Insider Trading February 20, 2026

HCSG Executive Sells Nearly $916,000 in Stock as Earnings Beat Drives Analyst Upgrades

Chief Revenue Officer Patrick J. Orr disposes of all direct holdings after two transactions; analysts raise targets following strong Q4 2025 results

By Marcus Reed HCSG
HCSG Executive Sells Nearly $916,000 in Stock as Earnings Beat Drives Analyst Upgrades
HCSG

Patrick J. Orr, executive vice president and chief revenue officer of Healthcare Services Group Inc (NASDAQ:HCSG), sold 44,615 shares on February 18, 2026, generating about $915,834 in proceeds. The sale, disclosed in a Form 4 filing, left Orr with zero direct holdings. The transaction occurred while HCSG shares traded near $20.64, after a 96% rise over the past year. Recent quarterly results showed an EPS beat and generated analyst price-target increases from Benchmark and BMO Capital.

Key Points

  • Patrick J. Orr sold 44,615 HCSG shares on February 18, 2026, in two transactions at $20.52 to $20.55, netting roughly $915,834.
  • Following the sale, Orr directly holds 0 shares; the sale was disclosed in a Form 4 filing with the SEC.
  • HCSG reported Q4 2025 EPS of $0.44, beating the $0.22 estimate, while revenue was $466.7 million versus $467.23 million expected; analysts at Benchmark and BMO Capital subsequently raised price targets.

Patrick J. Orr, who serves as executive vice president and chief revenue officer at Healthcare Services Group Inc (NASDAQ:HCSG), reported the sale of 44,615 shares of the company’s common stock on February 18, 2026, according to a Form 4 filing with the Securities and Exchange Commission.

The disposition was completed in two separate transactions at prices ranging from $20.52 to $20.55 per share, producing proceeds of approximately $915,834. The filing indicates that, following these transactions, Orr holds 0 shares of HCSG directly.

At the time of the insider sale, HCSG stock was trading at $20.64, having appreciated roughly 96% over the prior 12 months. An InvestingPro assessment cited in the filing data assigns a Fair Value of $25.05 to the shares and lists 12 additional ProTips for HCSG, including commentary on the company’s share buyback program and its overall financial health.

Separately, Healthcare Services Group released fourth-quarter 2025 financial results that delivered a notable earnings surprise. Reported earnings per share came in at $0.44, double the consensus forecast of $0.22. Revenue for the quarter was $466.7 million, which was slightly below the expected $467.23 million.

Following the quarterly release, Benchmark raised its price target on HCSG to $28.00 from $24.00 while maintaining a Buy rating. Benchmark cited the sizable earnings beat and signs of a healthier client base among skilled nursing facilities as reasons for the adjustment.

Similarly, BMO Capital lifted its price target to $22.00 from $20.00 and kept a Market Perform rating, pointing to continued business momentum and gross margins that exceeded expectations. Together, the analyst actions underscore improved sentiment among some market observers after the company’s latest reported performance.


Context and implications

The Form 4 disclosure documents the insider sale and the immediate change in Orr’s direct ownership. The company-level data referenced in analyst notes and InvestingPro’s Fair Value estimate provide additional perspective on how market participants and research platforms are valuing HCSG following the quarter.

While the filing itself is straightforward, the combination of a material earnings beat, modest revenue shortfall and subsequent analyst target raises frames the stock’s recent trading environment as one where perceived operational improvements have prompted reassessments by sell-side analysts and data providers.


Additional information

  • The insider sale was disclosed via Form 4 with the SEC.
  • Sale price range: $20.52 to $20.55 per share.
  • Proceeds from the transaction: approximately $915,834.
  • Post-transaction direct ownership for Orr: 0 shares.
  • Reported Q4 2025 EPS: $0.44 versus $0.22 estimated.
  • Q4 2025 revenue: $466.7 million versus $467.23 million estimated.
  • InvestingPro Fair Value: $25.05 and 12 ProTips noted.
  • Benchmark price target: raised to $28.00 from $24.00, Buy maintained.
  • BMO Capital price target: raised to $22.00 from $20.00, Market Perform maintained.

Risks

  • Insider selling - The executive sale reduced direct insider ownership to zero, which may raise questions among investors about insider alignment; this affects investor sentiment within equity markets.
  • Revenue shortfall - Q4 2025 revenue of $466.7 million was marginally below expectations of $467.23 million, introducing uncertainty around top-line momentum for the healthcare services sector and related market valuations.
  • Valuation divergence - While InvestingPro assigns a Fair Value of $25.05, current trading around $20.64 and mixed signals from insider activity create potential volatility in HCSG’s stock, impacting equity traders and institutional portfolio managers.

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