Healthcare Services Group (NASDAQ:HCSG) Shares Gap Down on Disappointing Earnings

Healthcare Services Group, Inc. (NASDAQ:HCSG)’s stock price gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $10.91, but opened at $10.02. Healthcare Services Group shares last traded at $10.51, with a volume of 97,654 shares.

The business services provider reported $0.16 earnings per share for the quarter, missing the consensus estimate of $0.20 by ($0.04). Healthcare Services Group had a return on equity of 12.59% and a net margin of 2.95%.

Analyst Ratings Changes

HCSG has been the topic of a number of research analyst reports. Benchmark reissued a “buy” rating and set a $17.00 price target on shares of Healthcare Services Group in a report on Thursday, December 19th. Macquarie initiated coverage on Healthcare Services Group in a report on Monday, December 16th. They set a “neutral” rating and a $13.00 price target on the stock. StockNews.com raised Healthcare Services Group from a “hold” rating to a “buy” rating in a report on Tuesday. Finally, Robert W. Baird decreased their target price on Healthcare Services Group from $14.00 to $12.00 and set a “neutral” rating for the company in a research note on Thursday, October 24th. Three investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $13.80.

Hedge Funds Weigh In On Healthcare Services Group

A number of hedge funds and other institutional investors have recently modified their holdings of HCSG. GAMMA Investing LLC boosted its position in shares of Healthcare Services Group by 100.8% in the 4th quarter. GAMMA Investing LLC now owns 2,137 shares of the business services provider’s stock valued at $25,000 after purchasing an additional 1,073 shares during the period. SBI Securities Co. Ltd. acquired a new position in shares of Healthcare Services Group in the 4th quarter valued at $25,000. Farther Finance Advisors LLC boosted its position in Healthcare Services Group by 804.0% during the 3rd quarter. Farther Finance Advisors LLC now owns 2,730 shares of the business services provider’s stock worth $30,000 after acquiring an additional 2,428 shares during the period. Financial Management Professionals Inc. boosted its position in Healthcare Services Group by 85.7% during the 3rd quarter. Financial Management Professionals Inc. now owns 8,180 shares of the business services provider’s stock worth $91,000 after acquiring an additional 3,774 shares during the period. Finally, Bleakley Financial Group LLC acquired a new stake in Healthcare Services Group during the 3rd quarter worth about $116,000. Institutional investors and hedge funds own 97.97% of the company’s stock.

Healthcare Services Group Trading Down 4.0 %

The stock has a market capitalization of $767.72 million, a price-to-earnings ratio of 15.18 and a beta of 0.56. The stock has a 50-day simple moving average of $11.64 and a 200 day simple moving average of $11.24.

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.