Healthcare Services Group (NASDAQ:HCSG) Hits New 12-Month High After Earnings Beat

Key Points

• Healthcare Services Group shares reached a new 52-week high of $20.00 after reporting quarterly earnings of $0.23 per share, exceeding analysts' expectations of $0.21.
• The company's revenue increased by 8.5% year-over-year, and it has an average target price of $16.25 from analysts.
• Recent insider transactions saw EVP John Christopher Shea selling 21,368 shares, reducing his ownership position by 39.32% amidst ongoing stock interest from institutional investors.

Healthcare Services Group, Inc. (NASDAQ:HCSG - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $20.00 and last traded at $18.45, with a volume of 348416 shares trading hands. The stock had previously closed at $16.57.

The business services provider reported $0.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.21 by $0.02. Healthcare Services Group had a net margin of 0.61% and a return on equity of 11.74%. The company's revenue for the quarter was up 8.5% on a year-over-year basis. During the same quarter last year, the company earned $0.19 earnings per share. Healthcare Services Group has set its Q4 2025 guidance at EPS.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Zacks Research downgraded shares of Healthcare Services Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 30th. Macquarie raised shares of Healthcare Services Group from a "neutral" rating to an "outperform" rating and increased their price target for the stock from $15.00 to $16.00 in a research note on Tuesday, July 29th. Robert W. Baird increased their price target on shares of Healthcare Services Group from $13.00 to $15.00 and gave the stock 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. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Healthcare Services Group in a research note on Wednesday, October 8th. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $16.25.

Insider Transactions at Healthcare Services Group

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC lifted its holdings in shares of 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 buying an additional 153,333 shares during the period. American Century Companies Inc. boosted its stake in shares of 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 worth $4,556,000 after acquiring an additional 296,159 shares during the last quarter. Mackenzie Financial Corp boosted its stake in shares of 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 worth $41,620,000 after acquiring an additional 34,037 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in shares of Healthcare Services Group during the 1st quarter worth $1,121,000. Finally, Palisade Capital Management LP boosted its stake in shares of 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 worth $22,558,000 after acquiring an additional 20,720 shares during the last quarter. Institutional investors own 97.97% of the company's stock.

Healthcare Services Group Trading Up 10.9%

The company's 50 day moving average price is $15.91 and its two-hundred day moving average price is $14.34. The firm has a market cap of $1.33 billion, a PE ratio of 131.14 and a beta of 0.70.

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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