Target Hospitality (NASDAQ:TH) Shares Gap Down - What's Next?

Key Points

• Target Hospitality stock gapped down on Wednesday, opening at $14.83 after a $15.90 close and last trading around $14.745 on unusually high volume (~2.55M shares).
• Analyst sentiment is mixed but tilted positive: MarketBeat's consensus is a Moderate Buy with an average price target of $16.50, and several firms have recently upgraded or raised targets (Oppenheimer to $18, Stifel to $15).
• Fundamentals show weakness—quarterly EPS of -$0.15 missed estimates despite a revenue beat, the company has negative ROE and net margin, and analysts forecast roughly -$0.18 EPS for the year.

Target Hospitality Corp. (NASDAQ:TH - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $15.90, but opened at $14.83. Target Hospitality shares last traded at $14.7450, with a volume of 2,553,159 shares traded.

Wall Street Analysts Forecast Growth

TH has been the subject of several research reports. 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. Weiss Ratings reiterated a "sell (d)" rating on shares of Target Hospitality in a research report on Friday, March 27th. Texas Capital upgraded Target Hospitality from a "hold" rating to a "strong-buy" rating in a research report on Thursday, March 12th. Wall Street Zen upgraded Target Hospitality from a "sell" rating to a "hold" rating in a research note on Saturday, April 4th. Finally, Oppenheimer boosted their target price on shares of Target Hospitality from $11.00 to $18.00 and gave the stock an "outperform" rating in a research report on Thursday, April 9th. 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.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $16.50.

Target Hospitality Stock Performance

The business's 50 day simple moving average is $10.08 and its 200-day simple moving average is $8.46. The company has a market cap of $1.47 billion, a price-to-earnings ratio of -38.57 and a beta of 1.12.

Target Hospitality (NASDAQ:TH - Get Free Report) last announced its quarterly 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). The business had revenue of $89.78 million for the quarter, compared to analyst estimates of $85.20 million. Target Hospitality had a negative return on equity of 8.65% and a negative net margin of 11.58%. Research analysts expect that Target Hospitality Corp. will post -0.18 earnings per share for the current year.

Institutional Trading of Target Hospitality

Institutional investors and hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada boosted its holdings in Target Hospitality by 3,549.2% in the first quarter. Royal Bank of Canada now owns 43,863 shares of the company's stock valued at $289,000 after acquiring an additional 42,661 shares in the last quarter. AQR Capital Management LLC purchased a new stake in shares of Target Hospitality during the first quarter valued at about $114,000. Goldman Sachs Group Inc. grew its stake in shares of Target Hospitality by 104.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 280,288 shares of the company's stock worth $1,844,000 after purchasing an additional 143,505 shares during the period. Empowered Funds LLC acquired a new stake in shares of Target Hospitality during the 1st quarter worth approximately $660,000. Finally, Strs Ohio purchased a new position in shares of Target Hospitality in the first quarter valued at approximately $131,000. Hedge funds and other 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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