Target Hospitality (NASDAQ:TH) Shares Gap Down - What's Next?

Key Points

• Target Hospitality shares opened sharply lower, at $10.37 versus the prior close of $11.36, and were last trading at $10.95.
• Analyst views were mixed: the stock carried a “Moderate Buy” consensus and a $25.20 average price target, while Weiss Ratings downgraded it to Sell.
• The company reported a quarterly loss of $0.09 per share, but revenue of $129.06 million exceeded analyst estimates of $118.35 million. The CEO and another insider also reported stock purchases.

Target Hospitality Corp. (NASDAQ:TH - Get Free Report)'s stock price gapped down prior to trading on Monday. The stock had previously closed at $11.36, but opened at $10.37. Target Hospitality shares last traded at $10.9520, with a volume of 817,638 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on TH shares. Morgan Stanley increased their target price on shares of Target Hospitality from $22.00 to $25.00 and gave the stock an "overweight" rating in a research note on Monday, September 14th. Weiss Ratings cut Target Hospitality from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, October 23rd. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $23.00 price target on shares of Target Hospitality in a research report on Thursday, August 27th. Stifel Nicolaus set a $26.00 price objective on Target Hospitality in a research note on Thursday, August 27th. Finally, Northland Securities set a $25.00 price objective on Target Hospitality in a research report on Thursday, August 27th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $25.20.

Target Hospitality Trading Down 4.3%

The business's 50-day moving average is $17.50 and its two-hundred day moving average is $14.81. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.65 and a current ratio of 0.65. The stock has a market capitalization of $1.08 billion, a PE ratio of -28.57 and a beta of 1.56.

Target Hospitality (NASDAQ:TH - Get Free Report) last announced its quarterly earnings data on Monday, November 9th. The company reported ($0.09) earnings per share (EPS) for the quarter. Target Hospitality had a negative net margin of 10.85% and a negative return on equity of 9.80%. The firm had revenue of $129.06 million during the quarter, compared to analyst estimates of $118.35 million. As a group, equities research analysts anticipate that Target Hospitality Corp. will post -0.04 earnings per share for the current year.

Insider Transactions at Target Hospitality

In other news, insider Troy C. Schrenk purchased 5,907 shares of the business's stock in a transaction that occurred on Friday, September 18th. The stock was purchased at an average cost of $21.16 per share, with a total value of $124,992.12. Following the completion of the acquisition, the insider directly owned 216,995 shares of the company's stock, valued at approximately $4,591,614.20. This trade represents a 2.80% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO James Archer acquired 13,385 shares of Target Hospitality stock in a transaction that occurred on Tuesday, September 15th. The stock was purchased at an average price of $18.69 per share, with a total value of $250,165.65. Following the transaction, 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. Insiders own 3.80% of the company's stock.

Hedge Funds Weigh In On Target Hospitality

Several institutional investors and hedge funds have recently added to or reduced their stakes in TH. BlackRock Inc. acquired a new stake in shares of Target Hospitality in the second quarter valued at about $64,312,000. HighTower Advisors LLC boosted its holdings in Target Hospitality by 14.9% during the second quarter. HighTower Advisors LLC now owns 1,842,267 shares of the company's stock worth $37,509,000 after buying an additional 238,280 shares in the last quarter. Senator Investment Group LP acquired a new position in Target Hospitality during the second quarter worth about $28,491,000. Dimensional Fund Advisors LP grew its position in Target Hospitality by 21.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,428,773 shares of the company's stock worth $13,259,000 after buying an additional 252,212 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its position in Target Hospitality by 15.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,081,081 shares of the company's stock worth $10,032,000 after buying an additional 147,950 shares during the period. Institutional investors and hedge funds own 32.40% of the company's stock.

Target Hospitality Company Profile

Target Hospitality Corp. NASDAQ: TH provides specialty rental and hospitality services for organizations that require temporary or long-term workforce housing. The company develops and operates workforce accommodation communities and related facilities, offering an integrated alternative to traditional hotels or permanent housing in locations where lodging infrastructure is limited.

Its services generally include furnished lodging, food services, housekeeping, laundry, transportation, maintenance, recreation and other facility-management support.

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