Healthcare Services Group (NASDAQ:HCSG) Lowered to Hold Rating by Zacks Research

Key Points

• Healthcare Services Group (HCSG) has been downgraded from a "strong-buy" to a "hold" rating by Zacks Research, reflecting a change in analysts' outlook.
• Despite the downgrade, investment firms like Robert W. Baird and Macquarie have increased their target prices for HCSG, indicating a mixed sentiment among analysts.
• Recent earnings showed HCSG reported a higher-than-expected EPS of $0.21 and a revenue increase of 7.6% year-over-year, suggesting potential growth despite the rating change.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday,Zacks.com reports.

HCSG has been the subject of several other reports. Robert W. Baird boosted their target price on Healthcare Services Group from $13.00 to $15.00 and gave the stock a "neutral" rating in a research report on Thursday, July 24th. Macquarie upgraded Healthcare Services Group from a "neutral" rating to an "outperform" rating and boosted their target price for the stock from $15.00 to $16.00 in a research report on Tuesday, July 29th. Wall Street Zen cut Healthcare Services Group from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 26th. Finally, Benchmark boosted their target price on Healthcare Services Group from $17.00 to $19.00 and gave the stock a "buy" rating in a research report on Thursday, July 24th. Three investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $16.25.

Healthcare Services Group Stock Performance

NASDAQ:HCSG opened at $16.25 on Tuesday. Healthcare Services Group has a 52-week low of $9.13 and a 52-week high of $16.91. The business's fifty day moving average is $15.23 and its 200 day moving average is $13.76. The firm has a market cap of $1.18 billion, a price-to-earnings ratio of 116.07 and a beta of 0.70.

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

Insider Activity

In other news, EVP John Christopher Shea sold 21,368 shares of the company'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 completion of the transaction, the executive vice president directly owned 32,976 shares in the company, valued at approximately $436,932. This represents a 39.32% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 2.60% of the company's stock.

Institutional Investors Weigh In On Healthcare Services Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC lifted its stake in shares of Healthcare Services Group by 163.4% in the 2nd 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 during the last quarter. USA Financial Formulas purchased a new stake in Healthcare Services Group in the 2nd quarter worth approximately $60,000. US Bancorp DE lifted its holdings in Healthcare Services Group by 161.4% in the 1st quarter. US Bancorp DE now owns 8,097 shares of the business services provider's stock worth $82,000 after buying an additional 5,000 shares during the period. Martingale Asset Management L P purchased a new stake in Healthcare Services Group in the 1st quarter worth approximately $127,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in Healthcare Services Group by 45.3% in the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 14,592 shares of the business services provider's stock worth $147,000 after buying an additional 4,548 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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