Zacks Research Has Optimistic Outlook of UHS FY2025 Earnings

by · The Cerbat Gem

Universal Health Services, Inc. (NYSE:UHS – Free Report) – Equities researchers at Zacks Research boosted their FY2025 earnings per share estimates for shares of Universal Health Services in a research note issued to investors on Monday, November 18th. Zacks Research analyst R. Department now expects that the health services provider will post earnings of $15.75 per share for the year, up from their previous estimate of $15.72. The consensus estimate for Universal Health Services’ current full-year earnings is $15.93 per share.

A number of other research analysts have also recently issued reports on UHS. Wells Fargo & Company lifted their price target on shares of Universal Health Services from $275.00 to $285.00 and gave the company an “overweight” rating in a research report on Wednesday, November 6th. Stephens reiterated an “equal weight” rating and set a $200.00 target price on shares of Universal Health Services in a report on Thursday, July 25th. Royal Bank of Canada dropped their price target on Universal Health Services from $222.00 to $211.00 and set a “sector perform” rating on the stock in a research report on Monday, October 28th. UBS Group raised their price objective on Universal Health Services from $247.00 to $267.00 and gave the company a “buy” rating in a research report on Wednesday, August 14th. Finally, KeyCorp started coverage on Universal Health Services in a report on Friday, October 11th. They issued a “sector weight” rating on the stock. Six investment analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, Universal Health Services has an average rating of “Moderate Buy” and a consensus target price of $231.14.

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Universal Health Services Stock Performance

Shares of Universal Health Services stock opened at $197.44 on Thursday. Universal Health Services has a 12 month low of $133.70 and a 12 month high of $243.25. The firm has a market capitalization of $13.03 billion, a P/E ratio of 13.13, a P/E/G ratio of 0.63 and a beta of 1.29. The company has a current ratio of 1.39, a quick ratio of 1.28 and a debt-to-equity ratio of 0.69. The business has a fifty day simple moving average of $219.39 and a two-hundred day simple moving average of $205.95.

Universal Health Services (NYSE:UHS – Get Free Report) last released its earnings results on Thursday, October 24th. The health services provider reported $3.71 EPS for the quarter, missing analysts’ consensus estimates of $3.75 by ($0.04). The firm had revenue of $3.96 billion during the quarter, compared to analysts’ expectations of $3.90 billion. Universal Health Services had a net margin of 6.66% and a return on equity of 15.75%. The company’s revenue for the quarter was up 11.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.55 EPS.

Universal Health Services Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 17th. Investors of record on Tuesday, December 3rd will be issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 0.41%. Universal Health Services’s dividend payout ratio is currently 5.32%.

Universal Health Services declared that its board has authorized a stock buyback plan on Wednesday, July 24th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the health services provider to repurchase up to 8% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Universal Health Services

A number of hedge funds have recently added to or reduced their stakes in UHS. Bessemer Group Inc. grew its holdings in shares of Universal Health Services by 5,033.3% in the first quarter. Bessemer Group Inc. now owns 7,084 shares of the health services provider’s stock worth $1,292,000 after acquiring an additional 6,946 shares during the period. UniSuper Management Pty Ltd increased its position in shares of Universal Health Services by 501.5% during the 1st quarter. UniSuper Management Pty Ltd now owns 5,919 shares of the health services provider’s stock valued at $1,080,000 after purchasing an additional 4,935 shares during the last quarter. Cetera Advisors LLC bought a new position in shares of Universal Health Services in the 1st quarter worth approximately $642,000. NBC Securities Inc. boosted its holdings in shares of Universal Health Services by 403.2% in the second quarter. NBC Securities Inc. now owns 7,321 shares of the health services provider’s stock worth $1,353,000 after buying an additional 5,866 shares during the last quarter. Finally, Cetera Investment Advisers grew its position in Universal Health Services by 134.2% during the first quarter. Cetera Investment Advisers now owns 8,744 shares of the health services provider’s stock valued at $1,595,000 after buying an additional 5,010 shares during the period. 86.05% of the stock is currently owned by hedge funds and other institutional investors.

About Universal Health Services

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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.

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