Franklin Resources Inc. has reduced its stake in Universal Health Services, Inc. (NYSE: UHS) by 26.5% during the second quarter of 2023, according to a recent filing with the Securities and Exchange Commission (SEC). The asset management firm sold 41,877 shares, bringing its total holdings down to 116,158 shares, valued at approximately $21,042,000.
This significant divestment forms part of a broader trend among hedge funds and institutional investors adjusting their positions in Universal Health Services. For instance, Mediolanum International Funds Ltd. increased its stake by 83.8%, acquiring an additional 5,185 shares to reach a total of 11,373 shares, valued at around $2,025,000. Similarly, MAI Capital Management raised its holdings by 36.7%, now owning 451 shares worth $82,000.
In a more aggressive move, Neo Ivy Capital Management expanded its position by 249.8%, increasing its total to 10,432 shares valued at $1,890,000. JPMorgan Chase & Co. also enhanced its investment, acquiring an additional 15,621 shares for a total of 276,562 shares, which are now worth $50,099,000. Meanwhile, the Swiss National Bank increased its holdings by 5.9%, owning 175,300 shares valued at $31,756,000.
Overall, hedge funds and institutional investors now control 86.05% of Universal Health Services’ shares.
Insider Trading at Universal Health Services
Recent insider transactions have also drawn attention. Warren J. Nimetz, a director at Universal Health Services, sold 3,817 shares on November 11, 2023, at an average price of $223.30, resulting in a total transaction value of $852,336.10. Following this sale, Nimetz holds 8,481 shares, valued at approximately $1,893,807.30, reflecting a 31.04% decrease in his position.
Additionally, director Elliot J. Md Mba Sussman sold 965 shares on October 29, 2023, for a total of $217,800.50. Post-transaction, Sussman owns 6,113 shares valued at $1,379,704.10, marking a 13.63% reduction in his stake. Insiders now collectively hold 16.40% of the company’s stock.
Universal Health Services Earnings and Dividend Announcement
On October 28, 2023, Universal Health Services reported its quarterly earnings, revealing earnings per share (EPS) of $5.69, surpassing analysts’ expectations of $4.66 by $1.03. The company achieved a net margin of 8.09% and a return on equity of 19.47%, with quarterly revenue reaching $4.50 billion, exceeding forecasts of $4.32 billion. This represents a year-over-year revenue growth of 13.4%, compared to $3.71 EPS in the same quarter last year.
The company also announced a quarterly dividend of $0.20, scheduled for payment on December 15, 2023. Shareholders of record on December 1, 2023 will receive this dividend, with an annualized dividend yield of 0.3% and a payout ratio of 3.80%.
Analysts have varied opinions on Universal Health Services’ stock. Morgan Stanley set a price target of $233.00, while JPMorgan Chase & Co. lowered its target to $195.00 and assigned a “neutral” rating. Conversely, Barclays raised its target from $250.00 to $263.00, giving the company an “overweight” rating. Consensus among analysts shows one “strong buy,” six “buy,” eight “hold,” and one “sell” rating, with an average price target of $232.64.
Universal Health Services, Inc. operates through its subsidiaries, managing a network of acute care hospitals and behavioral health facilities, offering a wide range of medical services including general surgery, emergency care, and specialized behavioral health services.
