Target Hospitality (NASDAQ:TH) Trading 11% Higher - What's Next?

Key Points

• Target Hospitality shares jumped about 11% to roughly $18.62, with trading volume below average. The stock is up strongly relative to its 50-day and 200-day moving averages.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $24.00; recent targets range from $22 to $26.
• The company exceeded quarterly expectations, reporting revenue of $85.45 million and an adjusted EPS loss of $0.09 versus the projected $0.11 loss. However, it remains unprofitable, with a negative net margin and return on equity.

Target Hospitality Corp. (NASDAQ:TH - Get Free Report) shares were up 11% on Thursday . The company traded as high as $18.85 and last traded at $18.6180. Approximately 317,991 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 1,048,970 shares. The stock had previously closed at $16.78.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on TH. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $23.00 price objective on shares of Target Hospitality in a research note on Thursday. Morgan Stanley assumed coverage on shares of Target Hospitality in a research note on Monday, August 17th. They issued an "overweight" rating and a $22.00 price target for the company. Northland Securities set a $25.00 price target on shares of Target Hospitality in a research report on Thursday. Stifel Nicolaus set a $26.00 price objective on Target Hospitality in a research note on Thursday. Finally, Weiss Ratings upgraded Target Hospitality from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, August 21st. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $24.00.

Target Hospitality Stock Up 12.8%

The stock has a market cap of $1.89 billion, a P/E ratio of -50.02 and a beta of 1.49. 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 50-day simple moving average of $17.47 and a two-hundred day simple moving average of $14.50.

Target Hospitality (NASDAQ:TH - Get Free Report) last issued 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 firm had revenue of $85.45 million for the quarter, compared to analysts' expectations of $79.30 million. On average, equities analysts forecast that Target Hospitality Corp. will post -0.2 EPS for the current year.

Institutional Investors Weigh In On Target Hospitality

A number of large investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP raised its holdings in shares of Target Hospitality by 21.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,428,773 shares of the company's stock valued at $13,259,000 after acquiring an additional 252,212 shares in the last quarter. 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 valued at $10,032,000 after acquiring an additional 147,950 shares in the last quarter. Nicholas Investment Partners LP bought a new stake in Target Hospitality in the second quarter valued at $5,489,000. Kore Advisors LP increased its position in Target Hospitality by 30.9% during the 4th quarter. Kore Advisors LP now owns 425,213 shares of the company's stock valued at $3,406,000 after purchasing an additional 100,418 shares during the period. Finally, 71 West Capital Partners purchased a new position in Target Hospitality during the 4th quarter valued at $7,147,000. Institutional investors own 32.40% of the company's stock.

About Target Hospitality

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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