Healthcare Services Group (NASDAQ:HCSG) Sets New 52-Week High - Time to Buy?

Key Points

• Healthcare Services Group (NASDAQ:HCSG) reached a new 52-week high of $16.59, closing at $16.58 with increased trading volume.
• Analysts have mixed ratings for HCSG, with one strong buy, three buy, and one hold, while target prices range from $15.00 to $19.00.
• The company reported Q2 earnings of $0.21 per share, beating estimates and showing a 7.6% year-over-year revenue increase to $458.5 million.

Healthcare Services Group, Inc. (NASDAQ:HCSG - Get Free Report) hit a new 52-week high on Wednesday . The company traded as high as $16.59 and last traded at $16.58, with a volume of 877133 shares trading hands. The stock had previously closed at $16.03.

Analyst Upgrades and Downgrades

HCSG has been the topic of a number of recent research reports. Wall Street Zen lowered Healthcare Services Group from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 26th. Benchmark boosted their target price on Healthcare Services Group from $17.00 to $19.00 and gave the company a "buy" rating in a report on Thursday, July 24th. Robert W. Baird boosted their target price on Healthcare Services Group from $13.00 to $15.00 and gave the company a "neutral" rating in a report on Thursday, July 24th. Zacks Research raised Healthcare Services Group to a "strong-buy" rating in a report on Tuesday, August 12th. Finally, Macquarie raised Healthcare Services Group from a "neutral" rating to an "outperform" rating and boosted their target price for the company from $15.00 to $16.00 in a report on Tuesday, July 29th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, Healthcare Services Group has an average rating of "Buy" and an average price target of $16.25.

Healthcare Services Group Stock Up 3.4%

The company has a market cap of $1.20 billion, a price-to-earnings ratio of 118.43 and a beta of 0.66. The company has a fifty day simple moving average of $14.84 and a two-hundred day simple moving average of $13.55.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The business services provider reported $0.21 earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to the consensus estimate of $450.78 million. During the same period in the prior year, the business earned $0.20 earnings per share. The business's revenue was up 7.6% on a year-over-year basis. Healthcare Services Group has set its Q3 2025 guidance at EPS. On average, research analysts predict that Healthcare Services Group, Inc. will post 0.74 EPS for the current year.

Insiders Place Their Bets

In related news, EVP John Christopher Shea sold 21,368 shares of the stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $13.25, for a total transaction of $283,126.00. Following 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Healthcare Services Group

Several large investors have recently added to or reduced their stakes in the business. Allspring Global Investments Holdings LLC raised its holdings in shares of Healthcare Services Group by 1,152.0% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 166,643 shares of the business services provider's stock worth $1,680,000 after purchasing an additional 153,333 shares during the period. American Century Companies Inc. grew its stake in 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 valued at $4,556,000 after purchasing an additional 296,159 shares in the last quarter. Mackenzie Financial Corp grew its stake in 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 valued at $41,620,000 after purchasing an additional 34,037 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in Healthcare Services Group during the 1st quarter valued at approximately $1,121,000. Finally, Palisade Capital Management LP lifted its holdings in 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 buying an additional 20,720 shares during the last quarter. 97.97% of the stock is currently owned by hedge funds and other institutional investors.

Healthcare Services Group Company Profile

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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