Target Hospitality (NASDAQ:TH) Stock Price Down 7.6% - Time to Sell?

Key Points

• Target Hospitality shares fell 7.6% to about $19.02, with trading volume below its average. Despite the decline, the stock remains above its 50-day and 200-day moving averages.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $25.20, implying potential upside from the current price; targets range from $23 to $26.
• The company beat quarterly revenue and EPS expectations, while CEO James Archer and another insider recently purchased shares. Institutional ownership stands at 32.4%, including new positions from BlackRock and Senator Investment Group.

Target Hospitality Corp. (NASDAQ:TH - Get Free Report) shares traded down 7.6% on Monday. The company traded as low as $19.15 and last traded at $19.02. 709,526 shares changed hands during mid-day trading, a decline of 41% from the average daily volume of 1,198,929 shares. The stock had previously closed at $20.58.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Northland Securities set a $25.00 price target on Target Hospitality in a report on Thursday, August 27th. Weiss Ratings upgraded Target Hospitality from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, August 21st. Morgan Stanley raised their target price on Target Hospitality from $22.00 to $25.00 and gave the stock an "overweight" rating in a research note on Monday, September 14th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $23.00 price target on shares of Target Hospitality in a report on Thursday, August 27th. Finally, Stifel Nicolaus set a $26.00 price target on shares of Target Hospitality in a research report on Thursday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $25.20.

Target Hospitality Stock Down 6.2%

The firm has a 50-day moving average of $17.83 and a two-hundred day moving average of $16.41. 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 company has a market capitalization of $1.92 billion, a PE ratio of -50.79 and a beta of 1.51.

Target Hospitality (NASDAQ:TH - Get Free Report) last posted its earnings results on Monday, August 10th. The company reported ($0.09) EPS for the quarter, beating analysts' consensus estimates of ($0.11) by $0.02. Target Hospitality had a negative return on equity of 9.80% and a negative net margin of 10.85%.The company had revenue of $85.45 million for the quarter, compared to the consensus estimate of $79.30 million. Equities research analysts predict that Target Hospitality Corp. will post -0.05 earnings per share for the current fiscal year.

Insider Activity

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

Hedge Funds Weigh In On Target Hospitality

A number of hedge funds have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in Target Hospitality during the 2nd quarter valued at about $64,312,000. Senator Investment Group LP purchased a new stake in Target Hospitality during the second quarter worth about $28,491,000. 71 West Capital Partners acquired a new stake in shares of Target Hospitality during the fourth quarter worth about $7,147,000. Bank of New York Mellon Corp acquired a new stake in shares of Target Hospitality during the second quarter worth about $8,140,000. Finally, Bank of America Corp DE purchased a new position in shares of Target Hospitality in the second quarter valued at approximately $7,142,000. Hedge funds and other institutional investors own 32.40% of the company's stock.

Target Hospitality Company Profile

Target Hospitality Corp. NASDAQ: TH provides specialty hospitality and workforce accommodation services in North America. The company supports organizations that require temporary or long-term housing and related services in remote, industrial, government, and other challenging operating environments.

Its offerings include modular and prefabricated accommodations, lodging management, food and catering services, housekeeping, maintenance, transportation, security, and other on-site support.

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