Equities researchers at Wall Street Zen have downgraded the stock rating of Healthcare Services Group (NASDAQ:HCSG) from “strong-buy” to “buy,” according to a note issued to investors on October 20, 2023. This adjustment comes as part of a broader assessment of the company’s performance and market conditions.
Recent Analyst Ratings
In addition to Wall Street Zen’s downgrade, several other brokerages have offered insights on HCSG’s stock. On November 13, 2023, BMO Capital Markets initiated coverage with a “market perform” rating, setting a price target of $20.00. Meanwhile, UBS Group reaffirmed a “buy” rating on November 24, 2023, signaling continued confidence in the company’s prospects.
Other significant updates include a report from Benchmark, which raised its target price from $19.00 to $24.00 and maintained a “buy” rating on October 23, 2023. Weiss Ratings has also reaffirmed a “hold (C+)” rating as of October 31, 2023, while Macquarie reiterated a “buy” rating recently. Overall, three analysts have rated HCSG as a “buy,” and four have issued “hold” ratings, according to data from MarketBeat.
Financial Performance and Future Guidance
Healthcare Services Group reported its most recent earnings on October 22, 2023. The company posted earnings per share (EPS) of $0.23, surpassing the consensus estimate of $0.21 by $0.02. Revenue for the quarter reached $464.34 million, exceeding analyst projections of $460.36 million.
In terms of profitability, the company achieved a net margin of 2.20% and a return on equity of 12.23%. This performance marks an 8.5% increase in revenue compared to the same quarter last year, during which the firm earned $0.19 EPS. Looking ahead, Healthcare Services Group has set its guidance for Q4 2025 earnings at an expected EPS of $0.74.
Institutional Investment Trends
Recent changes in institutional holdings reflect investor sentiment toward Healthcare Services Group. Trail Ridge Investment Advisors LLC increased its stake by 2.6% in the third quarter, now owning 24,309 shares valued at approximately $409,000. Similarly, Amalgamated Bank raised its holdings by 3.4%, acquiring an additional 719 shares.
HSBC Holdings PLC also boosted its stake by 1.7%, owning 53,175 shares valued at around $539,000 after purchasing more shares recently. Legal & General Group Plc raised its position by 0.5%, now holding 200,393 shares worth $3.37 million. Notably, institutional investors currently control approximately 97.97% of the company’s stock.
About Healthcare Services Group
Healthcare Services Group, Inc. provides management, administrative, and operational services to various departments, including housekeeping, laundry, linen, facility maintenance, and dietary services in nursing homes, retirement complexes, rehabilitation centers, and hospitals across the United States. The company operates through two segments: Housekeeping and Dietary.
As analysts continue to evaluate Healthcare Services Group, investors are encouraged to monitor future financial reports and market assessments for potential shifts in stock performance.
