Healthcare Services Group (NASDAQ:HCSG) Cut to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Healthcare Services Group (NASDAQ:HCSG) from a hold rating to a sell rating in a report published on Wednesday morning, Zacks.com reports.

According to Zacks, “Healthcare Services Group, Inc. provides housekeeping, laundry, linen, facility maintenance and food services to the health care industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals. Healthcare Services Group has the experience and expertise to meet these needs, making the preferred choice for hospital and senior living clients nationwide. Healthcare Services Group has delivered exceptional housekeeping/laundry and dining/nutrition services to an ever-changing healthcare industry. Healthcare Services provide professional management of ancillary services to a diverse mix of satisfied clients. Flexible and responsive, our people are trained to help you achieve success by delivering innovative solutions, exceptional performance and measurable results. “

A number of other analysts have also commented on HCSG. Robert W. Baird decreased their price objective on Healthcare Services Group from $39.00 to $33.00 and set a neutral rating on the stock in a research note on Tuesday, March 19th. BidaskClub lowered Zynerba Pharmaceuticals from a buy rating to a hold rating in a research note on Wednesday, June 26th. ValuEngine raised Zumiez from a sell rating to a hold rating in a research note on Saturday, June 22nd. Jefferies Financial Group reaffirmed a hold rating and set a $32.00 price objective (down previously from $40.00) on shares of Healthcare Services Group in a research note on Friday, July 12th. Finally, Stephens set a $71.00 price objective on Saia and gave the company a hold rating in a research note on Thursday, May 2nd. Four equities research analysts have rated the stock with a sell rating, three have issued a hold rating and two have assigned a buy rating to the company’s stock. The stock has an average rating of Hold and an average price target of $39.40.

Shares of HCSG stock opened at $30.31 on Wednesday. Healthcare Services Group has a fifty-two week low of $28.24 and a fifty-two week high of $48.73. The stock has a market capitalization of $2.25 billion, a PE ratio of 27.06, a P/E/G ratio of 2.44 and a beta of 0.76. The firm has a fifty day moving average price of $31.35.

Healthcare Services Group (NASDAQ:HCSG) last announced its quarterly earnings results on Tuesday, April 30th. The business services provider reported $0.12 earnings per share for the quarter, missing analysts’ consensus estimates of $0.36 by ($0.24). The firm had revenue of $476.11 million during the quarter, compared to analysts’ expectations of $489.64 million. Healthcare Services Group had a net margin of 4.67% and a return on equity of 21.65%. The business’s quarterly revenue was down 4.9% compared to the same quarter last year. Equities analysts expect that Healthcare Services Group will post 1.16 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Friday, June 28th. Shareholders of record on Friday, May 24th were paid a $0.1975 dividend. This represents a $0.79 dividend on an annualized basis and a yield of 2.61%. This is a positive change from Healthcare Services Group’s previous quarterly dividend of $0.20. The ex-dividend date was Thursday, May 23rd. Healthcare Services Group’s dividend payout ratio (DPR) is presently 70.54%.

In other Healthcare Services Group news, Director Robert L. Frome sold 7,502 shares of the firm’s stock in a transaction dated Tuesday, June 11th. The stock was sold at an average price of $32.64, for a total value of $244,865.28. Following the sale, the director now directly owns 18,407 shares of the company’s stock, valued at approximately $600,804.48. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 1.00% of the stock is currently owned by company insiders.

A number of large investors have recently modified their holdings of the business. Oregon Public Employees Retirement Fund boosted its stake in Healthcare Services Group by 1.4% in the 2nd quarter. Oregon Public Employees Retirement Fund now owns 29,949 shares of the business services provider’s stock worth $908,000 after buying an additional 422 shares during the last quarter. Bronfman E.L. Rothschild L.P. lifted its stake in shares of Healthcare Services Group by 43.6% in the 4th quarter. Bronfman E.L. Rothschild L.P. now owns 1,512 shares of the business services provider’s stock valued at $61,000 after purchasing an additional 459 shares in the last quarter. SG Americas Securities LLC lifted its stake in shares of Healthcare Services Group by 3.9% in the 1st quarter. SG Americas Securities LLC now owns 12,683 shares of the business services provider’s stock valued at $418,000 after purchasing an additional 479 shares in the last quarter. LPL Financial LLC lifted its stake in shares of Healthcare Services Group by 5.9% in the 4th quarter. LPL Financial LLC now owns 8,996 shares of the business services provider’s stock valued at $361,000 after purchasing an additional 502 shares in the last quarter. Finally, Goelzer Investment Management Inc. lifted its stake in shares of Healthcare Services Group by 0.8% in the 1st quarter. Goelzer Investment Management Inc. now owns 64,718 shares of the business services provider’s stock valued at $2,135,000 after purchasing an additional 537 shares in the last quarter.

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.

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