Healthcare Services Group (NASDAQ:HCSG) Reaches New 12-Month High - What's Next?

Key Points

• Healthcare Services Group (NASDAQ:HCSG) reached a new 12-month high, trading at $16.83, after an increase in stock value attributed to upgrades in analyst ratings.
• Recent earnings reports showed HCSG had a revenue of $458.50 million for the quarter, surpassing expectations and marking a 7.6% increase compared to the previous year.
• Institutional investors control 97.97% of HCSG's stock, with significant increases in holdings by several firms in the second quarter, reflecting confidence in the company's prospects.

Healthcare Services Group, Inc. (NASDAQ:HCSG - Get Free Report) reached a new 52-week high during trading on Tuesday . The stock traded as high as $16.83 and last traded at $16.78, with a volume of 96726 shares changing hands. The stock had previously closed at $16.49.

Wall Street Analysts Forecast Growth

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 boosted their target price for the stock from $15.00 to $16.00 in a report on Tuesday, July 29th. Zacks Research upgraded shares of Healthcare Services Group to a "strong-buy" rating in a research note on Tuesday, August 12th. Benchmark upped their price objective on Healthcare Services Group from $17.00 to $19.00 and gave the company a "buy" rating in a research note on Thursday, July 24th. 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 report on Thursday, July 24th. Finally, Wall Street Zen downgraded Healthcare Services Group from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 26th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of $16.25.

Healthcare Services Group Stock Up 0.9%

The company's 50 day moving average is $15.12 and its 200 day moving average is $13.73. The firm has a market capitalization of $1.21 billion, a price-to-earnings ratio of 118.74 and a beta of 0.66.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The business services provider reported $0.21 earnings per share (EPS) for the quarter, topping 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 quarter in the prior year, the business posted $0.20 EPS. The business's revenue was up 7.6% compared to the same quarter last year. Healthcare Services Group has set its Q3 2025 guidance at EPS. On average, analysts expect that Healthcare Services Group, Inc. will post 0.74 EPS for the current year.

Insider Activity at Healthcare Services Group

In other 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 completion of the sale, the executive vice president owned 32,976 shares of the company's stock, valued at approximately $436,932. This represents a 39.32% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 2.10% of the company's stock.

Institutional Trading of Healthcare Services Group

Large investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC boosted 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 purchasing an additional 1,356 shares in the last quarter. USA Financial Formulas acquired a new position in Healthcare Services Group in the 2nd quarter worth about $60,000. US Bancorp DE boosted its stake in shares of Healthcare Services Group by 161.4% during the first quarter. US Bancorp DE now owns 8,097 shares of the business services provider's stock valued at $82,000 after purchasing an additional 5,000 shares in the last quarter. Tower Research Capital LLC TRC increased its stake in shares of Healthcare Services Group by 600.8% in the second 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 during the period. Finally, Los Angeles Capital Management LLC bought a new stake in Healthcare Services Group during the 2nd quarter worth approximately $156,000. 97.97% of the stock is owned by institutional investors and hedge funds.

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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