Target Hospitality (NASDAQ:TH) Earns "Buy" Rating from Stifel Nicolaus

Key Points

• Stifel Nicolaus reaffirmed a "Buy" rating on Target Hospitality and raised its price target to $15 (from $11), implying roughly a 10.4% upside; MarketBeat's consensus is a "Moderate Buy" with a $13 target.
• Target reported Q results that missed EPS at ($0.15) vs. ($0.10) expected but beat revenue at $89.78M; the company remains unprofitable (negative net margin and ROE) and the stock trades at $13.59 with a $1.36B market cap.
• Insiders hold about 68% of the stock and an EVP sold 9,000 shares in January, while institutional ownership is ~32.4% with several funds recently increasing or initiating positions.

Target Hospitality (NASDAQ:TH - Get Free Report)'s stock had its "buy" rating restated by investment analysts at Stifel Nicolaus in a research report issued to clients and investors on Monday,Benzinga reports. They currently have a $15.00 price target on the stock, up from their previous price target of $11.00. Stifel Nicolaus' target price would indicate a potential upside of 10.38% from the company's current price.

Other research analysts have also recently issued research reports about the stock. Texas Capital raised Target Hospitality from a "hold" rating to a "strong-buy" rating in a research note on Thursday, March 12th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Target Hospitality in a report on Friday, March 27th. Oppenheimer raised shares of Target Hospitality from a "market perform" rating to an "outperform" rating and set a $11.00 target price on the stock in a report on Tuesday, March 17th. Finally, Wall Street Zen raised shares of Target Hospitality from a "sell" rating to a "hold" rating in a research note on Saturday. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $13.00.

Target Hospitality Trading Down 2.1%

Target Hospitality stock traded down $0.29 during trading on Monday, reaching $13.59. The company had a trading volume of 584,587 shares, compared to its average volume of 588,715. The firm has a market capitalization of $1.36 billion, a price-to-earnings ratio of -35.74 and a beta of 1.12. The firm's 50-day simple moving average is $8.26 and its 200 day simple moving average is $7.94. Target Hospitality has a 52 week low of $5.97 and a 52 week high of $14.13.

Target Hospitality (NASDAQ:TH - Get Free Report) last released its quarterly earnings results on Wednesday, March 11th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.05). Target Hospitality had a negative net margin of 11.58% and a negative return on equity of 8.65%. The company had revenue of $89.78 million for the quarter, compared to the consensus estimate of $85.20 million. On average, analysts predict that Target Hospitality will post 0.65 earnings per share for the current year.

Insider Transactions at Target Hospitality

In other news, EVP Heidi Diane Lewis sold 9,000 shares of the firm's stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $7.34, for a total value of $66,060.00. Following the completion of the sale, the executive vice president owned 131,742 shares in the company, valued at approximately $966,986.28. This trade represents a 6.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 68.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Target Hospitality

A number of institutional investors and hedge funds have recently modified their holdings of the business. Invesco Ltd. lifted its holdings in Target Hospitality by 20.1% during the 4th quarter. Invesco Ltd. now owns 70,385 shares of the company's stock valued at $564,000 after buying an additional 11,793 shares in the last quarter. Mercer Global Advisors Inc. ADV purchased a new position in shares of Target Hospitality during the fourth quarter worth approximately $118,000. Fuller & Thaler Asset Management Inc. purchased a new position in shares of Target Hospitality during the fourth quarter worth approximately $448,000. Empowered Funds LLC raised its stake in shares of Target Hospitality by 34.1% during the fourth quarter. Empowered Funds LLC now owns 216,340 shares of the company's stock valued at $1,733,000 after acquiring an additional 55,046 shares in the last quarter. Finally, Millennium Management LLC purchased a new stake in shares of Target Hospitality in the fourth quarter valued at approximately $167,000. 32.40% of the stock is owned by institutional investors.

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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