Healthcare Services Group (NASDAQ:HCSG) Stock Price Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• Passed above its 200-day moving average: HCSG traded as high as $21.54 and last at $21.41—above the 200‑day MA of $19.19—on a volume of about 551,395 shares.
• Mixed fundamental/analyst signals: Q1 EPS beat at $0.37 vs $0.22 expected while revenue missed ($462.77M vs $479.79M); several firms raised targets and ratings recently but the MarketBeat consensus remains a Hold with a $24 price target.
• Insider selling and institutional concentration: Executives sold 146,962 shares (~$3.01M) in the past 90 days leaving insiders with 2.60% ownership, while institutional investors hold roughly 97.97% of the stock.

Healthcare Services Group, Inc. (NASDAQ:HCSG - Get Free Report)'s share price passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $19.19 and traded as high as $21.54. Healthcare Services Group shares last traded at $21.41, with a volume of 551,395 shares traded.

Analyst Ratings Changes

HCSG has been the subject of a number of analyst reports. Benchmark increased their price objective on Healthcare Services Group from $28.00 to $30.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. Wall Street Zen upgraded shares of Healthcare Services Group from a "hold" rating to a "buy" rating in a report on Sunday, March 29th. UBS Group increased their price target on shares of Healthcare Services Group from $25.00 to $27.00 and gave the company a "buy" rating in a research report on Thursday, April 23rd. Robert W. Baird set a $23.00 price target on shares of Healthcare Services Group in a report on Thursday, February 12th. Finally, BMO Capital Markets boosted their price objective on shares of Healthcare Services Group from $22.00 to $24.00 and gave the company a "market perform" rating in a research report on Thursday, April 23rd. Four equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $24.00.

Healthcare Services Group Stock Up 0.4%

The company has a market cap of $1.47 billion, a P/E ratio of 22.30 and a beta of 0.80. The business has a fifty day moving average of $20.05 and a 200 day moving average of $19.19.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The business services provider reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.15. The business had revenue of $462.77 million for the quarter, compared to analysts' expectations of $479.79 million. Healthcare Services Group had a net margin of 3.67% and a return on equity of 17.81%. The firm's revenue for the quarter was up 3.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.23 earnings per share. On average, sell-side analysts anticipate that Healthcare Services Group, Inc. will post 0.94 EPS for the current fiscal year.

Insider Activity

In related news, EVP Patrick J. Orr sold 44,615 shares of the stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $20.53, for a total value of $915,945.95. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP John Christopher Shea sold 54,357 shares of the firm's stock in a transaction dated Wednesday, February 18th. The stock was 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 owned 29,292 shares of the company's stock, valued at $597,849.72. This trade represents a 64.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 146,962 shares of company stock valued at $3,014,100. Corporate insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Miller Global Investments LLC bought a new stake in shares of Healthcare Services Group during the fourth quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd bought a new position in Healthcare Services Group in the fourth quarter worth $33,000. EverSource Wealth Advisors LLC raised its holdings in Healthcare Services Group by 163.4% in the second quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the business services provider's stock worth $33,000 after purchasing an additional 1,356 shares in the last quarter. Farther Finance Advisors LLC lifted its position in Healthcare Services Group by 32.0% during the fourth quarter. Farther Finance Advisors LLC now owns 3,619 shares of the business services provider's stock valued at $69,000 after buying an additional 877 shares during the period. Finally, GAMMA Investing LLC boosted its holdings in shares of Healthcare Services Group by 29.7% during the 4th quarter. GAMMA Investing LLC now owns 3,688 shares of the business services provider's stock valued at $71,000 after buying an additional 845 shares in the last quarter. Institutional investors own 97.97% of the company's stock.

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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