76 a year ago. Earnings per share for the fiscal year are expected to increase by 10.80%, and 55.94% over the next financial year. EPS should grow at an annualized rate of 11.36% over the next five years, compared to 11.00% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 16 brokerage firm advisors rate Universal Health Services Inc. (UHS) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 7 of the 16 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the UHS, a number of firms have released research notes about the stock. Barclays stated their Overweight rating for the stock in a research note on June 09, 2020, with the firm’s price target at $138. BofA/Merrill coverage for the Universal Health Services Inc. (UHS) stock in a research note released on March 23, 2020 offered a Neutral rating with a price target of $104. BofA/Merrill was of a view on July 26, 2019 that the stock is Buy, while JP Morgan gave the stock Neutral rating on March 04, 2019, issuing a price target of $147. Stephens on their part issued Equal-Weight rating on January 14, 2019.

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