Target Hospitality (NASDAQ:TH) Shares Gap Up - Should You Buy?

Key Points

• Target Hospitality shares gapped higher, opening at $18.35 versus the previous close of $17.39, and last traded near $18.05.
• Analyst sentiment is generally positive: the stock has a “Moderate Buy” consensus rating and a $21.40 average price target, implying potential upside from recent levels.
• The company beat quarterly expectations, reporting an adjusted loss of $0.09 per share versus the projected $0.11 loss and revenue of $85.45 million versus the $79.30 million estimate. However, it continues to report negative net margins and return on equity.

Shares of Target Hospitality Corp. (NASDAQ:TH - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $17.39, but opened at $18.35. Target Hospitality shares last traded at $18.0520, with a volume of 329,303 shares.

Analyst Ratings Changes

A number of research analysts have issued reports on TH shares. Northland Securities set a $24.00 target price on shares of Target Hospitality in a research note on Tuesday, August 11th. Deutsche Bank Aktiengesellschaft upgraded shares of Target Hospitality from a "hold" rating to a "buy" rating and set a $22.00 price target on the stock in a research note on Thursday, August 20th. Oppenheimer lifted their price target on Target Hospitality from $21.00 to $24.00 and gave the company an "outperform" rating in a report on Tuesday, July 14th. Weiss Ratings upgraded Target Hospitality from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday. Finally, Morgan Stanley began coverage on Target Hospitality in a report on Monday, August 17th. They issued an "overweight" rating and a $22.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Target Hospitality presently has a consensus rating of "Moderate Buy" and a consensus price target of $21.40.

Target Hospitality Trading Down 0.2%

The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.11. The firm has a 50-day moving average price of $17.52 and a 200-day moving average price of $14.43. The company has a market capitalization of $1.73 billion, a price-to-earnings ratio of -45.95 and a beta of 1.49.

Target Hospitality (NASDAQ:TH - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The company reported ($0.09) earnings per share for the quarter, beating the consensus estimate of ($0.11) by $0.02. The business had revenue of $85.45 million during the quarter, compared to analyst estimates of $79.30 million. Target Hospitality had a negative return on equity of 9.80% and a negative net margin of 10.85%. As a group, sell-side analysts predict that Target Hospitality Corp. will post -0.2 EPS for the current year.

Institutional Investors Weigh In On Target Hospitality

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Quantbot Technologies LP bought a new stake in shares of Target Hospitality in the 2nd quarter worth approximately $27,000. IFP Advisors Inc boosted its holdings in Target Hospitality by 88.0% during the third quarter. IFP Advisors Inc now owns 4,002 shares of the company's stock worth $35,000 after buying an additional 1,873 shares in the last quarter. Russell Investments Group Ltd. boosted its holdings in Target Hospitality by 121.5% during the third quarter. Russell Investments Group Ltd. now owns 4,494 shares of the company's stock worth $38,000 after buying an additional 2,465 shares in the last quarter. Galaxy Digital Capital Management GP LLC acquired a new position in Target Hospitality in the first quarter worth approximately $67,000. Finally, Tripletail Wealth Management LLC grew its position in Target Hospitality by 62.2% in the fourth quarter. Tripletail Wealth Management LLC now owns 11,630 shares of the company's stock worth $93,000 after buying an additional 4,460 shares during the last quarter. 32.40% of the stock is owned by institutional investors and hedge funds.

Target Hospitality Company Profile

Target Hospitality is a lodging solutions provider specializing in the ownership and operation of modular workforce housing communities across North America. The company serves large-scale clients in the energy, mining, construction and government sectors that require temporary or long-term accommodations for remote workforces. Its housing portfolio includes suite-style units, single-family cabins and “man-camp” dormitories, designed to match project size, duration and workforce composition.

In addition to lodging, Target Hospitality delivers integrated support services such as on-site dining and culinary management, housekeeping, maintenance, facility management and logistics planning.

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