Wall Street Zen Downgrades Healthcare Services Group (NASDAQ:HCSG) to Buy

Healthcare Services Group (NASDAQ:HCSG) was downgraded by Wall Street Zen from a “strong-buy” rating to a “buy” rating in a report released on Sunday.

Several other research firms have also recently issued reports on HCSG. Robert W. Baird set a $23.00 price target on shares of Healthcare Services Group in a research note on Thursday, February 12th. Benchmark reissued a “buy” rating on shares of Healthcare Services Group in a research note on Thursday, February 12th. BMO Capital Markets reiterated a “market perform” rating and issued a $22.00 price target on shares of Healthcare Services Group in a report on Thursday, February 12th. William Blair raised Healthcare Services Group from a “market perform” rating to an “outperform” rating in a research note on Friday. Finally, UBS Group set a $25.00 price objective on Healthcare Services Group and gave the company a “buy” rating in a research report on Thursday, February 12th. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $22.00.

Healthcare Services Group Stock Performance

Shares of HCSG opened at $20.64 on Friday. The stock has a market capitalization of $1.45 billion, a P/E ratio of 25.17 and a beta of 0.74. Healthcare Services Group has a 1 year low of $9.13 and a 1 year high of $22.98. The company’s fifty day moving average is $19.45 and its two-hundred day moving average is $17.72.

Healthcare Services Group (NASDAQ:HCSG) last announced its quarterly earnings data on Wednesday, February 11th. The business services provider reported $0.44 EPS for the quarter, beating 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 firm had revenue of $466.68 million during the quarter, compared to the consensus estimate of $467.24 million. During the same quarter last year, the firm earned $0.16 earnings per share. The firm’s revenue was up 6.6% compared to the same quarter last year. Sell-side analysts predict that Healthcare Services Group will post 0.74 EPS for the current year.

Insiders Place Their Bets

In other news, EVP Patrick J. Orr sold 45,500 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $20.54, for a total value of $934,570.00. Following the transaction, the executive vice president directly owned 44,615 shares in the company, valued at $916,392.10. This trade represents a 50.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP John Christopher Shea sold 54,357 shares of the business’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $20.41, for a total value of $1,109,426.37. Following the sale, the executive vice president owned 29,292 shares of the company’s stock, valued at $597,849.72. The trade was a 64.98% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 144,472 shares of company stock worth $2,959,942 in the last quarter. 2.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. 8 Knots Management LLC purchased a new position in Healthcare Services Group in the third quarter valued at about $56,527,000. Ameriprise Financial Inc. lifted its position in Healthcare Services Group by 80.2% during the 3rd quarter. Ameriprise Financial Inc. now owns 1,981,840 shares of the business services provider’s stock worth $33,354,000 after acquiring an additional 882,213 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Healthcare Services Group by 1.6% in the 2nd quarter. Geode Capital Management LLC now owns 1,883,225 shares of the business services provider’s stock worth $28,309,000 after acquiring an additional 29,551 shares during the period. American Century Companies Inc. grew its position in Healthcare Services Group by 38.1% in the third quarter. American Century Companies Inc. now owns 1,766,601 shares of the business services provider’s stock valued at $29,732,000 after acquiring an additional 487,608 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of Healthcare Services Group by 240.1% during the second quarter. Arrowstreet Capital Limited Partnership now owns 1,496,835 shares of the business services provider’s stock worth $22,497,000 after purchasing an additional 1,056,705 shares in the last quarter. Hedge funds and other institutional investors own 97.97% of the company’s stock.

Key Healthcare Services Group News

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

About Healthcare Services Group

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.