Healthcare Services Group, Inc. (NASDAQ:HCSG) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Healthcare Services Group has a “Moderate Buy” consensus rating from nine analysts: six recommend buying, one strongly recommends buying, and two rate the stock as a hold. The average 12-month price target is $26.50.
• The company exceeded quarterly earnings expectations, reporting $0.32 in EPS versus the $0.22 consensus, while revenue of $470.81 million was roughly in line with estimates.
• Institutional ownership is substantial, with hedge funds and other institutions holding 97.97% of outstanding shares; meanwhile, the COO sold 15,598 shares worth about $362,500.

Healthcare Services Group, Inc. (NASDAQ:HCSG - Get Free Report) has earned an average rating of "Moderate Buy" from the nine analysts that are currently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold recommendation, six have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $26.50.

Several brokerages recently commented on HCSG. UBS Group boosted their price target on Healthcare Services Group from $27.00 to $30.00 and gave the stock a "buy" rating in a research report on Wednesday, July 8th. Oppenheimer began coverage on Healthcare Services Group in a report on Wednesday, August 19th. They issued an "outperform" rating and a $28.00 price objective on the stock. Wall Street Zen lowered shares of Healthcare Services Group from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Zacks Research upgraded shares of Healthcare Services Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 3rd. Finally, Weiss Ratings downgraded shares of Healthcare Services Group from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday, September 9th.

Healthcare Services Group Trading Down 0.1%

Shares of Healthcare Services Group stock opened at $21.47 on Friday. Healthcare Services Group has a twelve month low of $15.13 and a twelve month high of $25.75. The firm has a market capitalization of $1.47 billion, a PE ratio of 12.48 and a beta of 0.80. The firm's 50-day moving average price is $22.62 and its 200 day moving average price is $21.63.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The business services provider reported $0.32 EPS for the quarter, topping the consensus estimate of $0.22 by $0.10. Healthcare Services Group had a return on equity of 18.97% and a net margin of 6.59%.The company had revenue of $470.81 million during the quarter, compared to analyst estimates of $471.22 million. During the same period in the previous year, the business earned ($0.44) EPS. On average, sell-side analysts predict that Healthcare Services Group will post 1.14 EPS for the current fiscal year.

Insider Buying and Selling

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

Institutional Investors Weigh In On Healthcare Services Group

Large investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in Healthcare Services Group during the second quarter worth approximately $279,379,000. Dimensional Fund Advisors LP grew its holdings in Healthcare Services Group by 2.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,400,681 shares of the business services provider's stock valued at $44,534,000 after buying an additional 62,689 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Healthcare Services Group by 454.0% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,405,952 shares of the business services provider's stock worth $26,080,000 after acquiring an additional 1,152,176 shares during the last quarter. Jupiter Topco LLC acquired a new stake in shares of Healthcare Services Group in the 2nd quarter worth $22,406,000. Finally, Palisade Capital Management LP purchased a new position in shares of Healthcare Services Group during the 2nd quarter worth $17,845,000. 97.97% of the stock is currently owned by hedge funds and other institutional investors.

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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