Healthcare Services Group (NASDAQ:HCSG) Shares Gap Up After Earnings Beat

Shares of Healthcare Services Group, Inc. (NASDAQ:HCSG) gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $11.95, but opened at $12.44. Healthcare Services Group shares last traded at $11.36, with a volume of 143,063 shares trading hands.

The business services provider reported $0.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.04. Healthcare Services Group had a return on equity of 11.44% and a net margin of 2.44%. The firm had revenue of $423.40 million for the quarter, compared to analyst estimates of $424.91 million. During the same quarter in the prior year, the company earned $0.17 earnings per share. The business’s revenue for the quarter was up 1.5% compared to the same quarter last year.

Wall Street Analyst Weigh In

HCSG has been the topic of several research reports. StockNews.com upgraded shares of Healthcare Services Group from a “sell” rating to a “hold” rating in a report on Thursday, February 22nd. UBS Group upped their price target on shares of Healthcare Services Group from $11.00 to $13.00 and gave the company a “neutral” rating in a research note on Thursday, February 15th. Benchmark raised their price objective on shares of Healthcare Services Group from $16.00 to $17.00 and gave the stock a “buy” rating in a research report on Thursday, February 15th. Royal Bank of Canada upped their target price on Healthcare Services Group from $14.00 to $15.00 and gave the company an “outperform” rating in a research report on Thursday, February 15th. Finally, Robert W. Baird lifted their price target on Healthcare Services Group from $10.00 to $13.00 and gave the stock a “neutral” rating in a report on Thursday, February 15th. Three investment analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. According to MarketBeat, Healthcare Services Group presently has a consensus rating of “Hold” and a consensus target price of $14.50.

Institutional Trading of Healthcare Services Group

A number of institutional investors have recently bought and sold shares of HCSG. CWM LLC raised its position in shares of Healthcare Services Group by 173.4% in the third quarter. CWM LLC now owns 10,209 shares of the business services provider’s stock valued at $106,000 after buying an additional 6,475 shares in the last quarter. SG Americas Securities LLC acquired a new stake in shares of Healthcare Services Group during the 3rd quarter worth $796,000. Azarias Capital Management L.P. increased its position in shares of Healthcare Services Group by 248.8% in the third quarter. Azarias Capital Management L.P. now owns 1,107,788 shares of the business services provider’s stock worth $11,554,000 after purchasing an additional 790,233 shares during the period. Cambiar Investors LLC raised its stake in Healthcare Services Group by 6.2% in the third quarter. Cambiar Investors LLC now owns 150,629 shares of the business services provider’s stock valued at $1,571,000 after purchasing an additional 8,820 shares in the last quarter. Finally, Teacher Retirement System of Texas raised its stake in Healthcare Services Group by 25.9% in the third quarter. Teacher Retirement System of Texas now owns 26,037 shares of the business services provider’s stock valued at $272,000 after purchasing an additional 5,358 shares in the last quarter. Institutional investors own 97.97% of the company’s stock.

Healthcare Services Group Price Performance

The firm has a market cap of $810.04 million, a P/E ratio of 19.30 and a beta of 0.49. The company’s 50-day moving average is $12.23 and its two-hundred day moving average is $10.72.

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.