KING OF PRUSSIA, Pa. - Universal Health Services , Inc. (NYSE: NYSE:UHS), a leading healthcare provider, has declared a cash dividend for its shareholders. The company's Board of Directors has approved a dividend of $0.20 per share, to be distributed on December 17, 2024, to shareholders on record as of December 3, 2024.
The company, through its subsidiaries, operates a network of acute care hospitals, behavioral health facilities, and outpatient centers across the United States, Puerto Rico, and the United Kingdom (TADAWUL:4280). This dividend announcement reflects Universal Health Services' ongoing commitment to providing value to its shareholders.
The dividend is a part of the company's financial strategy and reflects its performance and outlook. Shareholders who have invested in UHS can expect the dividend to be paid in mid-December.
The payment of dividends is a common practice among established companies as a way to return a portion of their earnings back to their shareholders. It is also seen as a signal of a company's financial health and confidence in its future earnings.
This information is based on a press release statement from Universal Health Services, Inc. and is intended to provide shareholders and the investment community with key financial updates regarding the company.
In other recent news, Universal Health Services (UHS) has been the subject of several analyst reports following their third-quarter financial results. BofA Securities downgraded UHS from a Buy to a Neutral rating and adjusted the stock target to $223, citing potential risks following recent elections. Despite this, UHS reported a net income of $3.80 per diluted share and an 8.6% revenue growth, excluding its insurance subsidiary.
KeyBanc Capital Markets maintained its Sector Weight rating on UHS shares, indicating an expectation of average sector returns. TD Cowen adjusted its price target for UHS to $275.00, down from $283.00, while maintaining a Buy rating, following mixed Q3 results. Cantor Fitzgerald also adjusted its price target for UHS, raising it to $227.00, based on anticipated growth in acute trends.
RBC Capital Markets reduced its price target for UHS to $211, maintaining a Sector Perform rating. The firm noted potential growth support from incremental Medicaid supplemental programs expected to start next year. Deutsche Bank (ETR:DBKGn) reiterated its Buy rating on UHS with a steadfast price target of $240.00, expressing confidence in the company's growth outlook for 2024-2025.
These recent developments come as UHS plans facility openings in Las Vegas, D.C., and Florida, projecting a 6% to 7% revenue growth in acute care and mid-to-upper single-digit revenue growth in the behavioral health segment in 2025.
InvestingPro Insights
Universal Health Services' recent dividend announcement aligns with its strong financial position and commitment to shareholder value. According to InvestingPro data, UHS boasts a market capitalization of $13.02 billion and an attractive P/E ratio of 12.95, suggesting the stock may be undervalued relative to its earnings.
InvestingPro Tips highlight that UHS has maintained dividend payments for 22 consecutive years, underscoring its consistent approach to rewarding shareholders. This track record is particularly noteworthy given the company's recent performance, with a robust revenue growth of 9.93% over the last twelve months and an impressive EBITDA growth of 22.49% in the same period.
The company's financial health is further emphasized by its perfect Piotroski Score of 9, as noted in another InvestingPro Tip. This score indicates strong operational efficiency and financial stability, factors that support UHS's ability to sustain and potentially grow its dividend payments.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips on Universal Health Services, providing deeper insights into the company's financial outlook and market position.
The article is enriched with InvestingPro Insights to provide readers with a more comprehensive understanding of Universal Health Services' financial position and market performance in relation to its dividend announcement.
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