Target Hospitality (NASDAQ:TH) Shares Gap Up After 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) gapped up before the market opened on Tuesday after Stifel Nicolaus upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $8.05, but opened at $8.87. Stifel Nicolaus now has a $11.00 price target on the stock, up from their previous price target of $7.50. Target Hospitality shares last traded at $8.73, with a volume of 275,668 shares traded.

Separately, Wall Street Zen lowered Target Hospitality from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. One 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 stock. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $13.00.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in TH. SummerHaven Investment Management LLC raised its stake in Target Hospitality by 1.7% during the 1st quarter. SummerHaven Investment Management LLC now owns 89,337 shares of the company's stock worth $588,000 after buying an additional 1,493 shares during the period. Rhumbline Advisers raised its stake in Target Hospitality by 3.3% during the 1st quarter. Rhumbline Advisers now owns 47,426 shares of the company's stock worth $312,000 after buying an additional 1,515 shares during the period. Price T Rowe Associates Inc. MD raised its stake in Target Hospitality by 15.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 12,318 shares of the company's stock worth $119,000 after buying an additional 1,650 shares during the period. Inspire Investing LLC raised its stake in Target Hospitality by 3.7% during the 2nd quarter. Inspire Investing LLC now owns 54,191 shares of the company's stock worth $386,000 after buying an additional 1,951 shares during the period. Finally, Deutsche Bank AG raised its stake in Target Hospitality by 7.1% during the 1st quarter. Deutsche Bank AG now owns 41,403 shares of the company's stock worth $272,000 after buying an additional 2,741 shares during the period. Institutional investors and hedge funds own 32.40% of the company's stock.

Target Hospitality Price Performance

The firm has a market cap of $906.50 million, a price-to-earnings ratio of 91.20 and a beta of 1.92. The company has a current ratio of 1.47, a quick ratio of 1.47 and a debt-to-equity ratio of 0.07. The company has a 50 day moving average of $7.65 and a 200 day moving average of $7.21.

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

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.