Healthcare Services Group (NASDAQ:HCSG) Hits New 1-Year High – Should You Buy?

Healthcare Services Group, Inc. (NASDAQ:HCSG)’s share price reached a new 52-week high on Monday. The company traded as high as $25.79 and last traded at $25.76, with a volume of 670,122 shares traded. The stock had previously closed at $24.52.

Wall Street Analysts Forecast Growth

HCSG has been the subject of a number of recent research reports. Wall Street Zen lowered Healthcare Services Group from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Oppenheimer started coverage on Healthcare Services Group in a research note on Wednesday, August 19th. They set an “outperform” rating and a $28.00 target price for the company. Robert W. Baird decreased their price objective 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. UBS Group lifted their price objective on Healthcare Services Group from $27.00 to $30.00 and gave the company a “buy” rating in a research note on Wednesday, July 8th. Finally, Weiss Ratings raised Healthcare Services Group from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, September 25th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $26.67.

Healthcare Services Group Trading Up 5.1%

The stock’s fifty day moving average price is $21.97 and its two-hundred day moving average price is $21.38. The firm has a market capitalization of $1.74 billion, a price-to-earnings ratio of 17.29 and a beta of 0.91.

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

Insiders Place Their Bets

In other Healthcare Services Group news, COO Andrew Kush sold 15,598 shares of Healthcare Services Group stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $23.24, for a total transaction of $362,497.52. Following the completion of the sale, the chief operating officer directly owned 22,741 shares of the company’s stock, valued at $528,500.84. The trade was a 40.68% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Jason J. Bundick sold 18,239 shares of the company’s stock in a transaction dated 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 directly owned 17,125 shares of the company’s stock, valued at approximately $430,008.75. This represents a 51.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Healthcare Services Group

Several institutional investors have recently added to or reduced their stakes in the business. Bridge City Capital LLC raised its holdings in Healthcare Services Group by 21.3% during the third quarter. Bridge City Capital LLC now owns 169,640 shares of the business services provider’s stock worth $3,469,000 after purchasing an additional 29,788 shares in the last quarter. State of Wyoming boosted its holdings in shares of Healthcare Services Group by 22.0% in the 3rd quarter. State of Wyoming now owns 18,148 shares of the business services provider’s stock valued at $371,000 after buying an additional 3,276 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its holdings in shares of Healthcare Services Group by 11.1% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 24,100 shares of the business services provider’s stock valued at $493,000 after buying an additional 2,400 shares in the last quarter. Sterling Capital Management LLC grew its position in shares of Healthcare Services Group by 6.5% in the 3rd quarter. Sterling Capital Management LLC now owns 16,358 shares of the business services provider’s stock valued at $335,000 after buying an additional 1,002 shares during the last quarter. Finally, Nisa Investment Advisors LLC grew its position in shares of Healthcare Services Group by 52.8% in the 3rd quarter. Nisa Investment Advisors LLC now owns 4,981 shares of the business services provider’s stock valued at $102,000 after buying an additional 1,722 shares during the last quarter. Hedge funds and other 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.