Zacks Research Upgrades Healthcare Services Group (NASDAQ:HCSG) to “Strong-Buy”

Healthcare Services Group (NASDAQ:HCSG) was upgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Wednesday, Zacks reports.

A number of other analysts also recently weighed in on the company. Oppenheimer began coverage on Healthcare Services Group in a research report on Wednesday, August 19th. They set an “outperform” rating and a $28.00 target price for the company. Robert W. Baird dropped their price target on Healthcare Services Group from $26.00 to $24.00 and set a “neutral” rating for the company in a research note on Thursday, October 8th. Wall Street Zen downgraded Healthcare Services Group from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Weiss Ratings raised shares of Healthcare Services Group from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, September 25th. Finally, UBS Group increased their price objective on shares of Healthcare Services Group from $27.00 to $30.00 and gave the stock a “buy” rating in a research note on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $26.67.

Healthcare Services Group Trading Up 2.6%

Shares of NASDAQ HCSG opened at $24.68 on Wednesday. The firm has a market cap of $1.66 billion, a P/E ratio of 16.56 and a beta of 0.81. The business’s 50 day moving average is $21.94 and its 200-day moving average is $21.36. Healthcare Services Group has a 1-year low of $16.78 and a 1-year high of $25.75.

Healthcare Services Group (NASDAQ:HCSG) last posted its earnings results on Wednesday, October 21st. The business services provider reported $0.36 earnings per share for the quarter, topping analysts’ consensus estimates of $0.24 by $0.12. Healthcare Services Group had a return on equity of 20.22% and a net margin of 5.58%. The company had revenue of $479.60 million during the quarter, compared to the consensus estimate of $480.80 million. During the same quarter last year, the firm earned $0.59 earnings per share. Analysts forecast that Healthcare Services Group will post 1.32 EPS for the current year.

Insiders Place Their Bets

In other news, EVP Jason J. Bundick sold 18,239 shares of Healthcare Services Group 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 approximately $430,008.75. This trade represents a 51.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Andrew Kush sold 15,598 shares of the business’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $23.24, for a total value of $362,497.52. Following the transaction, the chief operating officer directly owned 22,741 shares of the company’s stock, valued at $528,500.84. This trade represents a 40.68% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in shares of Healthcare Services Group in the second quarter worth $279,379,000. Dimensional Fund Advisors LP raised 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 purchasing an additional 62,689 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in Healthcare Services Group by 454.0% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,405,952 shares of the business services provider’s stock worth $26,080,000 after purchasing an additional 1,152,176 shares during the last quarter. Jupiter Topco LLC acquired a new position in Healthcare Services Group during the 2nd quarter worth about $22,406,000. Finally, Palisade Capital Management LP acquired a new position in Healthcare Services Group during the 2nd quarter worth about $17,845,000. Institutional investors own 97.97% of the company’s stock.

About Healthcare Services Group

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.