Healthcare Services Group (NASDAQ:HCSG) Lowered to Buy Rating by Wall Street Zen

Wall Street Zen downgraded shares of Healthcare Services Group (NASDAQ:HCSG) from a strong-buy rating to a buy rating in a report issued on Sunday.

Other equities research analysts have also issued research reports about the stock. UBS Group set a $25.00 price target on shares of Healthcare Services Group and gave the stock a “buy” rating in a research note on Thursday, February 12th. Robert W. Baird set a $23.00 price objective on Healthcare Services Group in a report on Thursday, February 12th. Macquarie Infrastructure reissued a “buy” rating on shares of Healthcare Services Group in a research report on Wednesday, November 26th. BMO Capital Markets reaffirmed a “market perform” rating and set a $22.00 price target on shares of Healthcare Services Group in a research report on Thursday, February 12th. Finally, William Blair raised Healthcare Services Group from a “market perform” rating to an “outperform” rating in a report on Friday. Four analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $22.00.

Healthcare Services Group Price Performance

Shares of NASDAQ:HCSG opened at $20.64 on Friday. Healthcare Services Group has a 1 year low of $9.13 and a 1 year high of $22.98. The company has a market capitalization of $1.45 billion, a PE ratio of 25.17 and a beta of 0.75. The business has a fifty day moving average price of $19.45 and a two-hundred day moving average price of $17.74.

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

Insider Transactions at Healthcare Services Group

In other news, EVP Patrick J. Orr sold 45,500 shares of the company’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $20.54, for a total transaction of $934,570.00. Following the sale, the executive vice president directly owned 44,615 shares in the company, valued at $916,392.10. This represents a 50.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP John Christopher Shea sold 54,357 shares of the 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 completion of the sale, the executive vice president directly owned 29,292 shares in the company, valued at approximately $597,849.72. The trade was a 64.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 144,472 shares of company stock valued at $2,959,942 in the last ninety days. Insiders own 2.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Miller Global Investments LLC purchased a new position in Healthcare Services Group during the fourth quarter worth about $26,000. EverSource Wealth Advisors LLC boosted its position in shares of Healthcare Services Group by 163.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the business services provider’s stock valued at $33,000 after acquiring an additional 1,356 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in shares of Healthcare Services Group during the 4th quarter valued at about $33,000. GAMMA Investing LLC grew its holdings in shares of Healthcare Services Group by 94.9% during the third quarter. GAMMA Investing LLC now owns 2,843 shares of the business services provider’s stock worth $48,000 after purchasing an additional 1,384 shares in the last quarter. Finally, Farther Finance Advisors LLC increased its position in shares of Healthcare Services Group by 32.0% in the fourth quarter. Farther Finance Advisors LLC now owns 3,619 shares of the business services provider’s stock worth $69,000 after purchasing an additional 877 shares during the last quarter. Institutional investors own 97.97% of the company’s stock.

Healthcare Services Group News Roundup

Here are the key news stories impacting Healthcare Services Group this week:

• Positive Sentiment: Q4 results showed an earnings beat and revenue growth — the company reported $0.44 EPS vs. consensus $0.23 and revenue rose ~6.6% year‑over‑year, which supports the bullish case. MarketBeat: HCSG profile and earnings summary
• Positive Sentiment: Institutional buying: several funds increased or initiated positions in HCSG in Q4, and institutions own a very large share of the float (~98%), which can stabilize the stock and support longer‑term demand. MarketBeat: institutional holdings
• Positive Sentiment: Retail/insider buy: Theodore Wahl purchased roughly $178K of HCSG shares, a small but supportive insider buy. Benzinga: Theodore Wahl buy
• Neutral Sentiment: An EVP (Chief Revenue Officer) exercised options worth ~$282K — option exercises are common and can be neutral (could signal confidence or simply scheduled compensation). Benzinga: options exercise
• Neutral Sentiment: Short‑interest reports for mid‑February show “0” shares / 0 days to cover and NaN changes — this is almost certainly a data/reporting error and should not be interpreted as meaningful market pressure.
• Negative Sentiment: Large insider selloffs: EVP Patrick J. Orr sold ~45,500 shares (~$0.9M) and reduced his holding by ~50%, disclosed on Form 4. Significant insider trimming at current prices can be read negatively by investors. SEC Form 4: Patrick J. Orr sale
• Negative Sentiment: Another senior executive, EVP John Christopher Shea, sold ~54,357 shares (~$1.1M) and trimmed his stake by ~65%, adding to the negative signal from insider sales. SEC Form 4: John Christopher Shea sale

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.