Healthcare Services Group (NASDAQ:HCSG) Hits New 52-Week High - What's Next?

Key Points

• Healthcare Services Group shares reached a new 52-week high, trading as high as $25.79 and gaining 5.1%, while the stock’s consensus analyst rating remained “Moderate Buy” with a $26.67 price target.
• The company exceeded quarterly earnings expectations, reporting $0.36 in EPS versus the $0.24 consensus, though revenue of $479.6 million came in slightly below estimates.
• Insiders sold shares, including sizable reductions by the COO and an executive vice president, while institutional investors and hedge funds owned approximately 97.97% of outstanding shares.

Healthcare Services Group, Inc. (NASDAQ:HCSG - Get Free Report)'s share price hit a new 52-week high on Monday. The stock traded as high as $25.79 and last traded at $25.76, with a volume of 670,122 shares. The stock had previously closed at $24.52.

Analyst Upgrades and Downgrades

HCSG has been the subject of a number of analyst reports. Oppenheimer assumed coverage on Healthcare Services Group in a research report on Wednesday, August 19th. They issued an "outperform" rating and a $28.00 price target for the company. UBS Group boosted their price objective on Healthcare Services Group from $27.00 to $30.00 and gave the stock a "buy" rating in a research note on Wednesday, July 8th. Wall Street Zen cut Healthcare Services Group from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Zacks Research raised Healthcare Services Group from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, October 28th. Finally, Robert W. Baird reduced their price target on Healthcare Services Group from $26.00 to $24.00 and set a "neutral" rating on the stock in a report on Thursday, October 8th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $26.67.

Healthcare Services Group Trading Up 5.1%

The firm has a market cap of $1.74 billion, a price-to-earnings ratio of 17.29 and a beta of 0.91. The stock's fifty day moving average price is $21.97 and its 200-day moving average price is $21.38.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The business services provider reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.12. The company had revenue of $479.60 million during the quarter, compared to analyst estimates of $480.80 million. Healthcare Services Group had a return on equity of 20.22% and a net margin of 5.58%. During the same period in the prior year, the business posted $0.59 earnings per share. Analysts predict that Healthcare Services Group, Inc. will post 1.32 earnings per share for the current year.

Insider Transactions at Healthcare Services Group

In related news, COO Andrew Kush sold 15,598 shares of Healthcare Services Group stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $23.24, for a total value of $362,497.52. Following the completion of the sale, the chief operating officer owned 22,741 shares in the company, valued at approximately $528,500.84. This trade represents a 40.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Jason J. Bundick sold 18,239 shares of the company's stock in a transaction on Monday, October 26th. The stock was sold at an average price of $25.11, for a total value of $457,981.29. Following the transaction, the executive vice president owned 17,125 shares in the company, valued at $430,008.75. This trade represents a 51.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Healthcare Services Group

Several institutional investors have recently bought and sold shares of HCSG. Nykredit A S acquired a new position in shares of Healthcare Services Group in the second quarter valued at approximately $28,000. KBC Group NV purchased a new stake in Healthcare Services Group during the 1st quarter worth approximately $35,000. Allworth Financial LP purchased a new stake in Healthcare Services Group during the 2nd quarter worth approximately $55,000. Public Employees Retirement System of Ohio acquired a new stake in Healthcare Services Group during the 2nd quarter worth approximately $66,000. Finally, Nisa Investment Advisors LLC lifted its holdings in Healthcare Services Group by 52.8% during the 3rd quarter. Nisa Investment Advisors LLC now owns 4,981 shares of the business services provider's stock worth $102,000 after buying an additional 1,722 shares in the last quarter. 97.97% of the stock is owned by institutional investors and hedge funds.

Healthcare Services Group Company Profile

Healthcare Services Group, Inc NASDAQ: HCSG provides outsourced support services to healthcare facilities in the United States. Its customers primarily include nursing homes, skilled nursing facilities, continuing care retirement communities, assisted-living facilities and other institutional healthcare providers.

The company's principal service offerings include housekeeping, laundry and linen services, as well as dining and nutritional services. These services are designed to help healthcare operators manage nonclinical functions, maintain facility standards and support the daily needs of residents and patients.

Healthcare Services Group was founded in 1976 and is headquartered in Bensalem, Pennsylvania.

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