Target Hospitality (NASDAQ:TH) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen has downgraded Target Hospitality (NASDAQ:TH) from a "hold" rating to a "sell" rating.
• Despite reporting revenue of $69.90 million for the last quarter, the company posted a net margin of only 3.58% and missed earnings expectations by $0.03.
• Target Hospitality's stock has seen significant investor activity, with large stakeholders increasing their holdings dramatically in recent quarters.

Wall Street Zen cut shares of Target Hospitality (NASDAQ:TH - Free Report) from a hold rating to a sell rating in a report published on Saturday.

Target Hospitality Trading Down 0.6%

TH traded down $0.05 during midday trading on Friday, reaching $8.12. 353,778 shares of the company's stock traded hands, compared to its average volume of 611,937. The firm has a fifty day moving average of $7.44 and a two-hundred day moving average of $7.25. The stock has a market capitalization of $806.80 million, a price-to-earnings ratio of 81.20 and a beta of 1.92. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.97 and a quick ratio of 1.97. Target Hospitality has a 52 week low of $4.00 and a 52 week high of $11.10.

Target Hospitality (NASDAQ:TH - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported ($0.15) EPS for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.04). The business had revenue of $61.61 million for 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 3.22%. On average, equities analysts anticipate that Target Hospitality will post 0.65 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in TH. AdvisorNet Financial Inc raised its position in shares of Target Hospitality by 1,305.4% in the 2nd quarter. AdvisorNet Financial Inc now owns 4,160 shares of the company's stock worth $30,000 after acquiring an additional 3,864 shares in the last quarter. Royce & Associates LP raised its position in shares of Target Hospitality by 44.0% in the 1st quarter. Royce & Associates LP now owns 15,783 shares of the company's stock worth $104,000 after acquiring an additional 4,819 shares in the last quarter. Two Sigma Advisers LP bought a new position in shares of Target Hospitality in the 4th quarter worth approximately $105,000. EntryPoint Capital LLC bought a new position in shares of Target Hospitality in the 1st quarter worth approximately $108,000. Finally, XTX Topco Ltd bought a new position in shares of Target Hospitality in the 4th quarter worth approximately $113,000. Institutional investors own 32.40% of the company's stock.

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.