Healthcare Services Group (NASDAQ:HCSG) Upgraded to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Healthcare Services Group (NASDAQ:HCSG) from a "hold" to a Buy, but the MarketBeat consensus still sits at Hold with a $22.00 price target (4 Buys, 5 Holds).
• HCSG beat expectations last quarter with $0.44 EPS versus $0.23 expected and revenue of $466.7M (up 6.6% year‑over‑year), and analysts forecast about $0.74 EPS for the current fiscal year.
• Insiders sold materially on Feb. 18 (total insider sales last quarter ~146,962 shares worth ~$3.01M), while institutional investors own roughly 97.97% of the company's stock.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Sunday.

Other research analysts also recently issued reports about the stock. Robert W. Baird set a $23.00 price target on shares of Healthcare Services Group in a research report on Thursday, February 12th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Healthcare Services Group in a research note on Monday, December 29th. UBS Group set a $25.00 target price on shares of Healthcare Services Group and gave the stock a "buy" rating in a report on Thursday, February 12th. Royal Bank Of Canada assumed coverage on Healthcare Services Group in a research note on Tuesday, March 3rd. They issued a "sector perform" rating and a $22.00 target price for the company. Finally, BMO Capital Markets reaffirmed a "market perform" rating and set a $22.00 target price on shares of Healthcare Services Group in a report on Thursday, February 12th. Four research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, Healthcare Services Group presently has a consensus rating of "Hold" and a consensus price target of $22.00.

Healthcare Services Group Trading Down 3.2%

HCSG stock opened at $18.49 on Friday. The stock's 50 day simple moving average is $19.99 and its 200 day simple moving average is $18.59. Healthcare Services Group has a 12-month low of $9.13 and a 12-month high of $22.98. The firm has a market cap of $1.30 billion, a P/E ratio of 22.55 and a beta of 0.73.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The business services provider reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.23 by $0.21. Healthcare Services Group had a net margin of 3.21% and a return on equity of 16.04%. The firm had revenue of $466.68 million during the quarter, compared to the consensus estimate of $467.24 million. During the same quarter in the previous year, the company posted $0.16 earnings per share. The firm's revenue was up 6.6% on a year-over-year basis. On average, research analysts forecast that Healthcare Services Group will post 0.74 EPS for the current fiscal year.

Insider Activity

In related news, EVP Patrick J. Orr sold 45,500 shares of Healthcare Services Group stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $20.54, for a total value of $934,570.00. Following the sale, the executive vice president directly owned 44,615 shares in the company, valued at $916,392.10. This trade represents a 50.49% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP John Christopher Shea sold 54,357 shares of Healthcare Services Group stock in a transaction dated 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 owned 29,292 shares in the company, valued at approximately $597,849.72. This represents a 64.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 146,962 shares of company stock valued at $3,014,100. 2.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Synergy Asset Management LLC acquired a new position in shares of Healthcare Services Group during the third quarter worth approximately $2,860,000. Allianz Asset Management GmbH increased its position in Healthcare Services Group by 229.4% in the 3rd quarter. Allianz Asset Management GmbH now owns 164,380 shares of the business services provider's stock valued at $2,767,000 after acquiring an additional 114,482 shares during the period. Allspring Global Investments Holdings LLC increased its position in Healthcare Services Group by 38.8% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 345,332 shares of the business services provider's stock valued at $5,812,000 after acquiring an additional 96,472 shares during the period. Bailard Inc. bought a new stake in Healthcare Services Group during the 3rd quarter valued at $655,000. Finally, American Century Companies Inc. boosted its position in Healthcare Services Group by 183.0% during the 2nd quarter. American Century Companies Inc. now owns 1,278,993 shares of the business services provider's stock worth $19,223,000 after acquiring an additional 827,057 shares during the period. Institutional investors own 97.97% of the company's stock.

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.

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