Target Hospitality (NASDAQ:TH) Shares Gap Down – Should You Sell?

Shares of Target Hospitality Corp. (NASDAQ:TH) gapped down prior to trading on Wednesday . The stock had previously closed at $20.25, but opened at $18.75. Target Hospitality shares last traded at $19.37, with a volume of 4,181,984 shares.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Oppenheimer boosted their price objective on Target Hospitality from $24.00 to $27.00 and gave the stock an “outperform” rating in a research note on Tuesday. Weiss Ratings upgraded Target Hospitality from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday, August 21st. Stifel Nicolaus set a $26.00 price target on Target Hospitality in a research note on Thursday, August 27th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $23.00 price target on shares of Target Hospitality in a research report on Thursday, August 27th. Finally, Northland Securities set a $25.00 price objective on Target Hospitality in a research note on Thursday, August 27th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $24.60.

Target Hospitality Stock Performance

The company has a market cap of $1.88 billion, a price-to-earnings ratio of -49.75 and a beta of 1.51. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.11. The stock’s fifty day simple moving average is $17.23 and its 200 day simple moving average is $15.25.

Target Hospitality (NASDAQ:TH) last released its earnings results on Monday, August 10th. The company reported ($0.09) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.11) by $0.02. The business had revenue of $85.45 million for the quarter, compared to analyst estimates of $79.30 million. Target Hospitality had a negative net margin of 10.85% and a negative return on equity of 9.80%. As a group, analysts anticipate that Target Hospitality Corp. will post -0.08 earnings per share for the current year.

Hedge Funds Weigh In On Target Hospitality

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Quantbot Technologies LP purchased a new stake in Target Hospitality in the 2nd quarter valued at $27,000. IFP Advisors Inc raised its holdings in shares of Target Hospitality by 88.0% during the 3rd quarter. IFP Advisors Inc now owns 4,002 shares of the company’s stock worth $35,000 after acquiring an additional 1,873 shares during the period. Russell Investments Group Ltd. raised its holdings in shares of Target Hospitality by 121.5% during the 3rd quarter. Russell Investments Group Ltd. now owns 4,494 shares of the company’s stock worth $38,000 after acquiring an additional 2,465 shares during the period. Galaxy Digital Capital Management GP LLC acquired a new position in shares of Target Hospitality during the 1st quarter valued at about $67,000. Finally, Tripletail Wealth Management LLC boosted its position in shares of Target Hospitality by 62.2% during the 4th quarter. Tripletail Wealth Management LLC now owns 11,630 shares of the company’s stock valued at $93,000 after acquiring an additional 4,460 shares during the last quarter. Institutional investors and hedge funds own 32.40% of the company’s stock.

About Target Hospitality

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.