Target Hospitality Corp. (NASDAQ:TH) Stock Now Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Analysts rate Target Hospitality “Moderate Buy”, with four buy ratings, one strong-buy rating and one sell rating. The average 12-month price target is $25.20, above the stock’s reported $18.84 price.
• Company insiders recently increased their holdings, including CEO James Archer’s purchase of 13,385 shares and insider Troy Schrenk’s purchase of 5,907 shares. Institutional investors own 32.4% of the company, with BlackRock taking a new $64.3 million position.
• Target Hospitality exceeded quarterly expectations, reporting adjusted earnings of -$0.09 per share versus the -$0.11 consensus and revenue of $85.45 million versus $79.30 million expected. Despite the revenue beat, the company remains unprofitable, with a negative net margin of 10.85%.

Shares of Target Hospitality Corp. (NASDAQ:TH - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the six research firms that are currently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, four have assigned a buy rating and one has issued a strong buy rating on the company. The average 12-month target price among analysts that have covered the stock in the last year is $25.20.

A number of equities research analysts have commented on TH shares. Morgan Stanley upped their price target on Target Hospitality from $22.00 to $25.00 and gave the company an "overweight" rating in a research report on Monday, September 14th. Weiss Ratings upgraded Target Hospitality from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, August 21st. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $23.00 price objective on shares of Target Hospitality in a research report on Thursday, August 27th. Stifel Nicolaus set a $26.00 target price on Target Hospitality in a report on Thursday, August 27th. Finally, Northland Securities set a $25.00 target price on shares of Target Hospitality in a research report on Thursday, August 27th.

Insider Buying and Selling

In other news, insider Troy C. Schrenk bought 5,907 shares of the stock in a transaction that occurred on Friday, September 18th. The stock was acquired at an average price of $21.16 per share, with a total value of $124,992.12. Following the completion of the purchase, the insider directly owned 216,995 shares of the company's stock, valued at approximately $4,591,614.20. This represents a 2.80% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, CEO James Archer bought 13,385 shares of the company's stock in a transaction that occurred on Tuesday, September 15th. The stock was purchased at an average price of $18.69 per share, for a total transaction of $250,165.65. Following the acquisition, the chief executive officer owned 1,845,441 shares of the company's stock, valued at $34,491,292.29. This trade represents a 0.73% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 3.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. BlackRock Inc. bought a new stake in shares of Target Hospitality in the 2nd quarter valued at $64,312,000. Hsbc Holdings PLC acquired a new position in Target Hospitality during the 2nd quarter worth approximately $1,506,000. Bank of New York Mellon Corp acquired a new position in Target Hospitality during the 2nd quarter worth approximately $8,140,000. Arrowstreet Capital Limited Partnership boosted its holdings in Target Hospitality by 15.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,081,081 shares of the company's stock worth $10,032,000 after acquiring an additional 147,950 shares in the last quarter. Finally, Bank of America Corp DE bought a new position in Target Hospitality in the second quarter worth approximately $7,142,000. 32.40% of the stock is owned by institutional investors.

Target Hospitality Price Performance

TH stock opened at $18.84 on Friday. The company has a market capitalization of $1.88 billion, a P/E ratio of -49.58 and a beta of 1.49. The company has a fifty day moving average price of $18.14 and a 200-day moving average price of $16.72. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.65 and a current ratio of 0.65. Target Hospitality has a 52-week low of $5.97 and a 52-week high of $21.76.

Target Hospitality (NASDAQ:TH - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The company reported ($0.09) earnings per share for the quarter, topping the consensus estimate of ($0.11) by $0.02. The company had revenue of $85.45 million for the quarter, compared to analysts' expectations of $79.30 million. Target Hospitality had a negative net margin of 10.85% and a negative return on equity of 9.80%. As a group, equities analysts expect that Target Hospitality will post -0.04 EPS for the current year.

Target Hospitality Company Profile

Target Hospitality Corporation NASDAQ: TH is a provider of vertically integrated hospitality and support services for organizations operating in remote or workforce-intensive locations. The company develops and operates purpose-built workforce accommodations, commonly known as man camps, and provides related services designed to support employees and other residents at these facilities.

Its services may include lodging, dining and catering, housekeeping, laundry, transportation and logistics, facility management, recreation, and other on-site amenities.

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