Target Hospitality (NASDAQ:TH) Shares Gap Up on Analyst Upgrade

Key Points

• Target Hospitality's stock experienced a significant uptick, opening at $8.87 after Stifel Nicolaus upgraded it from a hold to a buy rating, increasing their price target from $7.50 to $11.00.
• Despite the upgrade, Wall Street Zen downgraded Target Hospitality's rating from "hold" to "sell," though the stock carries an average rating of "buy" and a price target of $13.00.
• Target Hospitality's recent quarterly earnings showed a loss of $0.15 per share, falling short of expectations, but revenue exceeded estimates at $61.61 million.

Target Hospitality Corp. (NASDAQ:TH - Get Free Report)'s stock price gapped up prior to trading on Tuesday after Wall Street Zen upgraded the stock from a sell rating to a hold rating. The stock had previously closed at $8.05, but opened at $8.87. Target Hospitality shares last traded at $8.73, with a volume of 275,668 shares changing hands.

Separately, Stifel Nicolaus raised Target Hospitality from a "hold" rating to a "buy" rating and raised their price objective for the company from $7.50 to $11.00 in a research report on Tuesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, Target Hospitality currently has an average rating of "Buy" and a consensus target price of $13.00.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Conversant Capital LLC lifted its stake in shares of Target Hospitality by 2.1% in the 4th quarter. Conversant Capital LLC now owns 4,889,046 shares of the company's stock valued at $47,253,000 after purchasing an additional 100,000 shares during the period. Rubric Capital Management LP lifted its stake in shares of Target Hospitality by 9.5% in the 2nd quarter. Rubric Capital Management LP now owns 2,189,456 shares of the company's stock valued at $15,589,000 after purchasing an additional 189,456 shares during the period. Appian Way Asset Management LP acquired a new position in shares of Target Hospitality in the 1st quarter valued at about $11,872,000. Philadelphia Financial Management of San Francisco LLC acquired a new position in Target Hospitality during the 1st quarter worth approximately $11,441,000. Finally, Cooper Creek Partners Management LLC acquired a new position in Target Hospitality during the 2nd quarter worth approximately $8,556,000. 32.40% of the stock is owned by institutional investors and hedge funds.

Target Hospitality Trading Up 1.7%

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 business has a 50 day moving average of $7.69 and a two-hundred day moving average of $7.19. The firm has a market capitalization of $898.02 million, a price-to-earnings ratio of 90.00 and a beta of 1.92.

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

Target Hospitality Company Profile

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.