Healthcare Services Group, Inc. (NASDAQ:HCSG) Stock Has Average Target Price of $26.67 According to Analysts

Key Points

• Analysts hold a moderately bullish view of HCSG: six of ten covering firms rate it a buy and four recommend holding, with an average 12-month price target of $26.67 versus a recent price of $20.89.
• Recent analyst views were mixed: UBS raised its target to $30 and maintained a buy rating, while Robert W. Baird lowered its target to $24 and several firms downgraded the stock to hold.
• Healthcare Services Group exceeded quarterly EPS expectations, reporting $0.32 versus the $0.22 consensus, while revenue of $470.81 million was roughly in line with estimates. Institutional investors own approximately 97.97% of the company.

Healthcare Services Group, Inc. (NASDAQ:HCSG - Get Free Report) has been given an average recommendation of "Moderate Buy" by the ten research firms that are currently covering the firm, MarketBeat Ratings reports. Four analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $26.67.

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 company a "buy" rating in a research note on Wednesday, July 8th. Robert W. Baird cut their price objective on shares of Healthcare Services Group from $26.00 to $24.00 and set a "neutral" rating on the stock in a research report on Thursday, October 8th. Zacks Research cut shares of Healthcare Services Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 29th. Wall Street Zen downgraded shares of Healthcare Services Group from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Weiss Ratings upgraded shares of Healthcare Services Group from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, September 25th.

Healthcare Services Group Price Performance

Shares of HCSG opened at $20.89 on Wednesday. The business's 50-day moving average is $21.65 and its 200-day moving average is $21.74. The company has a market capitalization of $1.43 billion, a price-to-earnings ratio of 12.15 and a beta of 0.81. Healthcare Services Group has a fifty-two week low of $15.49 and a fifty-two week high of $25.75.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The business services provider reported $0.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company had revenue of $470.81 million during the quarter, compared to analyst estimates of $471.22 million. During the same quarter last year, the business posted ($0.44) EPS. Equities research analysts expect that Healthcare Services Group will post 1.14 earnings per share for the current fiscal year.

Insider Activity

In related news, COO Andrew Kush sold 15,598 shares of the company's stock in a transaction on 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 directly owned 22,741 shares in the company, valued at approximately $528,500.84. This represents a 40.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Healthcare Services Group

Several institutional investors have recently bought and sold shares of the stock. Nykredit A S acquired a new position in Healthcare Services Group during the second quarter valued at approximately $28,000. KBC Group NV bought a new stake in Healthcare Services Group in the first quarter valued at approximately $35,000. Sanctuary Advisors LLC increased its stake in Healthcare Services Group by 9.7% in the first quarter. Sanctuary Advisors LLC now owns 22,098 shares of the business services provider's stock valued at $410,000 after purchasing an additional 1,947 shares in the last quarter. Allworth Financial LP acquired a new stake in Healthcare Services Group in the second quarter worth $55,000. Finally, Public Employees Retirement System of Ohio acquired a new stake in Healthcare Services Group in the second quarter worth $66,000. 97.97% of the stock is currently owned by institutional investors.

About Healthcare Services Group

Healthcare Services Group, Inc NASDAQ: HCSG provides outsourced support services to healthcare and senior-living facilities in the United States. Its primary customers include skilled nursing facilities, nursing homes, continuing care retirement communities and other healthcare-related organizations.

The company's services are organized primarily around housekeeping and dining operations. Housekeeping services include cleaning, laundry and related environmental services, while dining services may include food procurement, meal preparation, dietary management and other support for resident and patient meal programs.

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