8 Knots Management LLC Takes Position in Healthcare Services Group, Inc. $HCSG

Key Points

• 8 Knots Management acquired 3,358,681 shares of Healthcare Services Group in Q3 (≈4.77% of the company), a $56.5M position that represents about 6.4% of 8 Knots' portfolio and is its 6th-largest holding.
• HCSG beat Q results with $0.44 EPS vs. $0.23 expected and $466.7M revenue (up 6.6% YoY); the stock has a $1.37B market cap, a 23.8 P/E, and a consensus analyst target near $22 (rating: Hold).
• Insiders have been net sellers—146,962 shares (~$3.01M) sold in the last 90 days including sales by the EVP and CAO—while institutional investors own roughly 98% of the shares.

8 Knots Management LLC acquired a new position in shares of Healthcare Services Group, Inc. (NASDAQ:HCSG - Free Report) during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 3,358,681 shares of the business services provider's stock, valued at approximately $56,527,000. Healthcare Services Group makes up about 6.4% of 8 Knots Management LLC's investment portfolio, making the stock its 6th biggest position. 8 Knots Management LLC owned about 4.77% of Healthcare Services Group at the end of the most recent reporting period.

Several other large investors also recently made changes to their positions in the company. EverSource Wealth Advisors LLC increased its holdings in shares of Healthcare Services Group by 163.4% during the second quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the business services provider's stock valued at $33,000 after acquiring an additional 1,356 shares in the last quarter. GAMMA Investing LLC lifted its holdings in shares of Healthcare Services Group by 94.9% in the 3rd quarter. GAMMA Investing LLC now owns 2,843 shares of the business services provider's stock worth $48,000 after purchasing an additional 1,384 shares in the last quarter. LSV Asset Management bought a new position in shares of Healthcare Services Group in the 3rd quarter worth $108,000. Tower Research Capital LLC TRC grew its position in Healthcare Services Group by 600.8% in the 2nd quarter. Tower Research Capital LLC TRC now owns 10,259 shares of the business services provider's stock valued at $154,000 after purchasing an additional 8,795 shares during the period. Finally, Los Angeles Capital Management LLC acquired a new stake in Healthcare Services Group in the 2nd quarter valued at $156,000. 97.97% of the stock is currently owned by institutional investors and hedge funds.

Healthcare Services Group Trading Up 0.6%

Shares of NASDAQ:HCSG opened at $19.54 on Friday. The stock has a market cap of $1.37 billion, a PE ratio of 23.83 and a beta of 0.73. The stock's fifty day simple moving average is $19.93 and its two-hundred day simple moving average is $18.34. Healthcare Services Group, Inc. has a 1-year low of $9.13 and a 1-year high of $22.98.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last posted its earnings results on Wednesday, February 11th. The business services provider reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.21. Healthcare Services Group had a net margin of 3.21% and a return on equity of 16.04%. The firm had revenue of $466.68 million during the quarter, compared to analyst estimates of $467.24 million. During the same quarter in the prior year, the business posted $0.16 EPS. The business's revenue was up 6.6% compared to the same quarter last year. On average, sell-side analysts forecast that Healthcare Services Group, Inc. will post 0.74 earnings per share for the current fiscal year.

Insider Buying and Selling at Healthcare Services Group

In other Healthcare Services Group news, EVP Patrick J. Orr sold 44,615 shares of the stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $20.53, for a total value of $915,945.95. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Andrew M. Brophy sold 2,490 shares of Healthcare Services Group stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $21.75, for a total transaction of $54,157.50. Following the transaction, the chief accounting officer directly owned 15,735 shares in the company, valued at approximately $342,236.25. This represents a 13.66% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 146,962 shares of company stock worth $3,014,100. Insiders own 2.60% of the company's stock.

Analysts Set New Price Targets

HCSG has been the topic of several research reports. BMO Capital Markets restated a "market perform" rating and set a $22.00 price objective on shares of Healthcare Services Group in a report on Thursday, February 12th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Healthcare Services Group in a report on Monday, December 29th. Robert W. Baird set a $23.00 target price on shares of Healthcare Services Group in a research report on Thursday, February 12th. Royal Bank Of Canada assumed coverage on shares of Healthcare Services Group in a report on Tuesday, March 3rd. They issued a "sector perform" rating and a $22.00 target price on the stock. Finally, Benchmark reaffirmed a "buy" rating on shares of Healthcare Services Group in a research report on Thursday, February 12th. Four investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $22.00.

Healthcare Services Group Company Profile

Healthcare Services Group, Inc NASDAQ: HCSG is a leading provider of support services to healthcare facilities across the United States. The company specializes in environmental services, including housekeeping and sanitation, as well as linen and laundry management. In addition, Healthcare Services Group offers dietary and nutrition services, catering to hospitals, skilled nursing facilities, assisted living communities and other long-term care providers.

Founded as a family-owned business in the late 1970s, the company completed its initial public offering in 1997.

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