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

Healthcare Services Group, Inc. (NASDAQ:HCSG) shares gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. 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 traded.

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

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on HCSG. Robert W. Baird reduced their price objective 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. Benchmark reiterated a “buy” rating and issued a $17.00 price target on shares of Healthcare Services Group in a research report on Thursday, December 19th. Macquarie assumed coverage on Healthcare Services Group in a report on Monday, December 16th. They set a “neutral” rating and a $13.00 price objective on the stock. Finally, StockNews.com raised shares of Healthcare Services Group from a “hold” rating to a “buy” rating in a research note on Tuesday. Three equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $13.80.

Institutional Investors Weigh In On Healthcare Services Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wealthfront Advisers LLC acquired a new position in Healthcare Services Group in the 4th quarter worth about $166,278,000. Vanguard Group Inc. raised its position in Healthcare Services Group by 0.3% during the fourth quarter. Vanguard Group Inc. now owns 8,276,610 shares of the business services provider’s stock valued at $96,133,000 after acquiring an additional 23,373 shares in the last quarter. Royce & Associates LP grew its position in Healthcare Services Group by 4.9% in the fourth quarter. Royce & Associates LP now owns 4,668,599 shares of the business services provider’s stock worth $54,226,000 after acquiring an additional 219,103 shares in the last quarter. State Street Corp raised its holdings in shares of Healthcare Services Group by 8.3% during the 3rd quarter. State Street Corp now owns 2,964,325 shares of the business services provider’s stock valued at $33,112,000 after purchasing an additional 226,818 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in Healthcare Services Group by 2.9% during the third quarter. Geode Capital Management LLC now owns 1,760,971 shares of the business services provider’s stock worth $19,674,000 after buying an additional 50,375 shares during the last quarter. Hedge funds and other institutional investors own 97.97% of the company’s stock.

Healthcare Services Group Stock Down 1.7 %

The company has a market cap of $784.95 million, a price-to-earnings ratio of 15.52 and a beta of 0.56. The business has a 50-day simple moving average of $11.60 and a two-hundred day simple moving average of $11.24.

Healthcare Services Group Company Profile

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.