Target Hospitality (NASDAQ:TH) Downgraded to Sell Rating by 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 downgraded shares of Target Hospitality (NASDAQ:TH - Free Report) from a hold rating to a sell rating in a research note issued to investors on Saturday.

Target Hospitality Stock Down 1.7%

NASDAQ:TH traded down $0.14 during midday trading on Friday, reaching $7.94. The company had a trading volume of 87,258 shares, compared to its average volume of 609,601. The firm has a market capitalization of $788.42 million, a price-to-earnings ratio of 79.36 and a beta of 1.92. The stock's fifty day simple moving average is $7.46 and its 200-day simple moving average is $7.25. Target Hospitality has a 12-month low of $4.00 and a 12-month high of $11.10. The company has a current ratio of 1.47, a quick ratio of 1.97 and a debt-to-equity ratio of 0.07.

Target Hospitality (NASDAQ:TH - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.15) earnings per share (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 analysts' expectations of $56.43 million. Target Hospitality had a return on equity of 3.26% and a net margin of 3.58%. On average, sell-side analysts anticipate that Target Hospitality will post 0.65 earnings per share for the current fiscal year.

Institutional Trading of Target Hospitality

A number of institutional investors have recently bought and sold shares of the business. SummerHaven Investment Management LLC lifted its holdings in shares of Target Hospitality by 1.7% in the 1st quarter. SummerHaven Investment Management LLC now owns 89,337 shares of the company's stock valued at $588,000 after purchasing an additional 1,493 shares during the last quarter. Rhumbline Advisers lifted its holdings in shares of Target Hospitality by 3.3% in the 1st quarter. Rhumbline Advisers now owns 47,426 shares of the company's stock valued at $312,000 after purchasing an additional 1,515 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in shares of Target Hospitality by 15.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 12,318 shares of the company's stock valued at $119,000 after purchasing an additional 1,650 shares during the last quarter. Inspire Investing LLC lifted its holdings in shares of Target Hospitality by 3.7% in the 2nd quarter. Inspire Investing LLC now owns 54,191 shares of the company's stock valued at $386,000 after purchasing an additional 1,951 shares during the last quarter. Finally, Deutsche Bank AG lifted its holdings in shares of Target Hospitality by 7.1% in the 1st quarter. Deutsche Bank AG now owns 41,403 shares of the company's stock valued at $272,000 after purchasing an additional 2,741 shares during the last quarter. 32.40% of the stock is owned by hedge funds and other institutional investors.

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.