Market Analysts see Healthcare Services Group Inc. [HCSG] falling to $13.50. Time to buy?


Healthcare Services Group Inc. [NASDAQ: HCSG] traded at a low on 07/21/22, posting a -8.30 loss after which it closed the day’ session at $14.26. The company report on July 20, 2022 that Healthcare Services Group, Inc. Reports Q2 2022 Results.

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Healthcare Services Group, Inc. (NASDAQ:HCSG) (the “Company”) reported for the three months ended June 30, 2022 revenue of $424.9 million and net income of $6.8 million, or $0.09 per basic and diluted common share. The Company’s Board of Directors declared a quarterly cash dividend of $0.21375 per common share, the 76th consecutive increase since the initiation of dividend payments in 2003.

Ted Wahl, Chief Executive Officer, stated, “We have now either completed or are in the final stages of negotiation with our clients in modifying our service agreements, a goal we very aggressively pursued throughout the second quarter.”.

The results of the trading session contributed to over 2264854 shares changing hands. Over the past one week, the price volatility of Healthcare Services Group Inc. stands at 9.52% while the volatility over the past one month is 4.78%.

The market cap for HCSG stock reached $1.01 billion, with 74.33 million shares outstanding and 73.50 million shares in the current float. Compared to the average trading volume of 696.45K shares, HCSG reached a trading volume of 2264854 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 $19.42 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 3.00. 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 0.91, with the Price to Sales ratio for HCSG stock in the period of the last 12 months amounting to 0.61. The Price to Book ratio for the last quarter was 2.37, with the Price to Cash per share for the same quarter was set at 1.98.

How has HCSG stock performed recently?

Healthcare Services Group Inc. [HCSG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -19.53. With this latest performance, HCSG shares dropped by -12.89% in over the last four-week period, additionally sinking by -21.35% over the last 6 months – not to mention a drop of -47.03% 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 29.27, with the RSI for the last a single of trading hit 23.75, and the three-weeks RSI is set at 33.49 for Healthcare Services Group Inc. [HCSG]. The present Moving Average for the last 50 days of trading for this stock 17.06, while it was recorded at 16.99 for the last single week of trading, and 17.88 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 2.90 and a Current Ratio set at 3.00.

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 $1,235 million, in the hands of institutional investors. The top three institutional holders of HCSG stocks are: BLACKROCK INC. with ownership of 11,772,443, which is approximately 0.525% of the company’s market cap and around 0.40% of the total institutional ownership; VANGUARD GROUP INC, holding 8,304,115 shares of the stock with an approximate value of $129.13 million in HCSG stocks shares; and MACKENZIE FINANCIAL CORP, currently with $65.8 million in HCSG stock with ownership of nearly -0.022% of the company’s market capitalization.

Positions in Healthcare Services Group Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 117 institutional holders increased their position in Healthcare Services Group Inc. [NASDAQ:HCSG] by around 13,251,293 shares. Additionally, 118 investors decreased positions by around 9,869,936 shares, while 22 investors held positions by with 56,317,771 shares. The mentioned changes placed institutional holdings at 79,439,000 shares, according to the latest SEC report filing. HCSG stock had 27 new institutional investments in for a total of 4,794,074 shares, while 41 institutional investors sold positions of 2,494,295 shares during the same period.