Target Hospitality (NASDAQ:TH) Shares Gap Down – Time to Sell?

Target Hospitality Corp. (NASDAQ:TH) gapped down before the market opened on Friday. The stock had previously closed at $20.48, but opened at $19.16. Target Hospitality shares last traded at $18.9750, with a volume of 2,319,698 shares changing hands.

Analysts Set New Price Targets

A number of brokerages have recently commented on TH. Northland Securities set a $25.00 price target on Target Hospitality in a research report on Thursday, August 27th. Oppenheimer raised their price objective on Target Hospitality from $24.00 to $27.00 and gave the company an “outperform” rating in a research report on Tuesday, September 8th. Weiss Ratings upgraded Target Hospitality from a “sell (d)” rating to a “sell (d+)” rating in a research note on Friday, August 21st. Morgan Stanley boosted their target price on Target Hospitality from $22.00 to $25.00 and gave the stock an “overweight” rating in a report on Monday, September 14th. Finally, Stifel Nicolaus set a $26.00 target price on Target Hospitality in a research note on Thursday, August 27th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $25.20.

Target Hospitality Price Performance

The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.11. The firm has a market capitalization of $1.87 billion, a PE ratio of -49.43 and a beta of 1.49. The firm’s fifty day simple moving average is $18.08 and its 200-day simple moving average is $16.71.

Target Hospitality (NASDAQ:TH) last posted its quarterly earnings results on Monday, August 10th. The company reported ($0.09) EPS for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.02. The firm had revenue of $85.45 million for the quarter, compared to analysts’ expectations of $79.30 million. Target Hospitality had a negative net margin of 10.85% and a negative return on equity of 9.80%. On average, research analysts forecast that Target Hospitality Corp. will post -0.05 earnings per share for the current fiscal year.

Insider Activity at Target Hospitality

In other Target Hospitality news, CEO James Archer bought 13,385 shares of the business’s stock in a transaction on Tuesday, September 15th. The shares were acquired at an average cost of $18.69 per share, for a total transaction of $250,165.65. Following the purchase, the chief executive officer owned 1,845,441 shares in the company, valued at approximately $34,491,292.29. This trade represents a 0.73% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Troy Schrenk bought 5,907 shares of Target Hospitality stock in a transaction on Friday, September 18th. The stock was acquired at an average cost of $21.16 per share, with a total value of $124,992.12. Following the acquisition, the insider owned 216,995 shares in the company, valued at approximately $4,591,614.20. This represents a 2.80% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 3.80% of the company’s stock.

Institutional Investors Weigh In On Target Hospitality

Large investors have recently bought and sold shares of the business. WINTON GROUP Ltd purchased a new position in Target Hospitality in the 2nd quarter worth about $1,498,000. HighTower Advisors LLC lifted its stake in Target Hospitality by 14.9% during the 2nd quarter. HighTower Advisors LLC now owns 1,842,267 shares of the company’s stock valued at $37,509,000 after acquiring an additional 238,280 shares during the period. AXQ Capital LP purchased a new stake in shares of Target Hospitality during the 2nd quarter valued at about $471,000. Senator Investment Group LP purchased a new stake in shares of Target Hospitality during the 2nd quarter valued at about $28,491,000. Finally, Moore Capital Management LP bought a new stake in shares of Target Hospitality in the second quarter worth approximately $509,000. 32.40% of the stock is currently owned by institutional investors.

About Target Hospitality

Target Hospitality Corporation (NASDAQ: TH) is a provider of vertically integrated hospitality and support services for organizations operating in remote or workforce-intensive locations. The company develops and operates purpose-built workforce accommodations, commonly known as man camps, and provides related services designed to support employees and other residents at these facilities.

Its services may include lodging, dining and catering, housekeeping, laundry, transportation and logistics, facility management, recreation, and other on-site amenities.