Universal Health Services (NYSE:UHS) Shares Down 5.7% – Here’s What Happened

Universal Health Services, Inc. (NYSE:UHS)’s stock price was down 5.7% during mid-day trading on Tuesday. The company traded as low as $177.08 and last traded at $175.0410. Approximately 286,897 shares changed hands during trading, a decline of 65% from the average session volume of 828,588 shares. The stock had previously closed at $185.71.

Key Stories Impacting Universal Health Services

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

• Positive Sentiment: Third-quarter revenue rose 5.3% year over year to $4.73 billion, slightly exceeding the $4.71 billion consensus estimate. Patient volumes also increased, indicating continued demand for UHS’s services. UHS Announces Third-Quarter 2026 Results
• Neutral Sentiment: UHS reported $5.22 in adjusted earnings per share, narrowly above some estimates but below the $5.31 Zacks consensus and down from $5.69 a year earlier. Net income declined to $308.7 million from $373.0 million, highlighting the difference between top-line growth and bottom-line performance. UHS Misses Third-Quarter Earnings Estimates
• Negative Sentiment: Analysts cited weaker pricing, particularly in Acute Care, along with rising costs as the main reasons for an EBITDA shortfall. These pressures offset higher patient volumes and contributed to lower earnings and margins. UHS Third-Quarter EBITDA Miss
• Negative Sentiment: Surgical volumes declined as some procedures continued migrating to ambulatory surgery centers and physician offices, creating a structural headwind for UHS’s hospital business. UHS Surgical Volumes Dip
• Negative Sentiment: Robert W. Baird lowered its UHS price target from $166 to $156 and maintained a neutral rating, signaling reduced confidence in near-term upside. The tentative settlement of patient-abuse lawsuits may also create financial and reputational uncertainty. Baird UHS Rating and Price Target

Analyst Ratings Changes

Several research analysts recently weighed in on UHS shares. Raymond James Financial reaffirmed a “market perform” rating on shares of Universal Health Services in a report on Thursday. Weiss Ratings raised Universal Health Services from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, October 14th. UBS Group reaffirmed a “buy” rating on shares of Universal Health Services in a report on Monday, August 31st. Barclays reduced their price objective on shares of Universal Health Services from $179.00 to $168.00 and set an “equal weight” rating on the stock in a research report on Tuesday, July 28th. Finally, Robert W. Baird lowered their target price on shares of Universal Health Services from $166.00 to $156.00 and set a “neutral” rating on the stock in a report on Thursday. Six analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $204.31.

Universal Health Services Stock Performance

The company has a debt-to-equity ratio of 0.54, a current ratio of 1.12 and a quick ratio of 1.04. The business has a 50-day moving average of $177.21 and a 200-day moving average of $177.62. The company has a market capitalization of $10.16 billion, a P/E ratio of 7.02, a P/E/G ratio of 1.17 and a beta of 1.03.

Universal Health Services (NYSE:UHS) last announced its earnings results on Tuesday, October 27th. The health services provider reported $5.22 earnings per share for the quarter, beating the consensus estimate of $5.19 by $0.03. The business had revenue of $4.73 billion for the quarter, compared to the consensus estimate of $4.71 billion. Universal Health Services had a net margin of 8.42% and a return on equity of 19.39%. The business’s revenue for the quarter was up 5.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $5.69 earnings per share. On average, sell-side analysts anticipate that Universal Health Services, Inc. will post 22.85 EPS for the current year.

Institutional Trading of Universal Health Services

Several institutional investors have recently added to or reduced their stakes in UHS. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Universal Health Services in the 3rd quarter valued at about $2,697,000. Aviance Capital Partners LLC grew its position in shares of Universal Health Services by 11.5% in the 3rd quarter. Aviance Capital Partners LLC now owns 9,541 shares of the health services provider’s stock worth $1,663,000 after buying an additional 983 shares during the last quarter. ProShare Advisors LLC raised its stake in shares of Universal Health Services by 2.1% during the 3rd quarter. ProShare Advisors LLC now owns 19,697 shares of the health services provider’s stock worth $3,432,000 after acquiring an additional 398 shares in the last quarter. Vise Technologies Inc. raised its stake in shares of Universal Health Services by 3.0% during the 3rd quarter. Vise Technologies Inc. now owns 2,998 shares of the health services provider’s stock worth $522,000 after acquiring an additional 87 shares in the last quarter. Finally, Cidel Asset Management Inc. bought a new position in shares of Universal Health Services during the 3rd quarter worth approximately $209,000. Institutional investors own 86.05% of the company’s stock.

Universal Health Services Company Profile

Universal Health Services, Inc (NYSE: UHS) is a healthcare services company that owns and operates hospitals, outpatient facilities and other healthcare providers. Its operations are focused primarily on acute care and behavioral health services.

The company’s acute care operations include general and specialty hospitals, ambulatory surgery centers, emergency departments, physician practices and other outpatient services. Its behavioral health business provides inpatient and outpatient treatment for mental health conditions, substance-use disorders and related needs.

Universal Health Services serves patients across the United States and Puerto Rico, with additional behavioral health operations in the United Kingdom.