Healthcare Services Group (NASDAQ:HCSG) Cut to “Buy” at Wall Street Zen

Wall Street Zen lowered shares of Healthcare Services Group (NASDAQ:HCSG) from a strong-buy rating to a buy rating in a research note issued to investors on Sunday morning.

Several other brokerages have also weighed in on HCSG. William Blair upgraded shares of Healthcare Services Group from a “market perform” rating to an “outperform” rating in a report on Friday. Robert W. Baird set a $23.00 price target on Healthcare Services Group in a research note on Thursday, February 12th. UBS Group set a $25.00 price target on Healthcare Services Group and gave the stock a “buy” rating in a research report on Thursday, February 12th. BMO Capital Markets reiterated a “market perform” rating and issued a $22.00 price objective on shares of Healthcare Services Group in a report on Thursday, February 12th. Finally, Benchmark restated a “buy” rating 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 four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $22.00.

Healthcare Services Group Stock Up 2.8%

Shares of HCSG opened at $21.40 on Friday. The stock’s fifty day simple moving average is $19.52 and its 200-day simple moving average is $17.84. The firm has a market capitalization of $1.50 billion, a PE ratio of 26.10 and a beta of 0.75. Healthcare Services Group has a 12-month low of $9.13 and a 12-month high of $22.98.

Healthcare Services Group (NASDAQ:HCSG) last announced its quarterly earnings data on Wednesday, February 11th. The business services provider reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.21. Healthcare Services Group had a return on equity of 16.04% and a net margin of 3.21%.The firm had revenue of $466.68 million during the quarter, compared to analysts’ expectations of $467.24 million. During the same period in the previous year, the business posted $0.16 EPS. The company’s quarterly revenue was up 6.6% compared to the same quarter last year. Analysts anticipate that Healthcare Services Group will post 0.74 EPS for the current year.

Insider Transactions at Healthcare Services Group

In other news, EVP John Christopher Shea sold 54,357 shares of Healthcare Services Group 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 transaction, the executive vice president owned 29,292 shares in the company, valued at $597,849.72. The trade was a 64.98% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Patrick J. Orr sold 44,615 shares of the business’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $20.53, for a total value of $915,945.95. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 144,472 shares of company stock worth $2,959,942. 2.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Healthcare Services Group

Several large investors have recently made changes to their positions in HCSG. 8 Knots Management LLC bought a new stake in Healthcare Services Group in the 3rd quarter valued at $56,527,000. Arrowstreet Capital Limited Partnership raised its stake in shares of Healthcare Services Group by 240.1% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,496,835 shares of the business services provider’s stock valued at $22,497,000 after purchasing an additional 1,056,705 shares during the period. Ameriprise Financial Inc. lifted its holdings in shares of Healthcare Services Group by 80.2% in 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 purchasing an additional 882,213 shares in the last quarter. American Century Companies Inc. lifted its holdings in shares of Healthcare Services Group by 183.0% in the second quarter. American Century Companies Inc. now owns 1,278,993 shares of the business services provider’s stock valued at $19,223,000 after purchasing an additional 827,057 shares in the last quarter. Finally, CSM Advisors LLC acquired a new position in shares of Healthcare Services Group during the second quarter worth about $8,864,000. 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.