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

Key Points

• Healthcare Services Group, Inc. (NASDAQ:HCSG) has received a consensus rating of "Buy" from five research firms, with an average price target of $16.25.
• The firm reported a net margin of 0.61% and revenue of $458.50 million for the recent quarter, exceeding analysts' expectations.
• Institutional investors own 97.97% of the company's shares, highlighting strong institutional confidence in the stock.

Shares of Healthcare Services Group, Inc. (NASDAQ:HCSG - Get Free Report) have earned a consensus recommendation of "Buy" from the five research firms that are currently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a hold recommendation, three have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among analysts that have issued ratings on the stock in the last year is $16.25.

A number of equities analysts recently weighed in on HCSG shares. Macquarie upgraded shares of Healthcare Services Group from a "neutral" rating to an "outperform" rating and lifted their price objective for the company from $15.00 to $16.00 in a research report on Tuesday, July 29th. Wall Street Zen lowered shares of Healthcare Services Group from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 26th. Benchmark boosted their target price on shares of Healthcare Services Group from $17.00 to $19.00 and gave the stock a "buy" rating in a research report on Thursday, July 24th. Robert W. Baird boosted their target price on shares of Healthcare Services Group from $13.00 to $15.00 and gave the stock a "neutral" rating in a research report on Thursday, July 24th. Finally, Zacks Research raised Healthcare Services Group to a "strong-buy" rating in a research note on Tuesday, August 12th.

Insiders Place Their Bets

In related news, EVP John Christopher Shea sold 21,368 shares of the business's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $13.25, for a total value of $283,126.00. Following the completion of the transaction, the executive vice president owned 32,976 shares of the company's stock, valued at approximately $436,932. The trade was a 39.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in HCSG. Price T Rowe Associates Inc. MD raised its stake in Healthcare Services Group by 17.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 55,654 shares of the business services provider's stock valued at $647,000 after purchasing an additional 8,074 shares during the last quarter. Northern Trust Corp raised its stake in Healthcare Services Group by 8.4% in the 4th quarter. Northern Trust Corp now owns 771,772 shares of the business services provider's stock valued at $8,964,000 after purchasing an additional 59,829 shares during the last quarter. Ameriprise Financial Inc. raised its stake in Healthcare Services Group by 5.9% in the 4th quarter. Ameriprise Financial Inc. now owns 959,293 shares of the business services provider's stock valued at $11,142,000 after purchasing an additional 53,628 shares during the last quarter. Deutsche Bank AG raised its stake in Healthcare Services Group by 14.8% in the 4th quarter. Deutsche Bank AG now owns 176,825 shares of the business services provider's stock valued at $2,055,000 after purchasing an additional 22,834 shares during the last quarter. Finally, Janus Henderson Group PLC raised its stake in Healthcare Services Group by 12.5% in the 4th quarter. Janus Henderson Group PLC now owns 1,266,785 shares of the business services provider's stock valued at $14,714,000 after purchasing an additional 140,708 shares during the last quarter. Institutional investors and hedge funds own 97.97% of the company's stock.

Healthcare Services Group Price Performance

NASDAQ:HCSG opened at $15.91 on Tuesday. The firm's fifty day moving average price is $14.51 and its 200 day moving average price is $13.15. Healthcare Services Group has a 1-year low of $9.13 and a 1-year high of $16.18. The firm has a market cap of $1.15 billion, a price-to-earnings ratio of 113.64 and a beta of 0.66.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last posted its quarterly earnings data on Wednesday, July 23rd. The business services provider reported $0.21 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.01. Healthcare Services Group had a net margin of 0.61% and a return on equity of 11.74%. The firm had revenue of $458.50 million for the quarter, compared to analyst estimates of $450.78 million. During the same period last year, the firm posted $0.20 EPS. Healthcare Services Group's quarterly revenue was up 7.6% on a year-over-year basis. Healthcare Services Group has set its Q3 2025 guidance at EPS. As a group, analysts expect that Healthcare Services Group will post 0.74 earnings per share for the current fiscal year.

About Healthcare Services Group

Healthcare Services Group, Inc provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary.

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