Healthcare Services Group (NASDAQ:HCSG) received a downgrade from a “strong-buy” to a “buy” rating by analysts at Wall Street Zen in a note issued on October 20, 2023. This decision reflects a shift in sentiment for the company amid a broader analysis of its stock performance. Several other financial institutions have also recently assessed the stock, contributing to a mixed outlook for investors.
On November 13, 2023, BMO Capital Markets initiated coverage of Healthcare Services Group with a “market perform” rating and set a target price of $20.00. In the same week, UBS Group reiterated a “buy” rating on the stock, while Weiss Ratings reaffirmed a “hold (C+)” rating on November 21, 2023. Notably, Benchmark raised its target price from $19.00 to $24.00, maintaining its “buy” rating in a report released on October 23, 2023. Meanwhile, Macquarie also reissued a “buy” rating.
Overall, three analysts have rated Healthcare Services Group as a “buy,” while four have given it a “hold” rating. According to data from MarketBeat, the company currently holds a consensus rating of “hold” with an average price target of $19.40.
Recent Earnings Performance
Healthcare Services Group last released its earnings results on October 22, 2023. The business services provider reported earnings per share (EPS) of $0.23, exceeding the consensus estimate of $0.21 by $0.02. The company’s revenue for the quarter stood at $464.34 million, which surpassed analyst expectations of $460.36 million. The firm reported a net margin of 2.20% and a return on equity of 12.23%, indicating stable financial performance. Compared to the previous year, revenue grew by 8.5%. During the same period in 2022, the company had an EPS of $0.19. Looking ahead, Healthcare Services Group has provided guidance for Q4 2025, with analysts forecasting an EPS of $0.74 for the current fiscal year.
Institutional Investors Show Interest
Recent changes in institutional holdings have also drawn attention. Several hedge funds and institutional investors have modified their stakes in Healthcare Services Group. Trail Ridge Investment Advisors LLC increased its position by 2.6% in the third quarter, now owning 24,309 shares valued at $409,000. Amalgamated Bank also raised its holdings by 3.4%, owning 21,563 shares worth $363,000 after purchasing additional shares.
HSBC Holdings PLC boosted its stake by 1.7% during the first quarter, now holding 53,175 shares valued at $539,000. Similarly, Legal & General Group PLC increased its position by 0.5% in the third quarter, owning 200,393 shares worth $3.37 million after acquiring additional shares. Glenmede Investment Management LP also raised its stake by 3.5%, now holding 29,689 shares valued at $500,000.
Current data indicates that institutional investors control approximately 97.97% of Healthcare Services Group’s stock, underscoring significant interest in the company from major financial entities.
Healthcare Services Group, Inc. specializes in providing management, administrative, and operational services to various departments within nursing homes, retirement complexes, rehabilitation centers, and hospitals across the United States. The company operates through two main segments: Housekeeping and Dietary.
As interest from analysts and institutional investors continues to shape the outlook for Healthcare Services Group, market participants will be closely monitoring its performance in the coming quarters.