BidaskClub Downgrades Healthcare Services Group (NASDAQ:HCSG) to Strong Sell

BidaskClub cut shares of Healthcare Services Group (NASDAQ:HCSG) from a sell rating to a strong sell rating in a report issued on Tuesday, BidAskClub reports.

A number of other brokerages have also recently weighed in on HCSG. Credit Suisse Group reduced their price target on shares of Healthcare Services Group from $41.00 to $35.00 and set an outperform rating for the company in a research report on Wednesday, July 24th. Jefferies Financial Group reissued a hold rating and issued a $32.00 price target (down from $40.00) on shares of Healthcare Services Group in a research report on Friday, July 12th. Sidoti reduced their price target on shares of Healthcare Services Group from $51.00 to $43.00 and set a buy rating for the company in a research report on Wednesday, July 24th. Benchmark reissued a buy rating on shares of Healthcare Services Group in a research report on Thursday, June 27th. Finally, ValuEngine lowered shares of Healthcare Services Group from a hold rating to a sell rating in a research note on Saturday, June 22nd. Four analysts have rated the stock with a sell rating, three have assigned a hold rating and four have assigned a buy rating to the company’s stock. Healthcare Services Group has an average rating of Hold and a consensus target price of $39.29.

Shares of HCSG opened at $21.27 on Tuesday. Healthcare Services Group has a 1-year low of $21.16 and a 1-year high of $48.73. The stock has a market cap of $1.64 billion, a PE ratio of 18.99 and a beta of 0.71. The firm has a fifty day moving average price of $26.04 and a 200 day moving average price of $32.06.

Healthcare Services Group (NASDAQ:HCSG) last announced its quarterly earnings results on Tuesday, July 23rd. The business services provider reported $0.24 earnings per share for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.11). Healthcare Services Group had a net margin of 4.38% and a return on equity of 19.40%. The company had revenue of $462.10 million during the quarter, compared to analysts’ expectations of $477.68 million. During the same period last year, the firm earned $0.35 earnings per share. Healthcare Services Group’s revenue was down 7.9% on a year-over-year basis. On average, analysts anticipate that Healthcare Services Group will post 0.93 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 27th. Shareholders of record on Friday, August 23rd will be paid a $0.199 dividend. The ex-dividend date of this dividend is Thursday, August 22nd. This is a positive change from Healthcare Services Group’s previous quarterly dividend of $0.20. This represents a $0.80 dividend on an annualized basis and a yield of 3.74%. Healthcare Services Group’s payout ratio is currently 70.54%.

In other Healthcare Services Group news, Director Robert L. Frome sold 7,502 shares of Healthcare Services Group stock in a transaction on Tuesday, June 11th. The shares were sold at an average price of $32.64, for a total value of $244,865.28. Following the transaction, the director now directly owns 18,407 shares in the company, valued at $600,804.48. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 1.00% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Arizona State Retirement System increased its stake in shares of Healthcare Services Group by 1.5% during the second quarter. Arizona State Retirement System now owns 53,762 shares of the business services provider’s stock worth $1,630,000 after acquiring an additional 771 shares during the period. SG Americas Securities LLC increased its stake in shares of Healthcare Services Group by 3.9% during the first quarter. SG Americas Securities LLC now owns 12,683 shares of the business services provider’s stock worth $418,000 after acquiring an additional 479 shares during the period. Boston Partners acquired a new position in shares of Healthcare Services Group during the first quarter worth about $638,000. William Blair Investment Management LLC increased its stake in shares of Healthcare Services Group by 0.8% during the first quarter. William Blair Investment Management LLC now owns 4,203,079 shares of the business services provider’s stock worth $138,660,000 after acquiring an additional 34,862 shares during the period. Finally, Strs Ohio increased its stake in shares of Healthcare Services Group by 3.5% during the first quarter. Strs Ohio now owns 132,800 shares of the business services provider’s stock worth $4,381,000 after acquiring an additional 4,500 shares during the period.

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.

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Analyst Recommendations for Healthcare Services Group (NASDAQ:HCSG)

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