Healthcare Services Group (NASDAQ:HCSG) Releases Earnings Results, Beats Estimates By $0.15 EPS

Key Points

• Healthcare Services Group reported $0.37 EPS, beating estimates by $0.15, while revenue of $462.8M missed expectations and rose 3.4% year-over-year.
• Shares jumped about 16.8%, opening at $22.61 and trading near a 52-week high of $22.98, with a market cap around $1.56B and a P/E near 27.6.
• Company insiders sold large blocks recently (146,962 shares worth ~$3.01M), leaving insiders with roughly 2.1% ownership while institutional investors hold about 98% of the stock.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) issued its quarterly earnings results on Wednesday. The business services provider reported $0.37 earnings per share for the quarter, topping analysts' consensus estimates of $0.22 by $0.15, FiscalAI reports. The firm had revenue of $462.77 million for the quarter, compared to analysts' expectations of $479.79 million. Healthcare Services Group had a return on equity of 16.04% and a net margin of 3.21%.Healthcare Services Group's revenue was up 3.4% on a year-over-year basis. During the same quarter last year, the business posted $0.23 EPS.

Healthcare Services Group Trading Up 16.8%

Shares of Healthcare Services Group stock opened at $22.61 on Wednesday. Healthcare Services Group has a 1 year low of $10.86 and a 1 year high of $22.98. The company has a market cap of $1.56 billion, a P/E ratio of 27.57 and a beta of 0.80. The stock has a 50-day moving average price of $19.95 and a 200 day moving average price of $18.94.

Insider Buying and Selling at Healthcare Services Group

In related news, EVP John Christopher Shea sold 54,357 shares of the firm's stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $20.41, for a total transaction of $1,109,426.37. Following the completion of the sale, the executive vice president directly owned 29,292 shares in the company, valued at approximately $597,849.72. This trade represents a 64.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Patrick J. Orr sold 45,500 shares of the business's stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $20.54, for a total transaction of $934,570.00. Following the transaction, the executive vice president directly owned 44,615 shares in the company, valued at $916,392.10. The trade was a 50.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 146,962 shares of company stock valued at $3,014,100 in the last 90 days. 2.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Healthcare Services Group

Institutional investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd acquired a new position in shares of Healthcare Services Group in the fourth quarter worth $33,000. EverSource Wealth Advisors LLC raised its holdings in shares of Healthcare Services Group by 163.4% during the second quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the business services provider's stock worth $33,000 after acquiring an additional 1,356 shares in the last quarter. Tower Research Capital LLC TRC boosted its position in Healthcare Services Group by 600.8% during 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 purchasing an additional 8,795 shares during the last quarter. PharVision Advisers LLC purchased a new position in Healthcare Services Group in the third quarter valued at about $176,000. Finally, Caxton Associates LLP purchased a new position in Healthcare Services Group in the second quarter valued at about $163,000. Institutional investors and hedge funds own 97.97% of the company's stock.

Analysts Set New Price Targets

A number of analysts have commented on HCSG shares. Royal Bank Of Canada initiated coverage on shares of Healthcare Services Group in a research note on Tuesday, March 3rd. They set a "sector perform" rating and a $22.00 price objective for the company. BMO Capital Markets restated a "market perform" rating and set a $22.00 price target on shares of Healthcare Services Group in a report on Thursday, February 12th. Benchmark restated a "buy" rating on shares of Healthcare Services Group in a research report on Thursday, February 12th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Healthcare Services Group in a research note on Monday, December 29th. Finally, William Blair upgraded shares of Healthcare Services Group from a "market perform" rating to an "outperform" rating in a research report on Friday, February 20th. Four analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $22.00.

About Healthcare Services Group

Healthcare Services Group, Inc NASDAQ: HCSG is a leading provider of support services to healthcare facilities across the United States. The company specializes in environmental services, including housekeeping and sanitation, as well as linen and laundry management. In addition, Healthcare Services Group offers dietary and nutrition services, catering to hospitals, skilled nursing facilities, assisted living communities and other long-term care providers.

Founded as a family-owned business in the late 1970s, the company completed its initial public offering in 1997.

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