Insider Transaction: Elliot J. Sussman M.D. Sells $375K Worth Of Universal Health Servs Shares

Elliot J. Sussman M.D., Board Member at Universal Health Servs UHS, executed a substantial insider sell on August 15, according to an SEC filing.

What Happened: M.D.'s decision to sell 1,722 shares of Universal Health Servs was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $375,533.

Tracking the Thursday's morning session, Universal Health Servs shares are trading at $221.85, showing a down of 0.0%.

About 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.

Universal Health Servs: A Financial Overview

Positive Revenue Trend: Examining Universal Health Servs's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.13% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 90.07%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Universal Health Servs's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average 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.

Market Valuation:

• Price to Earnings (P/E) Ratio: Universal Health Servs's P/E ratio of 16.3 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.01 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Universal Health Servs's EV/EBITDA ratio at 9.86 suggests potential undervaluation, falling below industry averages.

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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Exploring the Significance of Insider Trading

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.