Target Hospitality (NASDAQ:TH) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Target Hospitality has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, reflecting a negative outlook from analysts.
• The company's stock price has experienced a slight increase, currently trading at $7.91, with a 12-month high of $11.10 and a low of $4.00.
• Target Hospitality reported earnings with a loss of ($0.15) per share, falling short of expectations, although revenue for the quarter was higher than anticipated at $61.61 million.

Target Hospitality (NASDAQ:TH - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Friday.

Other research analysts have also issued research reports about the stock. Weiss Ratings restated a "sell (d+)" rating on shares of Target Hospitality in a research note on Saturday, September 27th. Stifel Nicolaus upgraded shares of Target Hospitality from a "hold" rating to a "buy" rating and upped their price target for the company from $7.50 to $11.00 in a research note on Tuesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Target Hospitality presently has a consensus rating of "Moderate Buy" and an average target price of $13.00.

Target Hospitality Stock Up 0.3%

NASDAQ:TH traded up $0.02 during midday trading on Friday, reaching $7.91. 340,242 shares of the stock traded hands, compared to its average volume of 392,056. Target Hospitality has a 12-month low of $4.00 and a 12-month high of $11.10. The business has a 50-day moving average of $8.44 and a two-hundred day moving average of $7.51. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.47 and a current ratio of 1.47. The stock has a market capitalization of $789.26 million, a PE ratio of 79.10 and a beta of 1.92.

Target Hospitality (NASDAQ:TH - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.15) EPS for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.04). Target Hospitality had a net margin of 3.58% and a return on equity of 3.26%. The firm had revenue of $61.61 million for the quarter, compared to analysts' expectations of $56.43 million. Target Hospitality has set its FY 2025 guidance at EPS. On average, equities analysts forecast that Target Hospitality will post 0.65 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Heidi Diane Lewis sold 12,256 shares of the stock in a transaction on Monday, September 22nd. The shares were sold at an average price of $8.71, for a total value of $106,749.76. Following the sale, the executive vice president owned 172,198 shares in the company, valued at $1,499,844.58. This represents a 6.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Troy C. Schrenk sold 49,344 shares of the stock in a transaction on Thursday, September 18th. The stock was sold at an average price of $8.58, for a total transaction of $423,371.52. Following the completion of the sale, the executive vice president owned 174,553 shares in the company, valued at $1,497,664.74. The trade was a 22.04% decrease in their position. The disclosure for this sale can be found here. 68.00% of the stock is owned by corporate insiders.

Institutional Trading of Target Hospitality

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TH. AdvisorNet Financial Inc grew its position in Target Hospitality by 1,305.4% during the second quarter. AdvisorNet Financial Inc now owns 4,160 shares of the company's stock valued at $30,000 after buying an additional 3,864 shares during the period. Royce & Associates LP grew its position in Target Hospitality by 44.0% during the first quarter. Royce & Associates LP now owns 15,783 shares of the company's stock valued at $104,000 after buying an additional 4,819 shares during the period. Two Sigma Advisers LP acquired a new stake in Target Hospitality during the fourth quarter valued at $105,000. EntryPoint Capital LLC acquired a new stake in Target Hospitality during the first quarter valued at $108,000. Finally, AQR Capital Management LLC acquired a new stake in Target Hospitality during the first quarter valued at $114,000. Institutional investors and hedge funds own 32.40% of the company's stock.

About Target Hospitality

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through two segments, Hospitality & Facilities Services - South and Government. It owns a network of specialty rental accommodation units. In addition, the company provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services.

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