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

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

Universal Health Services Stock Performance

NYSE:UHS traded down $7.20 during mid-day trading on Monday, reaching $222.72. The stock had a trading volume of 866,426 shares, compared to its average volume of 649,331. Universal Health Services has a twelve month low of $119.90 and a twelve month high of $243.25. The business has a 50 day simple moving average of $224.97 and a 200 day simple moving average of $194.70. The firm has a market capitalization of $14.91 billion, a price-to-earnings ratio of 19.48, a PEG 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 (NYSE:UHS) last posted its quarterly earnings results on Wednesday, July 24th. The health services provider reported $4.31 EPS for the quarter, beating 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 business had revenue of $3.91 billion during the quarter, compared to analysts’ expectations of $3.87 billion. During the same period last year, the firm earned $2.53 EPS. The company’s quarterly revenue was up 10.1% compared to the same quarter last year. On average, analysts expect that Universal Health Services will post 15.91 earnings per share for the current fiscal year.

Universal Health Services Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 17th. Stockholders of record on Tuesday, September 3rd were paid a dividend of $0.20 per share. The ex-dividend date was Tuesday, September 3rd. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.36%. Universal Health Services’s dividend payout ratio (DPR) is presently 6.78%.

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

Insider Activity at Universal Health Services

In other news, Director Eileen C. Mcdonnell sold 2,535 shares of the firm’s stock in a transaction that occurred on Friday, July 26th. The shares were sold at an average price of $209.55, for a total value of $531,209.25. Following the completion of the transaction, the director now owns 6,413 shares of the company’s stock, valued at $1,343,844.15. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. In other news, Director Eileen C. Mcdonnell sold 2,535 shares of Universal Health Services stock in a transaction dated Friday, July 26th. The stock was sold at an average price of $209.55, for a total value of $531,209.25. Following the completion of the transaction, the director now owns 6,413 shares in the company, valued at approximately $1,343,844.15. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Warren J. Nimetz sold 3,444 shares of Universal Health Services stock in a transaction that occurred 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 transaction, the director now owns 3,971 shares of the company’s stock, valued at approximately $864,248.44. The disclosure for this sale can be found here. Insiders sold 21,970 shares of company stock worth $4,653,535 in the last three months. 16.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Benjamin F. Edwards & Company Inc. acquired a new position in shares of Universal Health Services in the first quarter worth $32,000. Blue Trust Inc. increased its stake in shares of Universal Health Services by 1,284.6% during the 2nd quarter. Blue Trust Inc. now owns 180 shares of the health services provider’s stock valued at $33,000 after acquiring an additional 167 shares during the last quarter. Innealta Capital LLC acquired a new stake in shares of Universal Health Services in the second quarter worth approximately $35,000. Headlands Technologies LLC purchased a new stake in Universal Health Services in the first quarter valued at approximately $36,000. Finally, Mather Group LLC. purchased a new stake in Universal Health Services in the first quarter valued at approximately $36,000. Institutional investors and hedge funds own 86.05% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on UHS shares. Cantor Fitzgerald reissued a “neutral” rating and issued a $219.00 price target on shares of Universal Health Services in a research report on Monday, August 19th. Stephens reissued an “equal weight” rating and issued a $200.00 target price on shares of Universal Health Services in a research report on Thursday, July 25th. Robert W. Baird raised their price target on Universal Health Services from $236.00 to $274.00 and gave the stock an “outperform” rating in a research note on Wednesday, September 4th. Royal Bank of Canada boosted their price objective on Universal Health Services from $189.00 to $222.00 and gave the company a “sector perform” rating in a research note on Monday, September 9th. Finally, Barclays raised shares of Universal Health Services from an “equal weight” rating to an “overweight” rating and lifted their target price for the company from $198.00 to $256.00 in a report on Friday, July 26th. Five equities research analysts have rated the stock with a hold rating, eight have issued a buy rating and two have issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $224.92.

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.