Healthcare Services Group, Inc. (NASDAQ:HCSG) Stock Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analyst sentiment is moderately bullish: Ten firms give Healthcare Services Group an average “Moderate Buy” rating, with a mean 12-month price target of $26.67.
• The company reported quarterly EPS of $0.36, beating the $0.24 consensus estimate, while revenue of $479.6 million came in slightly below estimates. EPS was down from $0.59 in the same quarter a year earlier.
• Executive Vice President Jason J. Bundick sold 18,239 shares at an average price of $25.11, reducing his direct holdings by 51.58%.

Healthcare Services Group, Inc. (NASDAQ:HCSG - Get Free Report) has earned an average recommendation of "Moderate Buy" from the ten ratings firms that are presently covering the stock, MarketBeat reports. Three investment analysts have rated the stock with a hold recommendation, six have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $26.67.

Several research firms have weighed in on HCSG. Robert W. Baird lowered their target price on shares of Healthcare Services Group from $26.00 to $24.00 and set a "neutral" rating for the company in a research note on Thursday, October 8th. Oppenheimer started coverage on shares of Healthcare Services Group in a research report on Wednesday, August 19th. They issued an "outperform" rating and a $28.00 price target on the stock. Zacks Research raised shares of Healthcare Services Group from a "hold" rating to a "strong-buy" rating in a report on Wednesday, October 28th. 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 raised shares of Healthcare Services Group from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, September 25th.

Healthcare Services Group Trading Down 3.3%

Shares of NASDAQ HCSG opened at $24.28 on Friday. Healthcare Services Group has a twelve month low of $16.78 and a twelve month high of $27.05. The company has a market capitalization of $1.64 billion, a price-to-earnings ratio of 16.30 and a beta of 0.92. The business has a 50 day simple moving average of $22.23 and a 200-day simple moving average of $21.54.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last posted its quarterly earnings results on Wednesday, October 21st. The business services provider reported $0.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.12. The business had revenue of $479.60 million for the quarter, compared to analyst estimates of $480.80 million. Healthcare Services Group had a return on equity of 20.22% and a net margin of 5.58%. During the same period in the prior year, the company posted $0.59 EPS. As a group, equities analysts predict that Healthcare Services Group will post 1.32 earnings per share for the current year.

Insider Transactions at Healthcare Services Group

In other Healthcare Services Group news, EVP Jason J. Bundick sold 18,239 shares of Healthcare Services Group stock in a transaction that occurred on Monday, October 26th. The stock was sold at an average price of $25.11, for a total value of $457,981.29. Following the completion of the transaction, the executive vice president directly owned 17,125 shares in the company, valued at $430,008.75. The trade was a 51.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 2.90% of the stock is owned by corporate insiders.

Institutional Trading of Healthcare Services Group

A number of institutional investors and hedge funds have recently made changes to their positions in HCSG. Bank of America Corp DE acquired a new position in shares of Healthcare Services Group during the second quarter valued at $3,661,000. Meros Investment Management LP bought a new position in shares of Healthcare Services Group during the second quarter worth about $7,112,502. Empowered Funds LLC increased its holdings 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 worth $4,004,000 after acquiring an additional 119,290 shares during the period. Legal & General Group Plc acquired a new stake in shares of Healthcare Services Group in the 2nd quarter worth about $4,169,000. Finally, SummerHaven Investment Management LLC bought a new stake in Healthcare Services Group in the 3rd quarter valued at about $1,484,000. 97.97% of the stock is currently owned by institutional investors and hedge funds.

Healthcare Services Group Company Profile

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

The company's principal service offerings include housekeeping, laundry and linen services, as well as dining and nutritional services. These services are designed to help healthcare operators manage nonclinical functions, maintain facility standards and support the daily needs of residents and patients.

Healthcare Services Group was founded in 1976 and is headquartered in Bensalem, Pennsylvania.

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