Target Hospitality (NASDAQ:TH) Upgraded by Wall Street Zen to Hold Rating

Key Points

• Wall Street Zen upgraded Target Hospitality from "sell" to "hold," amid mixed analyst views (one Strong Buy, two Buys, one Sell) that produce a MarketBeat consensus of Moderate Buy and an average target price of $11.00.
• Shares opened at $13.88 (near the 52-week high of $13.90) giving a market cap of $1.39 billion, with 50- and 200-day moving averages around $8.26 and $7.95, signaling a recent run-up above longer-term trends.
• Operationally the company shows strain: Q results missed on EPS (‑$0.15 vs. ‑$0.10 est.) though revenue beat at $89.78M, it reports negative ROE and net margin, and insiders own 68% of the stock (an EVP sold 9,000 shares in January).

Target Hospitality (NASDAQ:TH - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

Several other equities research analysts have also commented on the company. Texas Capital upgraded Target Hospitality from a "hold" rating to a "strong-buy" rating in a research report on Thursday, March 12th. Stifel Nicolaus set a $11.00 target price on shares of Target Hospitality in a research note on Wednesday, March 11th. Oppenheimer raised shares of Target Hospitality from a "market perform" rating to an "outperform" rating and set a $11.00 price target on the stock in a report on Tuesday, March 17th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Target Hospitality in a research report on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Target Hospitality has a consensus rating of "Moderate Buy" and an average target price of $11.00.

Target Hospitality Price Performance

Shares of TH stock opened at $13.88 on Friday. The stock has a market cap of $1.39 billion, a PE ratio of -36.53 and a beta of 1.12. The business has a 50-day simple moving average of $8.26 and a 200-day simple moving average of $7.95. Target Hospitality has a 52-week low of $5.97 and a 52-week high of $13.90.

Target Hospitality (NASDAQ:TH - Get Free Report) last issued its earnings results on Wednesday, March 11th. The company reported ($0.15) EPS for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.05). The company had revenue of $89.78 million during the quarter, compared to analysts' expectations of $85.20 million. Target Hospitality had a negative return on equity of 8.65% and a negative net margin of 11.58%. Sell-side analysts anticipate that Target Hospitality will post 0.65 earnings per share for the current fiscal year.

Insider Activity at Target Hospitality

In other news, EVP Heidi Diane Lewis sold 9,000 shares of the business's stock in a transaction that occurred on Tuesday, January 20th. The stock was sold at an average price of $7.34, for a total value of $66,060.00. Following the completion of the sale, the executive vice president directly owned 131,742 shares in the company, valued at $966,986.28. The trade was a 6.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 68.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On Target Hospitality

A number of institutional investors have recently added to or reduced their stakes in TH. Deutsche Bank AG raised its position in Target Hospitality by 4.8% during the fourth quarter. Deutsche Bank AG now owns 33,634 shares of the company's stock worth $269,000 after acquiring an additional 1,526 shares during the period. AdvisorShares Investments LLC grew its position in shares of Target Hospitality by 17.9% in the fourth quarter. AdvisorShares Investments LLC now owns 11,820 shares of the company's stock valued at $95,000 after purchasing an additional 1,798 shares during the period. IFP Advisors Inc grew its position in shares of Target Hospitality by 88.0% in the third quarter. IFP Advisors Inc now owns 4,002 shares of the company's stock valued at $35,000 after purchasing an additional 1,873 shares during the period. Russell Investments Group Ltd. increased its stake in shares of Target Hospitality by 121.5% during the third quarter. Russell Investments Group Ltd. now owns 4,494 shares of the company's stock worth $38,000 after purchasing an additional 2,465 shares in the last quarter. Finally, Rhumbline Advisers increased its stake in shares of Target Hospitality by 6.2% during the second quarter. Rhumbline Advisers now owns 50,373 shares of the company's stock worth $359,000 after purchasing an additional 2,947 shares in the last quarter. 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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