Universal Health Services, Inc. (UHS) Stock Next Stop, $115.29?

Universal Health Services, Inc. (NYSE:UHS) sank as low as $114.44 Friday before getting settled at $114.74. The 0.18 percent increase called for market cap to move at $10.77B. The price went up as high as $114.44 before retreating. Trading activity significantly weakened as the volume at ready counter decreased to 649,909 shares versus 742,325 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 838,128 shares. The stock is now 20.45% above against its bear-market low of $95.26 on November 15, 2017. It has retreated -11.69% since it’s 52-week high of $128.15 reached in March. Now the market price is down -6.77% on the year and up 1.23% YTD.

UHS’s 50 day simple moving average (SMA 50) price is $115.63 and its 200-day simple moving average (SMA 200) price is $114.12. The company’s stock currently has a total float of 84.99M shares. Its weekly volatility is hovering around 1.34% and felt 1.28% volatility in price over a month. On the upside, the share price will test short term resistance at around $115.29. On a downside, the stock is likely to find some support, which begins at $114.31. The failure to get near-term support could push it to $113.89.

The insider holding in Universal Health Services, Inc. (UHS) stood at 1.3% while institutions hold 95.3%. Wellington Management Group Llp is the largest single holder among mutual funds with ownership of over 7.39M UHS shares as of March 31, with a market value of approx. $874.93M as of today. The second largest holder, Vanguard Health Care Fund, with 4.64M shares which equates to $549.97M worth of the stock. At third is Larry Robbins, which stood pat with 4.07M shares, a 4.46% position in Universal Health Services, Inc., worth $482.01M.

Separately, it has been reported that multiple insider activity took place at Universal Health Services, Inc. (UHS). Senior Vice President & CFO Filton Steve sold 10,000 shares for $257,492 in transaction occurred on 2017/03/08. After making this transaction, the Senior Vice President & CFO owns a direct stake of 1,238,000 shares, worth $29,544,632, as per the last closing price. On 2016/06/09 Osteen Debra K, Senior Vice President at UHS, dumped 6,756 shares at an average price of $138.27 per share. The selling total is valued at $10,035,275.

Senior Vice President, Pember Marvin G. had divested 16,105 shares for $10,068 through a trade on 2016/06/03. Following this activity, the insider holds 2,185,449 shares worth $1,155,202 as of recent close.Wall Street’s most bullish Universal Health Services, Inc. (NYSE:UHS) analysts are predicting the share price to blow past $142 per share during the next 12 months. The current median share price forecast by them is $134, suggesting that the stock could increase 16.79% in that time frame. The average price target of $131.19 calls for a nearly 14.34% increase in the stock price.

It had seen a new analyst call from Wells Fargo, which initiated the stock at Outperform on January 30. Analysts at Goldman, started covering the stock on January 03 with a Buy rating. The stock lost favor of Piper Jaffray analysts who expressed their lack of confidence in it using a downgrade from Overweight to Neutral on January 03.

When looking at valuations, Universal Health Services, Inc. (UHS) has a cheap P/E of 14.82x as compared to industry average of 30.47x. Moreover, it trades for 11.15 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 2.07x price/book and 1.03x price/sales.Compared to others, Universal Health Services, Inc. is in a different league with regards to profitability, having net margins of 7.3%. To put some perspective around this, the industry’s average net margin is 5.28%. UHS’s ROE is 15.5%, which is also considerably better than the industry’s ROE of 10.86%. It’s also very liquid in the near term, with a current ratio of 1.2. The stock has a debt/capital of 0.75.

Shares of Universal Health Services, Inc. (UHS) have dropped -6.2% since the company’s Sep-18 earnings report. Over the past 12 fiscal quarters, Universal Health Services, Inc. (NYSE:UHS) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 6 quarters (50%), whereas at 1 occasion EPS met analyst expectations. UHS last reported earnings on April 25, 2018 when it released Mar-18 results that receded expectations. The company raked in $2.45 per share, -53.24% change on the same period last year. That was worse than consensus for $2.59. Revenue for the recent quarter stood at $2.69 billion, up 3% on last year and below the $2.75 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.6 billion to $2.75 billion, which should be compared with $2.8 billion generated last year. EPS is seen in a range of $1.87 to $2.27, against the $2.01 reported a year ago.