Target Hospitality (NASDAQ:TH) Hits New 1-Year High - Should You Buy?

Key Points

• Target Hospitality hit a new 52-week high, trading as high as $12.30 and last at $12.5350 (up ~34%) on volume of ~1.48M shares, giving it a market cap of about $1.25 billion.
• Analysts are mixed but the consensus is a “Moderate Buy” with a $11.00 price target, even though several firms have both upgraded and downgraded the stock recently.
• The company reported a quarterly EPS miss (‑$0.15 vs. estimate ‑$0.10) despite revenue beating estimates ($89.78M vs. $85.20M), has negative profitability metrics, and insiders still control about 68% of shares after a recent executive sale.

Target Hospitality Corp. (NASDAQ:TH - Get Free Report)'s stock price hit a new 52-week high during trading on Wednesday . The stock traded as high as $12.30 and last traded at $12.5350, with a volume of 1475413 shares changing hands. The stock had previously closed at $9.28.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. Wall Street Zen downgraded shares of Target Hospitality from a "hold" rating to a "sell" rating in a research note on Saturday, March 14th. Texas Capital raised Target Hospitality from a "hold" rating to a "strong-buy" rating in a research note on Thursday, March 12th. Stifel Nicolaus set a $11.00 price target on Target Hospitality in a report on Wednesday, March 11th. Weiss Ratings restated a "sell (d)" rating on shares of Target Hospitality in a report on Friday. Finally, Oppenheimer raised Target Hospitality from a "market perform" rating to an "outperform" rating and set a $11.00 price objective on the stock in a research report on Tuesday, March 17th. One research 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 stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $11.00.

Target Hospitality Stock Up 34.0%

The stock has a market cap of $1.25 billion, a P/E ratio of -32.67 and a beta of 1.36. The company's 50 day moving average price is $7.91 and its two-hundred day moving average price is $7.84.

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

Insider Activity at Target Hospitality

In related news, EVP Heidi Diane Lewis sold 9,000 shares of Target Hospitality stock in a transaction dated Tuesday, January 20th. The stock was 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 directly owned 131,742 shares in the company, valued at $966,986.28. The trade was a 6.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate insiders own 68.00% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in TH. Royal Bank of Canada raised its holdings in shares of Target Hospitality by 3,549.2% in the 1st quarter. Royal Bank of Canada now owns 43,863 shares of the company's stock valued at $289,000 after purchasing an additional 42,661 shares in the last quarter. AQR Capital Management LLC bought a new position in shares of Target Hospitality during the first quarter valued at approximately $114,000. Goldman Sachs Group Inc. boosted its stake in shares of Target Hospitality by 104.9% during the first quarter. Goldman Sachs Group Inc. now owns 280,288 shares of the company's stock valued at $1,844,000 after purchasing an additional 143,505 shares in the last quarter. Empowered Funds LLC purchased a new position in Target Hospitality during the first quarter valued at approximately $660,000. Finally, Strs Ohio purchased a new position in Target Hospitality during the first quarter valued at approximately $131,000. Hedge funds and other institutional investors own 32.40% of the company's stock.

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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