Healthcare Services Group (NASDAQ:HCSG) Hits New 52-Week High After Better-Than-Expected Earnings

Healthcare Services Group, Inc. (NASDAQ:HCSG)’s share price hit a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $21.63 and last traded at $20.8720, with a volume of 309327 shares. The stock had previously closed at $19.24.

The business services provider reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.21. Healthcare Services Group had a return on equity of 16.16% and a net margin of 3.21%.The company had revenue of $466.68 million during the quarter, compared to the consensus estimate of $467.24 million. During the same quarter in the prior year, the company earned $0.16 EPS. The firm’s quarterly revenue was up 6.6% compared to the same quarter last year.

More Healthcare Services Group News

Here are the key news stories impacting Healthcare Services Group this week:

• Positive Sentiment: Q4 earnings beat: HCSG reported $0.44 EPS vs. $0.23 consensus (strong EPS beat and year-over-year EPS improvement), which pushed shares higher on the news. MarketBeat Earnings Release
• Positive Sentiment: $75M buyback and 2026 guidance: Management authorized a $75 million share repurchase plan and guided to mid-single-digit revenue growth for 2026, signaling capital return and modest growth expectations that investors typically view favorably. MSN Repurchase & Guidance
• Positive Sentiment: Market reaction & coverage: Multiple outlets and analysts highlighted the beat + buyback, contributing to intraday gains (coverage noting ~6–9% pops). This publicity amplified trading volume. MSN Stock Reaction
• Neutral Sentiment: Earnings call transparency: The Q4 call transcript and highlights provide details on mix, reimbursement and margin dynamics for investors modeling forward earnings. Useful for assessing sustainability of the beat. Seeking Alpha Transcript
• Neutral Sentiment: Short-interest reporting appears to show zero shares/erroneous values for February filings (days-to-cover = 0.0), which is likely a data anomaly and not a confirmed market signal. Monitor future filings for clarity.
• Negative Sentiment: Revenue and margin context: Revenue of $466.68M was essentially flat to consensus (slightly below the $467.24M estimate) and net margin/ROE figures remain modest, which could cap upside if investors expect stronger top-line acceleration. Yahoo Earnings Highlights

Analysts Set New Price Targets

HCSG has been the topic of several research reports. Weiss Ratings reissued a “hold (c+)” rating on shares of Healthcare Services Group in a research report on Monday, December 29th. Macquarie Infrastructure reissued a “buy” rating on shares of Healthcare Services Group in a report on Wednesday, November 26th. Benchmark restated a “buy” rating on shares of Healthcare Services Group in a research report on Thursday. Robert W. Baird set a $23.00 price target on Healthcare Services Group in a report on Thursday. Finally, BMO Capital Markets reiterated a “market perform” rating and issued a $22.00 price target on shares of Healthcare Services Group in a research report on Thursday. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, Healthcare Services Group has an average rating of “Hold” and a consensus price target of $22.00.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in HCSG. Integrated Quantitative Investments LLC bought a new position in shares of Healthcare Services Group in the fourth quarter worth $1,706,000. Informed Momentum Co LLC purchased a new position in Healthcare Services Group during the fourth quarter worth about $4,235,000. Campbell & CO Investment Adviser LLC grew its position in Healthcare Services Group by 73.5% during the fourth quarter. Campbell & CO Investment Adviser LLC now owns 42,791 shares of the business services provider’s stock worth $818,000 after buying an additional 18,125 shares in the last quarter. Towle & Co. bought a new position in Healthcare Services Group in the 4th quarter worth about $7,396,000. Finally, Swiss National Bank raised its holdings in shares of Healthcare Services Group by 1.1% in the 4th quarter. Swiss National Bank now owns 142,863 shares of the business services provider’s stock valued at $2,732,000 after acquiring an additional 1,500 shares in the last quarter. 97.97% of the stock is currently owned by hedge funds and other institutional investors.

Healthcare Services Group Trading Down 4.2%

The stock has a market cap of $1.50 billion, a PE ratio of 26.02 and a beta of 0.74. The firm has a fifty day simple moving average of $19.20 and a two-hundred day simple moving average of $17.38.

Healthcare Services Group Company Profile

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.