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

Healthcare Services Group, Inc. (NASDAQ:HCSG)’s stock price gapped up before the market opened 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 traded.

The business services provider reported $0.22 earnings per share for the quarter, topping the consensus estimate of $0.18 by $0.04. The business had revenue of $423.40 million for the quarter, compared to analyst estimates of $424.91 million. Healthcare Services Group had a return on equity of 11.44% and a net margin of 2.44%. The business’s quarterly revenue was up 1.5% on a year-over-year basis. During the same period last year, the company posted $0.17 EPS.

Analyst Ratings Changes

Several brokerages recently weighed in on HCSG. Royal Bank of Canada increased their target price on Healthcare Services Group from $14.00 to $15.00 and gave the stock an “outperform” rating in a research report on Thursday, February 15th. StockNews.com upgraded Healthcare Services Group from a “sell” rating to a “hold” rating in a report on Thursday, February 22nd. UBS Group increased their price target on Healthcare Services Group from $11.00 to $13.00 and gave the company a “neutral” rating in a report on Thursday, February 15th. Benchmark increased their price target on Healthcare Services Group from $16.00 to $17.00 and gave the company a “buy” rating in a report on Thursday, February 15th. Finally, Robert W. Baird increased their price target on Healthcare Services Group from $10.00 to $13.00 and gave the company a “neutral” rating in a report on Thursday, February 15th. Three equities research analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $14.50.

Institutional Trading of Healthcare Services Group

Several large investors have recently added to or reduced their stakes in HCSG. Hsbc Holdings PLC grew its stake in shares of Healthcare Services Group by 24.1% during the third quarter. Hsbc Holdings PLC now owns 60,826 shares of the business services provider’s stock valued at $639,000 after acquiring an additional 11,797 shares in the last quarter. Jump Financial LLC acquired a new stake in shares of Healthcare Services Group during the third quarter valued at about $1,151,000. AQR Capital Management LLC grew its stake in shares of Healthcare Services Group by 269.6% during the third quarter. AQR Capital Management LLC now owns 417,110 shares of the business services provider’s stock valued at $4,350,000 after acquiring an additional 304,258 shares in the last quarter. Assenagon Asset Management S.A. grew its stake in shares of Healthcare Services Group by 87.1% during the third quarter. Assenagon Asset Management S.A. now owns 816,756 shares of the business services provider’s stock valued at $8,519,000 after acquiring an additional 380,110 shares in the last quarter. Finally, Teacher Retirement System of Texas grew its stake in shares of Healthcare Services Group by 25.9% during 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 acquiring an additional 5,358 shares in the last quarter. 97.97% of the stock is currently owned by institutional investors and hedge funds.

Healthcare Services Group Stock Down 2.0 %

The firm has a 50 day moving average price of $12.23 and a two-hundred day moving average price of $10.72. The company has a market capitalization of $810.04 million, a price-to-earnings ratio of 19.30 and a beta of 0.49.

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.