Healthcare Services Group (NASDAQ:HCSG) Stock Rating Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded Healthcare Services Group from “strong buy” to “hold,” following a similar downgrade by Wall Street Zen. Despite this, analysts maintain a consensus “moderate buy” rating with an average price target of $26.50.
• HCSG opened at $20.45, below its 50-day and 200-day moving averages, with a market capitalization of approximately $1.40 billion. The stock has traded between $15.13 and $25.75 over the past year.
• The company exceeded quarterly earnings expectations, reporting $0.32 EPS versus the $0.22 estimate, while revenue of $470.81 million was slightly below forecasts. Institutional investors own nearly 98% of the company, and its COO recently sold shares worth about $362,500.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday, Zacks reports.

HCSG has been the topic of several other reports. Wall Street Zen downgraded Healthcare Services Group from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Oppenheimer started coverage on shares of Healthcare Services Group in a research note on Wednesday, August 19th. They set an "outperform" rating and a $28.00 price objective on the stock. Weiss Ratings raised shares of Healthcare Services Group from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, September 25th. Finally, UBS Group upped their target price on shares of Healthcare Services Group from $27.00 to $30.00 and gave the company a "buy" rating in a research note on Wednesday, July 8th. Six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $26.50.

Healthcare Services Group Price Performance

NASDAQ:HCSG opened at $20.45 on Tuesday. The firm has a 50 day simple moving average of $22.07 and a 200-day simple moving average of $21.65. The firm has a market cap of $1.40 billion, a PE ratio of 11.89 and a beta of 0.80. Healthcare Services Group has a 1-year low of $15.13 and a 1-year high of $25.75.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The business services provider reported $0.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.10. Healthcare Services Group had a net margin of 6.59% and a return on equity of 18.97%. The business had revenue of $470.81 million for the quarter, compared to the consensus estimate of $471.22 million. During the same quarter in the prior year, the firm posted ($0.44) earnings per share. As a group, sell-side analysts expect that Healthcare Services Group will post 1.14 earnings per share for the current fiscal year.

Insider Buying and Selling at Healthcare Services Group

In other Healthcare Services Group news, COO Andrew Kush sold 15,598 shares of the company's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $23.24, for a total value of $362,497.52. Following the transaction, the chief operating officer owned 22,741 shares of the company's stock, valued at approximately $528,500.84. This represents a 40.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 2.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Healthcare Services Group

A number of large investors have recently made changes to their positions in the company. Meros Investment Management LP acquired a new position in shares of Healthcare Services Group during the 2nd quarter worth $7,112,502. Empowered Funds LLC lifted its stake in shares of Healthcare Services Group by 123.6% in the 1st quarter. Empowered Funds LLC now owns 215,824 shares of the business services provider's stock valued at $4,004,000 after purchasing an additional 119,290 shares during the last quarter. Legal & General Group Plc bought a new stake in Healthcare Services Group in the second quarter worth $4,169,000. Dimensional Fund Advisors LP boosted its holdings in Healthcare Services Group by 2.7% in the first quarter. Dimensional Fund Advisors LP now owns 2,400,681 shares of the business services provider's stock worth $44,534,000 after purchasing an additional 62,689 shares in the last quarter. Finally, BlackRock Inc. acquired a new position in Healthcare Services Group during the second quarter worth $279,379,000. Institutional investors and hedge funds own 97.97% of the company's stock.

About Healthcare Services Group

Healthcare Services Group, Inc NASDAQ: HCSG provides outsourced support services to healthcare and senior living facilities across the United States. Its primary customers include nursing homes, post-acute care centers, hospitals, assisted living communities and other healthcare-related facilities.

The company operates through two principal service areas. Its environmental services business provides housekeeping, laundry and linen management, waste handling and related services. Its dietary services business supports food procurement, meal preparation, dining operations and nutrition-related programs for residents and patients.

Healthcare Services Group was founded in 1976 and has historically focused on helping healthcare providers manage nonclinical operations through contract-based services.

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