Target Hospitality (NASDAQ:TH) Shares Down 7.7% – Time to Sell?

Shares of Target Hospitality Corp. (NASDAQ:TH) dropped 7.7% on Thursday. The company traded as low as $15.98 and last traded at $15.9380. Approximately 1,557,488 shares were traded during mid-day trading, an increase of 22% from the average daily volume of 1,277,880 shares. The stock had previously closed at $17.26.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on TH. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $23.00 price target on shares of Target Hospitality in a research note on Thursday, August 27th. Weiss Ratings upgraded Target Hospitality from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, October 8th. Northland Securities set a $25.00 price objective on Target Hospitality in a research report on Thursday, August 27th. Morgan Stanley boosted their target price on Target Hospitality from $22.00 to $25.00 and gave the stock an “overweight” rating in a research note on Monday, September 14th. Finally, Oppenheimer increased their target price on shares of Target Hospitality from $24.00 to $27.00 and gave the stock an “outperform” rating in a report on Tuesday, September 8th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Target Hospitality currently has a consensus rating of “Buy” and a consensus target price of $25.20.

Target Hospitality Stock Performance

The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.65 and a current ratio of 0.65. The firm has a market cap of $1.58 billion, a P/E ratio of -41.51 and a beta of 1.49. The company’s 50 day moving average is $18.63 and its 200 day moving average is $17.29.

Target Hospitality (NASDAQ:TH) last posted 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 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%. As a group, equities analysts predict that Target Hospitality Corp. will post -0.04 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO James Archer acquired 13,385 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The shares were bought at an average price of $18.69 per share, with a total value of $250,165.65. Following the acquisition, the chief executive officer directly owned 1,845,441 shares in the company, valued at $34,491,292.29. The trade was a 0.73% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Troy Schrenk acquired 5,907 shares of the business’s stock in a transaction that occurred on Friday, September 18th. The shares were purchased at an average cost of $21.16 per share, for a total transaction of $124,992.12. Following the acquisition, the insider owned 216,995 shares in the company, valued at $4,591,614.20. This represents a 2.80% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 3.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Target Hospitality

Hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Target Hospitality in the second quarter valued at approximately $64,312,000. HighTower Advisors LLC raised its holdings in Target Hospitality by 14.9% in the 2nd quarter. HighTower Advisors LLC now owns 1,842,267 shares of the company’s stock valued at $37,509,000 after buying an additional 238,280 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in Target Hospitality by 21.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,428,773 shares of the company’s stock valued at $13,259,000 after buying an additional 252,212 shares during the last quarter. Senator Investment Group LP acquired a new stake in Target Hospitality during the 2nd quarter worth approximately $28,491,000. Finally, Arrowstreet Capital Limited Partnership boosted its position in Target Hospitality by 15.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,081,081 shares of the company’s stock worth $10,032,000 after buying an additional 147,950 shares during the period. 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.