Healthcare Services Group, Inc. (NASDAQ:HCSG) to Issue Dividend Increase – $0.21 Per Share

Healthcare Services Group, Inc. (NASDAQ:HCSGGet Rating) declared a quarterly dividend on Thursday, April 21st, Wall Street Journal reports. Shareholders of record on Friday, May 20th will be paid a dividend of 0.2125 per share by the business services provider on Friday, June 24th. This represents a $0.85 annualized dividend and a yield of 4.30%. The ex-dividend date of this dividend is Thursday, May 19th. This is a boost from Healthcare Services Group’s previous quarterly dividend of $0.21.

Healthcare Services Group has a payout ratio of 101.2% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Healthcare Services Group to earn $0.78 per share next year, which means the company may not be able to cover its $0.85 annual dividend with an expected future payout ratio of 109.0%.

NASDAQ:HCSG traded up $3.19 on Thursday, hitting $19.79. The stock had a trading volume of 2,240,152 shares, compared to its average volume of 1,202,863. The business’s fifty day moving average is $17.17 and its 200 day moving average is $18.37. The company has a market cap of $1.46 billion, a PE ratio of 31.90 and a beta of 0.35. Healthcare Services Group has a 52 week low of $14.75 and a 52 week high of $32.96.

Healthcare Services Group (NASDAQ:HCSGGet Rating) last announced its quarterly earnings results on Wednesday, April 20th. The business services provider reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.09. The business had revenue of $426.80 million for the quarter, compared to analyst estimates of $424.78 million. Healthcare Services Group had a return on equity of 9.58% and a net margin of 2.79%. The company’s quarterly revenue was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.33 earnings per share. As a group, analysts anticipate that Healthcare Services Group will post 0.43 EPS for the current year.

A number of institutional investors have recently modified their holdings of the stock. BlackRock Inc. lifted its holdings in Healthcare Services Group by 2.0% during the fourth quarter. BlackRock Inc. now owns 11,710,965 shares of the business services provider’s stock worth $208,336,000 after acquiring an additional 225,363 shares during the period. State Street Corp lifted its holdings in Healthcare Services Group by 4.7% during the fourth quarter. State Street Corp now owns 2,638,182 shares of the business services provider’s stock worth $46,933,000 after acquiring an additional 119,357 shares during the period. Geode Capital Management LLC lifted its holdings in Healthcare Services Group by 1.0% during the fourth quarter. Geode Capital Management LLC now owns 1,353,175 shares of the business services provider’s stock worth $24,072,000 after acquiring an additional 12,981 shares during the period. Norges Bank bought a new stake in Healthcare Services Group during the fourth quarter worth $11,294,000. Finally, Goldman Sachs Group Inc. lifted its holdings in Healthcare Services Group by 19.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 626,914 shares of the business services provider’s stock worth $11,153,000 after acquiring an additional 102,711 shares during the period.

HCSG has been the topic of a number of recent research reports. Jefferies Financial Group lowered Healthcare Services Group from a “hold” rating to an “underperform” rating and dropped their target price for the company from $19.00 to $13.50 in a report on Thursday, February 10th. StockNews.com initiated coverage on Healthcare Services Group in a report on Thursday, March 31st. They issued a “hold” rating on the stock. Royal Bank of Canada raised their target price on Healthcare Services Group from $17.00 to $20.00 and gave the company a “sector perform” rating in a report on Thursday. Credit Suisse Group raised their target price on Healthcare Services Group from $17.00 to $18.00 and gave the company a “neutral” rating in a report on Thursday. Finally, Robert W. Baird raised their target price on Healthcare Services Group from $17.00 to $23.00 in a report on Thursday. Two research analysts have rated the stock with a sell rating and six have issued a hold rating to the company’s stock. According to MarketBeat, Healthcare Services Group presently has a consensus rating of “Hold” and a consensus target price of $21.70.

About Healthcare Services Group (Get Rating)

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.

See Also

Dividend History for Healthcare Services Group (NASDAQ:HCSG)

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