Insider Decision: Nina Chen-Langenmayr Offloads $180K Worth Of Universal Health Servs Stock

A substantial insider sell was reported on August 8, by Nina Chen-Langenmayr, Board Member at Universal Health Servs UHS, based on the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Chen-Langenmayr executed a sale of 850 shares of Universal Health Servs with a total value of $180,293.

In the Friday's morning session, Universal Health Servs's shares are currently trading at $219.0, experiencing a up of 0.27%.

Unveiling the Story Behind Universal Health Servs

Universal Health Services Inc owns and operates acute care hospitals, behavior health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. The firm operates in two key segments: Acute Care Hospital Services and Behavioral Health Services. The Acute Care Hospital Services segment includes the firm's acute care hospitals, surgical hospitals, and surgery and oncology centers.

Unraveling the Financial Story of Universal Health Servs

Revenue Growth: Universal Health Servs's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 1.67%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Exploring Profitability:

• Gross Margin: Achieving a high gross margin of 90.07%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Universal Health Servs's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 4.32.

Debt Management: With a below-average debt-to-equity ratio of 0.77, Universal Health Servs adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: Universal Health Servs's P/E ratio of 16.05 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.0 is lower than the industry average, implying a discounted valuation for Universal Health Servs's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 9.76 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Unmasking the Significance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Universal Health Servs's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.