Healthcare Services Group (NASDAQ:HCSG) Upgraded by Zacks Research to Strong-Buy Rating

Key Points

• Zacks Research upgraded HCSG from a "hold" to a "strong-buy."
• Multiple analysts (UBS, Benchmark, BMO, William Blair, RBC) recently raised price targets or ratings, and MarketBeat's consensus is a "Moderate Buy" with a $24.00 consensus price target.
• Healthcare Services Group beat quarterly EPS estimates ($0.37 vs. $0.22) while revenue missed ($462.8M vs. $479.8M), insiders sold about 146,962 shares worth ~$3.01M, and institutional investors own roughly 98% of the stock.

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

Several other research firms also recently weighed in on HCSG. BMO Capital Markets lifted their price target on shares of Healthcare Services Group from $22.00 to $24.00 and gave the company a "market perform" rating in a research note on Thursday, April 23rd. UBS Group raised their price objective on Healthcare Services Group from $25.00 to $27.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. William Blair raised Healthcare Services Group from a "market perform" rating to an "outperform" rating in a research report on Friday, February 20th. Benchmark upped their target price on Healthcare Services Group from $28.00 to $30.00 and gave the stock a "buy" rating in a report on Thursday, April 23rd. Finally, Royal Bank Of Canada increased their price target on Healthcare Services Group from $22.00 to $24.00 and gave the stock a "sector perform" rating in a research report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $24.00.

Healthcare Services Group Trading Up 2.9%

Shares of HCSG opened at $21.73 on Monday. The firm has a fifty day moving average price of $20.07 and a 200-day moving average price of $19.27. The firm has a market capitalization of $1.49 billion, a P/E ratio of 22.64 and a beta of 0.85. Healthcare Services Group has a 12-month low of $12.66 and a 12-month high of $24.39.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The business services provider reported $0.37 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.15. The company had revenue of $462.77 million during the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter last year, the business posted $0.23 EPS. Analysts predict that Healthcare Services Group will post 1.01 earnings per share for the current year.

Insiders Place Their Bets

In other news, EVP Patrick J. Orr sold 44,615 shares of the business's stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $20.53, for a total value of $915,945.95. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP John Christopher Shea sold 54,357 shares of the business's stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $20.41, for a total value of $1,109,426.37. Following the completion of the transaction, the executive vice president directly owned 29,292 shares of the company's stock, valued at approximately $597,849.72. The trade was a 64.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 146,962 shares of company stock worth $3,014,100 over the last 90 days. Company insiders own 2.90% of the company's stock.

Institutional Trading of Healthcare Services Group

A number of institutional investors have recently modified their holdings of HCSG. 8 Knots Management LLC bought a new position in shares of Healthcare Services Group during the 3rd quarter worth approximately $56,527,000. Ameriprise Financial Inc. lifted its position in Healthcare Services Group by 80.2% during the third quarter. Ameriprise Financial Inc. now owns 1,981,840 shares of the business services provider's stock valued at $33,354,000 after acquiring an additional 882,213 shares during the last quarter. American Century Companies Inc. boosted its stake in Healthcare Services Group by 38.1% in the third quarter. American Century Companies Inc. now owns 1,766,601 shares of the business services provider's stock valued at $29,732,000 after acquiring an additional 487,608 shares in the last quarter. Qube Research & Technologies Ltd grew its holdings in Healthcare Services Group by 1,116.3% in the second quarter. Qube Research & Technologies Ltd now owns 448,806 shares of the business services provider's stock worth $6,746,000 after purchasing an additional 411,908 shares during the last quarter. Finally, Towle & Co. purchased a new position in Healthcare Services Group in the fourth quarter worth $7,396,000. 97.97% of the stock is currently owned by institutional investors.

Healthcare Services Group Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.