Target Hospitality (NASDAQ:TH) Stock Price Down 12.4% - Should You Sell?

Key Points

• Target Hospitality shares fell 12.4% in Wednesday’s mid-day trading, dropping from a prior close of $14.49 to about $12.69; trading volume was roughly 80% below its average.
• Despite the sell-off, analysts’ consensus rating is Moderate Buy, with an average price target of $25.20. Recent targets ranged from $23 to $27, though one analyst rated the stock Sell.
• The company’s latest quarterly results beat estimates for both adjusted loss per share and revenue, and its CEO and another insider recently bought shares.

Target Hospitality Corp. (NASDAQ:TH - Get Free Report)'s share price dropped 12.4% during mid-day trading on Wednesday. The stock traded as low as $12.83 and last traded at $12.6940. Approximately 262,457 shares changed hands during mid-day trading, a decline of 80% from the average daily volume of 1,328,454 shares. The stock had previously closed at $14.49.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Oppenheimer raised their price target on shares of Target Hospitality from $24.00 to $27.00 and gave the company an "outperform" rating in a research report on Tuesday, September 8th. Northland Securities set a $25.00 target price on Target Hospitality in a research note on Thursday, August 27th. Morgan Stanley lifted their target price on Target Hospitality from $22.00 to $25.00 and gave the stock an "overweight" rating in a report on Monday, September 14th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $23.00 price target on shares of Target Hospitality in a research note on Thursday, August 27th. Finally, Stifel Nicolaus set a $26.00 price objective on Target Hospitality in a report on Thursday, August 27th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $25.20.

Target Hospitality Price Performance

The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.11. The stock has a market cap of $1.18 billion, a P/E ratio of -31.42 and a beta of 1.56. The firm has a 50 day moving average price of $17.90 and a 200 day moving average price of $14.76.

Target Hospitality (NASDAQ:TH - Get Free Report) last released its earnings results on Monday, August 10th. The company reported ($0.09) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.11) by $0.02. Target Hospitality had a negative net margin of 10.85% and a negative return on equity of 9.80%. The company had revenue of $85.45 million during the quarter, compared to analyst estimates of $79.30 million. On average, analysts forecast that Target Hospitality Corp. will post -0.04 EPS for the current fiscal year.

Insider Buying and Selling at Target Hospitality

In other Target Hospitality news, CEO James Archer purchased 13,385 shares of the firm's stock in a transaction on Tuesday, September 15th. The shares were acquired at an average cost of $18.69 per share, with a total value of $250,165.65. Following the completion of the acquisition, the chief executive officer directly owned 1,845,441 shares in the company, valued at $34,491,292.29. The trade was a 0.73% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Troy C. Schrenk purchased 5,907 shares of the firm's stock in a transaction on Friday, September 18th. The shares were acquired at an average cost of $21.16 per share, for a total transaction of $124,992.12. Following the completion of the acquisition, the insider 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 ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 3.80% of the stock is owned by company insiders.

Institutional Trading of Target Hospitality

Several institutional investors and hedge funds have recently added to or reduced their stakes in TH. BlackRock Inc. bought a new position in Target Hospitality during the second quarter valued at approximately $64,312,000. Hsbc Holdings PLC bought a new stake in Target Hospitality in the 2nd quarter worth approximately $1,506,000. Bank of America Corp DE bought a new stake in Target Hospitality in the 2nd quarter worth approximately $7,142,000. Bank of New York Mellon Corp purchased a new stake in shares of Target Hospitality during the 2nd quarter worth approximately $8,140,000. Finally, Arrowstreet Capital Limited Partnership boosted its position in shares of Target Hospitality by 15.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,081,081 shares of the company's stock valued at $10,032,000 after acquiring an additional 147,950 shares during the last quarter. Institutional investors 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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