Healthcare Services Group, Inc. (NASDAQ:HCSG) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Healthcare Services Group, Inc. (NASDAQ:HCSG) has received a consensus rating of "Moderate Buy" from six analysts, with three recommending a buy and three a hold.
• The stock's average 12-month price target is $16.25, reflecting recent fluctuations in analysts' ratings, including upgrades and downgrades.
• In its latest quarterly report, HCSG achieved $0.21 earnings per share, surpassing analysts' expectations, with revenue rising 7.6% year-over-year to $458.50 million.

Healthcare Services Group, Inc. (NASDAQ:HCSG - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the six analysts that are currently covering the firm, Marketbeat reports. Three analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $16.25.

Several research firms have issued reports on HCSG. Zacks Research cut shares of Healthcare Services Group from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. Wall Street Zen cut shares of Healthcare Services Group from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 26th. Macquarie raised shares of Healthcare Services Group from a "neutral" rating to an "outperform" rating and increased their target price for the company from $15.00 to $16.00 in a research report on Tuesday, July 29th. Benchmark increased their target price on shares of Healthcare Services Group from $17.00 to $19.00 and gave the company a "buy" rating in a research report on Thursday, July 24th. Finally, Robert W. Baird increased their target price on shares of Healthcare Services Group from $13.00 to $15.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th.

Healthcare Services Group Price Performance

Shares of Healthcare Services Group stock opened at $16.30 on Friday. The stock has a market capitalization of $1.18 billion, a PE ratio of 116.43 and a beta of 0.70. The company's fifty day simple moving average is $15.35 and its 200-day simple moving average is $13.84. Healthcare Services Group has a 1-year low of $9.13 and a 1-year high of $16.91.

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

Insider Transactions at Healthcare Services Group

In other Healthcare Services Group news, EVP John Christopher Shea sold 21,368 shares of the company's stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $13.25, for a total transaction of $283,126.00. Following the transaction, the executive vice president owned 32,976 shares in the company, valued at approximately $436,932. This represents a 39.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Allspring Global Investments Holdings LLC increased its stake in Healthcare Services Group by 1,152.0% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 166,643 shares of the business services provider's stock valued at $1,680,000 after purchasing an additional 153,333 shares in the last quarter. American Century Companies Inc. increased its stake in Healthcare Services Group by 190.1% during the 1st quarter. American Century Companies Inc. now owns 451,936 shares of the business services provider's stock valued at $4,556,000 after purchasing an additional 296,159 shares in the last quarter. Mackenzie Financial Corp increased its stake in Healthcare Services Group by 0.8% during the 1st quarter. Mackenzie Financial Corp now owns 4,128,934 shares of the business services provider's stock valued at $41,620,000 after purchasing an additional 34,037 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in Healthcare Services Group during the 1st quarter valued at approximately $1,121,000. Finally, Palisade Capital Management LP increased its stake in Healthcare Services Group by 0.9% during the 1st quarter. Palisade Capital Management LP now owns 2,237,866 shares of the business services provider's stock valued at $22,558,000 after purchasing an additional 20,720 shares in the last quarter. Institutional investors and hedge funds own 97.97% of the company's stock.

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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