Healthcare Services Group (NASDAQ:HCSG) Stock Crosses Above 200 Day Moving Average - Time to Sell?

Key Points

• Healthcare Services Group shares crossed above their 200-day moving average, reaching $22.13 before closing at $22.04, compared with a 200-day average of $21.63.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and a $26.50 price target; individual targets include $28 from Oppenheimer and $30 from UBS.
• The company beat quarterly earnings expectations, reporting $0.32 in EPS versus the $0.22 consensus, while institutional investors own 97.97% of outstanding shares; however, its COO recently sold 15,598 shares.

Healthcare Services Group, Inc. (NASDAQ:HCSG - Get Free Report) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $21.63 and traded as high as $22.13. Healthcare Services Group shares last traded at $22.04, with a volume of 482,623 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the stock. Wall Street Zen cut shares of Healthcare Services Group from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Weiss Ratings lowered shares of Healthcare Services Group from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, September 9th. Zacks Research raised shares of Healthcare Services Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 3rd. Oppenheimer started coverage on Healthcare Services Group in a report on Wednesday, August 19th. They set an "outperform" rating and a $28.00 target price for the company. Finally, UBS Group increased their target price on Healthcare Services Group from $27.00 to $30.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $26.50.

Healthcare Services Group Trading Up 0.3%

The stock has a market cap of $1.51 billion, a PE ratio of 12.81 and a beta of 0.80. The business's 50-day moving average price is $22.81 and its 200-day moving average price is $21.63.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The business services provider reported $0.32 EPS for the quarter, beating analysts' consensus estimates of $0.22 by $0.10. The company had revenue of $470.81 million during the quarter, compared to analysts' expectations of $471.22 million. Healthcare Services Group had a net margin of 6.59% and a return on equity of 18.97%. During the same quarter in the prior year, the company posted ($0.44) earnings per share. As a group, analysts predict that Healthcare Services Group, Inc. will post 1.14 earnings per share for the current year.

Insider Activity at Healthcare Services Group

In other news, COO Andrew Kush sold 15,598 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $23.24, for a total transaction 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 represents a 40.68% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Healthcare Services Group in the 2nd quarter valued at $279,379,000. Dimensional Fund Advisors LP lifted its position in Healthcare Services Group by 2.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,400,681 shares of the business services provider's stock worth $44,534,000 after acquiring an additional 62,689 shares during the period. California State Teachers Retirement System grew its stake in Healthcare Services Group by 2,295.8% during the 2nd quarter. California State Teachers Retirement System now owns 2,186,675 shares of the business services provider's stock valued at $53,705,000 after purchasing an additional 2,095,405 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of Healthcare Services Group by 454.0% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,405,952 shares of the business services provider's stock valued at $26,080,000 after purchasing an additional 1,152,176 shares during the period. Finally, Jupiter Topco LLC acquired a new position in shares of Healthcare Services Group in the second quarter valued at about $22,406,000. 97.97% of the stock is currently owned by hedge funds and other institutional investors.

About Healthcare Services Group

Healthcare Services Group, Inc NASDAQ: HCSG provides outsourced support services to healthcare and senior living facilities across the United States. Its primary customers include nursing homes, post-acute care centers, hospitals, assisted living communities and other healthcare-related facilities.

The company operates through two principal service areas. Its environmental services business provides housekeeping, laundry and linen management, waste handling and related services. Its dietary services business supports food procurement, meal preparation, dining operations and nutrition-related programs for residents and patients.

Healthcare Services Group was founded in 1976 and has historically focused on helping healthcare providers manage nonclinical operations through contract-based services.

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