Target Hospitality (NASDAQ:TH) Shares Gap Down on Disappointing Earnings

Target Hospitality Corp. (NASDAQ:TH) gapped down before the market opened on Monday following a weaker than expected earnings announcement. The stock had previously closed at $7.10, but opened at $6.39. Target Hospitality shares last traded at $7.13, with a volume of 149,080 shares traded.

The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.03). Target Hospitality had a return on equity of 22.80% and a net margin of 20.84%. The business had revenue of $69.90 million for the quarter, compared to analysts’ expectations of $65.37 million. During the same quarter in the prior year, the firm earned $0.20 earnings per share. Target Hospitality’s revenue for the quarter was down 34.5% compared to the same quarter last year.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on TH. Northland Securities upgraded shares of Target Hospitality from a “market perform” rating to an “outperform” rating and lifted their price target for the stock from $11.00 to $15.00 in a research note on Wednesday, January 29th. Stifel Nicolaus upped their target price on shares of Target Hospitality from $5.00 to $7.50 and gave the company a “hold” rating in a research note on Monday, March 31st. Finally, Northland Capmk upgraded Target Hospitality from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, January 29th.

Institutional Trading of Target Hospitality

Several hedge funds have recently made changes to their positions in the stock. AlphaQuest LLC boosted its holdings in shares of Target Hospitality by 275.9% during the fourth quarter. AlphaQuest LLC now owns 4,578 shares of the company’s stock valued at $44,000 after acquiring an additional 3,360 shares during the period. Maridea Wealth Management LLC bought a new position in Target Hospitality in the 4th quarter worth about $103,000. Two Sigma Advisers LP acquired a new stake in shares of Target Hospitality in the fourth quarter valued at approximately $105,000. XTX Topco Ltd bought a new stake in shares of Target Hospitality during the fourth quarter valued at approximately $113,000. Finally, Price T Rowe Associates Inc. MD raised its holdings in shares of Target Hospitality by 15.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 12,318 shares of the company’s stock valued at $119,000 after buying an additional 1,650 shares during the last quarter. Institutional investors own 32.40% of the company’s stock.

Target Hospitality Stock Down 2.8%

The firm has a market capitalization of $720.39 million, a price-to-earnings ratio of 8.33, a P/E/G ratio of 1.81 and a beta of 1.89. The company has a 50-day moving average price of $6.63 and a 200-day moving average price of $7.98.

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.