Healthcare Services Group Inc. [HCSG] stock Downgrade by Jefferies analyst, price target now $13.50


Healthcare Services Group Inc. [NASDAQ: HCSG] traded at a high on 04/20/22, posting a 19.94 gain after which it closed the day’ session at $19.91. The company report on April 20, 2022 that Healthcare Services Group, Inc. Reports Q1 2022 Results.

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Healthcare Services Group, Inc. (NASDAQ:HCSG) (the “Company”) reported for the three months ended March 31, 2022 revenue of $426.8 million and net income of $11.3 million, or $0.15 per basic and diluted common share. The Company’s Board of Directors declared a quarterly cash dividend of $0.2125 per common share, the 75th consecutive increase since the initiation of dividend payments in 2003.

Ted Wahl, Chief Executive Officer, stated, “Overall, I am pleased with our start to the year. More efficient labor management, specifically related to premium pay programs and overtime, along with the catch-up of food inflation pass-through increases and continued progress on our service agreement modification efforts, all contributed to improved financial outcomes in the quarter.”.

The results of the trading session contributed to over 5433405 shares changing hands. Over the past one week, the price volatility of Healthcare Services Group Inc. stands at 6.27% while the volatility over the past one month is 4.05%.

The market cap for HCSG stock reached $1.47 billion, with 74.31 million shares outstanding and 73.46 million shares in the current float. Compared to the average trading volume of 1.17M shares, HCSG reached a trading volume of 5433405 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Healthcare Services Group Inc. [HCSG]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for HCSG shares is $17.42 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on HCSG stock is a recommendation set at 2.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Jefferies have made an estimate for Healthcare Services Group Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on February 10, 2022. The new note on the price target was released on October 20, 2021, representing the official price target for Healthcare Services Group Inc. stock. Previously, the target price had yet another raise to $31, while Stifel analysts kept a Hold rating on HCSG stock.

The Average True Range (ATR) for Healthcare Services Group Inc. is set at 0.85, with the Price to Sales ratio for HCSG stock in the period of the last 12 months amounting to 0.90. The Price to Book ratio for the last quarter was 3.27, with the Price to Cash per share for the same quarter was set at 2.50.

How has HCSG stock performed recently?

Healthcare Services Group Inc. [HCSG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 15.29. With this latest performance, HCSG shares gained by 13.77% in over the last four-week period, additionally sinking by -14.44% over the last 6 months – not to mention a drop of -37.03% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for HCSG stock in for the last two-week period is set at 69.51, with the RSI for the last a single of trading hit 74.42, and the three-weeks RSI is set at 65.71 for Healthcare Services Group Inc. [HCSG]. The present Moving Average for the last 50 days of trading for this stock 17.13, while it was recorded at 17.51 for the last single week of trading, and 20.90 for the last 200 days.

Healthcare Services Group Inc. [HCSG]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Healthcare Services Group Inc. [HCSG] shares currently have an operating margin of +2.87 and a Gross Margin at +14.46. Healthcare Services Group Inc.’s Net Margin is presently recorded at +2.79.

Return on Equity for this stock inclined to 9.83, with Return on Assets sitting at 5.80.

Healthcare Services Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.70 and a Current Ratio set at 2.90.

Earnings analysis for Healthcare Services Group Inc. [HCSG]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for HCSG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Healthcare Services Group Inc. go to 9.00%.

Insider trade positions for Healthcare Services Group Inc. [HCSG]

There are presently around $1,285 million, in the hands of institutional investors. The top three institutional holders of HCSG stocks are: BLACKROCK INC. with ownership of 11,710,965, which is approximately 1.962% of the company’s market cap and around 0.50% of the total institutional ownership; VANGUARD GROUP INC, holding 8,796,411 shares of the stock with an approximate value of $146.02 million in HCSG stocks shares; and MACKENZIE FINANCIAL CORP, currently with $70.26 million in HCSG stock with ownership of nearly -0.39% of the company’s market capitalization.

Positions in Healthcare Services Group Inc. stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 128 institutional holders increased their position in Healthcare Services Group Inc. [NASDAQ:HCSG] by around 15,780,962 shares. Additionally, 131 investors decreased positions by around 15,839,919 shares, while 21 investors held positions by with 45,782,063 shares. The mentioned changes placed institutional holdings at 77,402,944 shares, according to the latest SEC report filing. HCSG stock had 46 new institutional investments in for a total of 9,007,349 shares, while 51 institutional investors sold positions of 6,977,771 shares during the same period.