Healthcare Services Group (NASDAQ:HCSG) Shares Gap Down on Disappointing Earnings

Healthcare Services Group, Inc. (NASDAQ:HCSG)’s stock price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $10.91, but opened at $10.02. Healthcare Services Group shares last traded at $10.51, with a volume of 97,654 shares.

The business services provider reported $0.16 earnings per share for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.04). Healthcare Services Group had a return on equity of 12.59% and a net margin of 2.95%.

Analysts Set New Price Targets

HCSG has been the subject of a number of research analyst reports. Macquarie initiated coverage on Healthcare Services Group in a report on Monday, December 16th. They set a “neutral” rating and a $13.00 price objective for the company. Robert W. Baird dropped their price objective on Healthcare Services Group from $14.00 to $12.00 and set a “neutral” rating for the company in a report on Thursday, October 24th. StockNews.com upgraded Healthcare Services Group from a “hold” rating to a “buy” rating in a report on Tuesday. Finally, Benchmark restated a “buy” rating and set a $17.00 price objective on shares of Healthcare Services Group in a research note on Thursday, December 19th. Three equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to MarketBeat.com, Healthcare Services Group has an average rating of “Moderate Buy” and a consensus price target of $13.80.

Hedge Funds Weigh In On Healthcare Services Group

Several institutional investors and hedge funds have recently made changes to their positions in the business. GAMMA Investing LLC boosted its stake in shares of Healthcare Services Group by 100.8% during the 4th quarter. GAMMA Investing LLC now owns 2,137 shares of the business services provider’s stock valued at $25,000 after buying an additional 1,073 shares during the last quarter. Tidal Investments LLC boosted its stake in shares of Healthcare Services Group by 1.7% during the 3rd quarter. Tidal Investments LLC now owns 78,218 shares of the business services provider’s stock valued at $874,000 after buying an additional 1,276 shares during the last quarter. The Manufacturers Life Insurance Company boosted its stake in shares of Healthcare Services Group by 4.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 28,368 shares of the business services provider’s stock valued at $300,000 after buying an additional 1,311 shares during the last quarter. Confluence Investment Management LLC boosted its stake in shares of Healthcare Services Group by 1.1% during the 4th quarter. Confluence Investment Management LLC now owns 168,841 shares of the business services provider’s stock valued at $1,961,000 after buying an additional 1,897 shares during the last quarter. Finally, SBI Securities Co. Ltd. purchased a new position in shares of Healthcare Services Group during the 4th quarter valued at approximately $25,000. 97.97% of the stock is currently owned by hedge funds and other institutional investors.

Healthcare Services Group Stock Performance

The company has a market capitalization of $767.72 million, a PE ratio of 15.18 and a beta of 0.56. The company has a 50 day moving average price of $11.64 and a 200 day moving average price of $11.24.

About Healthcare Services Group

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.