Universal Health Services, Inc. (UHS) Shock: Unpacking Today’s Price Drop

Cantor Fitzgerald has recently raised Universal Health Services, Inc. (UHS) stock to Neutral rating, as announced on July 26, 2024, according to Finviz. Earlier, on July 26, 2024, Barclays had raised the stock from a Equal Weight to Overweight, setting a price target of $256. Robert W. Baird also raised Outperform rating with a price target of $236. Additionally, Robert W. Baird initiated Neutral rating on May 30, 2024, with a target price of $198. UBS analysts, in their report published on May 20, 2024, also raised Buy rating and set a price target of $226 for Universal Health Services, Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.


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Universal Health Services, Inc. (UHS) Stock Trading Recap

On Tuesday, Universal Health Services, Inc. (UHS) stock saw a decline, ending the day at $224.66 which represents a decrease of $-4.35 or -1.90% from the prior close of $229.01. The stock opened at $228.59 and touched a low of $222.34 during the day, reaching a high of $228.81. The volume of shares traded was 0.82 million exceeding the average volume of 0.74 million.

UHS Stock Performance and Moving Averages

In recent trading, Universal Health Services, Inc. (UHS) stock price has shown some volatility, fluctuating -6.98% over the last five trades and -5.59% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 30.30%, and it has gained 21.62% in the previous three months. Currently, UHS is trading at -4.18%, -0.06%, and 22.00% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, UHS, a Healthcare sector stock, is trading -7.64% below its 52-week high but remains 87.37% above its 52-week low. The Average True Range (ATR) (14 days) of 6.44 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

Universal Health Services, Inc.’s Profitability and Valuation Ratios

Universal Health Services, Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 9.60% and a profit margin of 6.22%, with a gross margin of 30.30%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, Universal Health Services, Inc.’s market capitalization stands at $14.99 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 16.48, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 12.58. Additionally, the Price-to-Sales Ratio is 1, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 2.31, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 15.47% of Universal Health Services, Inc. (UHS)’s shares, while financial institutions hold 82.61%.

Notable insider trades include SUSSMAN ELLIOT J MD MBA, Director at Universal Health Services, Inc. (UHS), who sold 1722 shares on Aug 13 ’24, at $218.08 each, totaling $0.38 million. On Aug 12 ’24, Nimetz Warren J., Director, sold 3444 shares for $217.64 each, amounting to $0.75 million. Additionally, on Aug 07 ’24, Chen-Langenmayr Nina sold 850 shares at $212.11 each, generating $0.18 million.

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