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

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

The business services provider reported $0.44 EPS for the quarter, topping the consensus estimate of $0.23 by $0.21. The business had revenue of $466.68 million during the quarter, compared to the consensus estimate of $467.24 million. Healthcare Services Group had a net margin of 2.20% and a return on equity of 12.23%. The business’s revenue for the quarter was up 6.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.16 earnings per share.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. UBS Group reissued a “buy” rating on shares of Healthcare Services Group in a report on Monday, November 24th. Benchmark upped their target price on Healthcare Services Group from $19.00 to $24.00 and gave the company a “buy” rating in a research report on Thursday, October 23rd. Wall Street Zen lowered shares of Healthcare Services Group from a “strong-buy” rating to a “buy” rating in a research report on Friday, January 23rd. BMO Capital Markets assumed coverage on shares of Healthcare Services Group in a research note on Thursday, November 13th. They set a “market perform” rating and a $20.00 price objective for the company. Finally, Macquarie Infrastructure reaffirmed a “buy” rating on shares of Healthcare Services Group in a report on Wednesday, November 26th. Three research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $19.40.

Hedge Funds Weigh In On Healthcare Services Group

Several institutional investors have recently made changes to their positions in HCSG. 8 Knots Management LLC acquired a new position in shares of Healthcare Services Group in the 3rd quarter valued at $56,527,000. Ameriprise Financial Inc. increased its holdings in Healthcare Services Group by 80.2% in the third quarter. Ameriprise Financial Inc. now owns 1,981,840 shares of the business services provider’s stock valued at $33,354,000 after buying an additional 882,213 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Healthcare Services Group by 1.6% in the second 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. boosted its stake in shares of Healthcare Services Group by 38.1% during the 3rd quarter. American Century Companies Inc. now owns 1,766,601 shares of the business services provider’s stock worth $29,732,000 after acquiring an additional 487,608 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its position in shares of Healthcare Services Group by 240.1% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,496,835 shares of the business services provider’s stock valued at $22,497,000 after acquiring an additional 1,056,705 shares during the period. 97.97% of the stock is owned by hedge funds and other institutional investors.

Healthcare Services Group Trading Up 11.5%

The stock has a 50-day moving average price of $19.08 and a 200 day moving average price of $17.31. The stock has a market capitalization of $1.51 billion, a price-to-earnings ratio of 39.42 and a beta of 0.74.

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.