Healthcare Services Group (NASDAQ:HCSG) Downgraded by Wall Street Zen to “Buy”

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

A number of other equities analysts also recently commented on the company. Benchmark reiterated a “buy” rating on shares of Healthcare Services Group in a research note on Thursday, February 12th. UBS Group set a $25.00 price target on Healthcare Services Group and gave the company a “buy” rating in a research report on Thursday, February 12th. William Blair raised shares of Healthcare Services Group from a “market perform” rating to an “outperform” rating in a report on Friday. Robert W. Baird set a $23.00 target price on shares of Healthcare Services Group in a report on Thursday, February 12th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Healthcare Services Group in a report on Monday, December 29th. Four analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $22.00.

Healthcare Services Group Trading Up 2.1%

Healthcare Services Group stock opened at $20.64 on Friday. Healthcare Services Group has a 52 week low of $9.13 and a 52 week high of $22.98. The stock has a market cap of $1.45 billion, a P/E ratio of 25.17 and a beta of 0.74. The stock has a 50 day moving average of $19.45 and a 200-day moving average of $17.72.

Healthcare Services Group (NASDAQ:HCSG) last posted its quarterly earnings results on Wednesday, February 11th. The business services provider reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate 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 for the quarter, compared to analysts’ expectations of $467.24 million. During the same period in the prior year, the company posted $0.16 earnings per share. The firm’s quarterly revenue was up 6.6% on a year-over-year basis. As a group, equities analysts predict that Healthcare Services Group will post 0.74 earnings per share for the current fiscal year.

Insider Activity

In related news, EVP Patrick J. Orr sold 44,615 shares of the company’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $20.53, for a total value of $915,945.95. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP John Christopher Shea sold 54,357 shares of the firm’s stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $20.41, for a total transaction of $1,109,426.37. Following the completion of the transaction, the executive vice president directly owned 29,292 shares of the company’s stock, valued at $597,849.72. This represents a 64.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 144,472 shares of company stock worth $2,959,942. Corporate insiders own 2.60% of the company’s stock.

Institutional Trading of Healthcare Services Group

Hedge funds have recently modified their holdings of the business. Miller Global Investments LLC acquired a new stake in shares of Healthcare Services Group in the fourth quarter worth $26,000. EverSource Wealth Advisors LLC boosted its position in Healthcare Services Group by 163.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the business services provider’s stock worth $33,000 after acquiring an additional 1,356 shares during the period. Caitong International Asset Management Co. Ltd purchased a new position in Healthcare Services Group during the 4th quarter valued at about $33,000. GAMMA Investing LLC increased its holdings in shares of Healthcare Services Group by 94.9% in the 3rd quarter. GAMMA Investing LLC now owns 2,843 shares of the business services provider’s stock valued at $48,000 after purchasing an additional 1,384 shares during the period. Finally, Farther Finance Advisors LLC lifted its position in shares of Healthcare Services Group by 32.0% in the fourth quarter. Farther Finance Advisors LLC now owns 3,619 shares of the business services provider’s stock worth $69,000 after purchasing an additional 877 shares in the last quarter. Hedge funds and other institutional investors own 97.97% of the company’s stock.

Key Stories Impacting Healthcare Services Group

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

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.