Target Hospitality (NASDAQ:TH) Sees Unusually-High Trading Volume - Should You Buy?

Key Points

• Shares saw heavy trading (465,178 mid-day) and last traded at $15.04, trading well above its 50-day ($9.74) and 200-day ($8.35) moving averages; the company has a market cap of $1.55B and a negative P/E of -40.71.
• Analysts are mostly positive: consensus rating is Moderate Buy with a $16.50 average price target and notable upgrades/target raises (Oppenheimer $18 outperform; Stifel $15 buy).
• Fundamentals are mixed: the most recent quarter missed EPS estimates at ($0.15) vs. ($0.10) consensus and shows negative margins/ROE, although revenue beat expectations at $89.78M vs. $85.20M.

Target Hospitality Corp. (NASDAQ:TH - Get Free Report) shares saw strong trading volume on Monday . 465,178 shares traded hands during mid-day trading, a decline of 26% from the previous session's volume of 628,566 shares.The stock last traded at $15.0410 and had previously closed at $14.84.

Analyst Ratings Changes

Several analysts have commented on the stock. Oppenheimer raised their target price on shares of Target Hospitality from $11.00 to $18.00 and gave the stock an "outperform" rating in a report on Thursday, April 9th. Weiss Ratings reissued a "sell (d)" rating on shares of Target Hospitality in a research report on Friday, March 27th. Wall Street Zen upgraded shares of Target Hospitality from a "sell" rating to a "hold" rating in a report on Saturday, April 4th. Texas Capital raised shares of Target Hospitality from a "hold" rating to a "strong-buy" rating in a research report on Thursday, March 12th. Finally, Stifel Nicolaus reaffirmed a "buy" rating and issued a $15.00 target price (up from $11.00) on shares of Target Hospitality in a research note on Monday, April 6th. One equities 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. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $16.50.

Target Hospitality Stock Performance

The stock has a 50-day moving average of $9.74 and a 200-day moving average of $8.35. The firm has a market cap of $1.55 billion, a price-to-earnings ratio of -40.71 and a beta of 1.12.

Target Hospitality (NASDAQ:TH - Get Free Report) last released its earnings results on Wednesday, March 11th. The company reported ($0.15) earnings per share for the quarter, missing analysts' consensus estimates 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 business had revenue of $89.78 million during the quarter, compared to the consensus estimate of $85.20 million. Sell-side analysts predict that Target Hospitality Corp. will post 0.65 EPS for the current fiscal year.

Insider Buying and Selling 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 sale, the executive vice president owned 131,742 shares of the company's stock, valued at approximately $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 Securities & Exchange Commission, which can be accessed through the SEC website. 3.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Tudor Investment Corp ET AL grew its stake in shares of Target Hospitality by 29.4% in the third quarter. Tudor Investment Corp ET AL now owns 291,903 shares of the company's stock valued at $2,475,000 after buying an additional 66,322 shares in the last quarter. Capelight Capital Asset Management LP bought a new stake in Target Hospitality during the fourth quarter worth $481,000. SG Americas Securities LLC bought a new stake in Target Hospitality during the third quarter worth $166,000. Tripletail Wealth Management LLC acquired a new stake in Target Hospitality in the third quarter valued at $55,000. Finally, Caxton Associates LLP bought a new position in shares of Target Hospitality in the 2nd quarter valued at about $330,000. Institutional investors and hedge funds 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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