Healthcare Services Group (NASDAQ:HCSG) Announces Earnings Results

Key Points

• Healthcare Services Group reported earnings of $0.23 per share, surpassing analyst estimates of $0.21, with a year-over-year revenue increase of 8.5%.
• The firm has seen a significant increase in share price, up 13.6% post-earnings release, with a current market capitalization of $1.36 billion.
• Institutional investors hold 97.97% of the company’s stock, with notable increases in positions from several funds during the second quarter.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) posted its earnings results on Wednesday. The business services provider reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.02, Zacks reports. Healthcare Services Group had a return on equity of 11.74% and a net margin of 0.61%.During the same period last year, the business earned $0.19 EPS. Healthcare Services Group's quarterly revenue was up 8.5% compared to the same quarter last year.

Healthcare Services Group Trading Up 13.6%

Shares of HCSG opened at $18.83 on Wednesday. Healthcare Services Group has a twelve month low of $9.13 and a twelve month high of $18.05. The firm has a market capitalization of $1.36 billion, a P/E ratio of 134.01 and a beta of 0.70. The stock's fifty day simple moving average is $15.91 and its 200 day simple moving average is $14.34.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Robert W. Baird boosted 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 note on Thursday, July 24th. Wall Street Zen downgraded shares of Healthcare Services Group from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 26th. Macquarie raised shares of Healthcare Services Group from a "neutral" rating to an "outperform" rating and lifted their target price for the stock from $15.00 to $16.00 in a research note on Tuesday, July 29th. Zacks Research lowered Healthcare Services Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 30th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Healthcare Services Group in a report on Wednesday, October 8th. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $16.25.

Insider Buying and Selling

In other news, EVP John Christopher Shea sold 21,368 shares of the firm's stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $13.25, for a total value of $283,126.00. Following the transaction, the executive vice president directly owned 32,976 shares in the company, valued at $436,932. This trade represents a 39.32% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 2.10% of the stock is owned by corporate insiders.

Institutional Trading of Healthcare Services Group

Hedge funds and other institutional investors have recently made changes to their positions in the stock. State of Wyoming bought a new position in Healthcare Services Group during the second quarter worth $236,000. Caxton Associates LLP acquired a new position in shares of Healthcare Services Group during the second quarter valued at $163,000. Public Sector Pension Investment Board lifted its holdings in Healthcare Services Group by 6.7% in the second quarter. Public Sector Pension Investment Board now owns 248,636 shares of the business services provider's stock worth $3,737,000 after purchasing an additional 15,602 shares during the period. 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 buying an additional 8,795 shares in the last quarter. Finally, State of Tennessee Department of Treasury increased its stake in Healthcare Services Group by 77.1% during the 2nd quarter. State of Tennessee Department of Treasury now owns 31,949 shares of the business services provider's stock valued at $480,000 after buying an additional 13,907 shares during the period. Institutional investors 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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