Healthcare Services Group (NASDAQ:HCSG) Shares Gap Up on Strong Earnings

Healthcare Services Group, Inc. (NASDAQ:HCSG) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $11.95, but opened at $12.44. Healthcare Services Group shares last traded at $11.36, with a volume of 143,063 shares changing hands.

The business services provider reported $0.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.18 by $0.04. The company had revenue of $423.40 million during the quarter, compared to analysts’ expectations of $424.91 million. Healthcare Services Group had a net margin of 2.44% and a return on equity of 11.44%. The business’s quarterly revenue was up 1.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.17 earnings per share.

Analyst Upgrades and Downgrades

HCSG has been the topic of several recent analyst reports. Robert W. Baird lifted their price target on Healthcare Services Group from $10.00 to $13.00 and gave the stock a “neutral” rating in a research report on Thursday, February 15th. Benchmark upped their target price on shares of Healthcare Services Group from $16.00 to $17.00 and gave the company a “buy” rating in a research note on Thursday, February 15th. Royal Bank of Canada raised their price target on shares of Healthcare Services Group from $14.00 to $15.00 and gave the stock an “outperform” rating in a research report on Thursday, February 15th. UBS Group upped their price objective on shares of Healthcare Services Group from $11.00 to $13.00 and gave the company a “neutral” rating in a research report on Thursday, February 15th. Finally, StockNews.com raised Healthcare Services Group from a “sell” rating to a “hold” rating in a research report on Thursday, February 22nd. Three equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat, Healthcare Services Group presently has a consensus rating of “Hold” and an average price target of $14.50.

Institutional Investors Weigh In On Healthcare Services Group

A number of institutional investors have recently bought and sold shares of HCSG. Financial Management Professionals Inc. acquired a new position in shares of Healthcare Services Group in the 1st quarter valued at $55,000. PNC Financial Services Group Inc. lifted its stake in Healthcare Services Group by 38.3% during the fourth quarter. PNC Financial Services Group Inc. now owns 6,186 shares of the business services provider’s stock worth $64,000 after purchasing an additional 1,714 shares during the period. CWM LLC boosted its holdings in Healthcare Services Group by 173.4% during the third quarter. CWM LLC now owns 10,209 shares of the business services provider’s stock valued at $106,000 after purchasing an additional 6,475 shares in the last quarter. Corton Capital Inc. bought a new stake in shares of Healthcare Services Group in the 3rd quarter valued at approximately $129,000. Finally, Victory Capital Management Inc. raised its holdings in shares of Healthcare Services Group by 14.0% in the 4th quarter. Victory Capital Management Inc. now owns 14,586 shares of the business services provider’s stock worth $151,000 after buying an additional 1,795 shares in the last quarter. Institutional investors and hedge funds own 97.97% of the company’s stock.

Healthcare Services Group Stock Performance

The company has a 50-day moving average of $12.23 and a 200 day moving average of $10.72. The firm has a market cap of $810.04 million, a P/E ratio of 19.30 and a beta of 0.49.

Healthcare Services Group Company Profile

Healthcare Services Group, Inc provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary.