Healthcare Services Group (NASDAQ:HCSG) Shares Gap Up on Strong Earnings

Healthcare Services Group, Inc. (NASDAQ:HCSG)’s share price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $9.41, but opened at $11.10. Healthcare Services Group shares last traded at $12.07, with a volume of 302,943 shares trading hands.

The business services provider reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.05. Healthcare Services Group had a net margin of 2.30% and a return on equity of 11.76%. The company had revenue of $447.66 million for the quarter, compared to analyst estimates of $443.82 million.

Wall Street Analyst Weigh In

Separately, StockNews.com lowered Healthcare Services Group from a “buy” rating to a “hold” rating in a report on Wednesday, February 19th. Three investment analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $14.00.

Hedge Funds Weigh In On Healthcare Services Group

A number of hedge funds have recently modified their holdings of HCSG. North Star Investment Management Corp. lifted its holdings in shares of Healthcare Services Group by 1.8% during the first quarter. North Star Investment Management Corp. now owns 102,950 shares of the business services provider’s stock valued at $1,038,000 after acquiring an additional 1,850 shares during the period. SummerHaven Investment Management LLC lifted its position in Healthcare Services Group by 1.8% during the 1st quarter. SummerHaven Investment Management LLC now owns 73,841 shares of the business services provider’s stock worth $744,000 after buying an additional 1,297 shares in the last quarter. Bridge City Capital LLC increased its position in Healthcare Services Group by 1.4% in the 1st quarter. Bridge City Capital LLC now owns 171,424 shares of the business services provider’s stock valued at $1,728,000 after acquiring an additional 2,419 shares in the last quarter. GAMMA Investing LLC lifted its position in shares of Healthcare Services Group by 852.4% during the first quarter. GAMMA Investing LLC now owns 20,352 shares of the business services provider’s stock worth $2,019,000 after purchasing an additional 18,215 shares in the last quarter. Finally, PharVision Advisers LLC bought a new position in Healthcare Services Group in the 4th quarter worth approximately $147,000. 97.97% of the stock is owned by institutional investors and hedge funds.

Healthcare Services Group Stock Up 29.5 %

The company has a market cap of $888.85 million, a P/E ratio of 22.57 and a beta of 0.62. The business has a 50-day moving average price of $10.34 and a two-hundred day moving average price of $11.07.

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.