Universal Health Services (NYSE:UHS) Downgraded to Buy Rating by Wall Street Zen

Wall Street Zen downgraded shares of Universal Health Services (NYSE:UHS) from a strong-buy rating to a buy rating in a research note released on Saturday.

Other analysts also recently issued reports about the stock. Guggenheim increased their price objective on shares of Universal Health Services from $253.00 to $274.00 and gave the company a “buy” rating in a research report on Tuesday, December 2nd. Weiss Ratings reiterated a “buy (b)” rating on shares of Universal Health Services in a report on Monday, December 29th. Raymond James Financial set a $270.00 price target on shares of Universal Health Services and gave the company an “outperform” rating in a research report on Monday, November 3rd. UBS Group restated a “buy” rating on shares of Universal Health Services in a report on Thursday, January 15th. Finally, Barclays increased their target price on Universal Health Services from $262.00 to $268.00 and gave the company an “overweight” rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $233.86.

Universal Health Services Price Performance

Shares of UHS opened at $205.74 on Friday. Universal Health Services has a fifty-two week low of $152.33 and a fifty-two week high of $246.32. The firm’s 50-day simple moving average is $215.88 and its two-hundred day simple moving average is $210.92. The stock has a market cap of $12.85 billion, a PE ratio of 8.89, a price-to-earnings-growth ratio of 0.65 and a beta of 1.26. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.96 and a current ratio of 1.03.

Universal Health Services (NYSE:UHS) last posted its quarterly earnings results on Wednesday, February 25th. The health services provider reported $5.88 earnings per share for the quarter, missing the consensus estimate of $5.92 by ($0.04). The company had revenue of $4.49 billion during the quarter, compared to analysts’ expectations of $4.50 billion. Universal Health Services had a return on equity of 19.84% and a net margin of 8.57%.The business’s quarterly revenue was up 9.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $4.92 EPS. Universal Health Services has set its FY 2026 guidance at 22.640-24.520 EPS. Analysts anticipate that Universal Health Services will post 15.92 earnings per share for the current fiscal year.

Universal Health Services Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be issued a $0.20 dividend. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $0.80 annualized dividend and a dividend yield of 0.4%. Universal Health Services’s payout ratio is presently 3.46%.

Institutional Investors Weigh In On Universal Health Services

Hedge funds and other institutional investors have recently made changes to their positions in the business. DGS Capital Management LLC increased its holdings in Universal Health Services by 13.6% during the fourth quarter. DGS Capital Management LLC now owns 11,009 shares of the health services provider’s stock valued at $2,400,000 after buying an additional 1,314 shares during the last quarter. SG Trading Solutions LLC purchased a new stake in shares of Universal Health Services in the 4th quarter worth $227,000. Kera Capital Partners Inc. increased its stake in shares of Universal Health Services by 112.8% in the 4th quarter. Kera Capital Partners Inc. now owns 4,116 shares of the health services provider’s stock worth $828,000 after purchasing an additional 2,182 shares in the last quarter. Virtu Financial LLC bought a new position in Universal Health Services in the 4th quarter worth $508,000. Finally, Corient Private Wealth LLC lifted its position in Universal Health Services by 348.7% during the fourth quarter. Corient Private Wealth LLC now owns 162,985 shares of the health services provider’s stock valued at $35,534,000 after purchasing an additional 126,662 shares in the last quarter. Hedge funds and other institutional investors own 86.05% of the company’s stock.

Key Universal Health Services News

Here are the key news stories impacting Universal Health Services this week:

• Positive Sentiment: UHS reiterated an FY‑2026 revenue target up to $18.8B and said it will accelerate investments in AI and outpatient expansion — strategic growth initiatives that support longer‑term revenue/earnings upside. Article Title
• Positive Sentiment: Barclays raised its price target to $268 and kept an overweight rating, indicating at least one major shop sees meaningful upside from current levels. Article Title
• Positive Sentiment: UHS reported strong operating performance in 2025 (double‑digit margins and higher net income) and management is forecasting additional revenue and earnings gains in 2026 — supportive of valuation over time. Article Title
• Neutral Sentiment: UHS provided FY‑2026 EPS guidance of $22.64–$24.52 (consensus ~ $23.44) and revenue guidance of $18.4–$18.8B (slightly above consensus), a mixed signal: upside on revenue but a wide EPS band that leaves near‑term expectations ambiguous. Article Title
• Neutral Sentiment: Cantor Fitzgerald lowered its price target to $229 and moved to a neutral rating — a more cautious stance that partly offsets Barclays’ bullish view. Article Title
• Neutral Sentiment: The full Q4 earnings call transcript and analyst notes are now public, providing more detail for investors to re‑rate guidance assumptions and margin drivers. Article Title
• Negative Sentiment: Q4 EPS came in at $5.88 vs. the $5.92 consensus — management cited softer admissions (lower medical care demand) and rising costs, which pressured the quarter despite 9.1% revenue growth. Article Title
• Negative Sentiment: UHS warned of an approximate $35M earnings hit tied to a new California psychiatric staffing mandate — a tangible near‑term cost that will weigh on margins until absorbed. Article Title
• Negative Sentiment: Coverage and headlines emphasized the earnings miss and S&P500 pressure, prompting negative headlines and short‑term selling in some outlets. Article Title

About Universal Health Services

Universal Health Services, Inc (NYSE: UHS) is one of the largest diversified health care management companies in the United States, offering a broad spectrum of services through its acute care hospital and behavioral health segments. The company operates general acute care hospitals, surgical hospitals and ambulatory centers, as well as inpatient and outpatient behavioral health facilities. Its network provides emergency and specialized medicine, diagnostic imaging, laboratory services, advanced surgical care and rehabilitation, complemented by a comprehensive array of behavioral services including psychiatric treatment, addiction programs and developmental disabilities care.

In the acute care segment, UHS’s facilities deliver services ranging from emergency department treatment and intensive care to maternity care and outpatient surgery.