Target Hospitality (NASDAQ:TH) Trading 11% Higher – Should You Buy?

Shares of Target Hospitality Corp. (NASDAQ:TH) traded up 11% on Thursday . The company traded as high as $18.85 and last traded at $18.6180. Approximately 317,991 shares changed hands during mid-day trading, a decline of 70% from the average session volume of 1,048,970 shares. The stock had previously closed at $16.78.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Morgan Stanley started coverage on shares of Target Hospitality in a research note on Monday, August 17th. They issued an “overweight” rating and a $22.00 price objective for the company. Northland Securities set a $25.00 price target on Target Hospitality in a research report on Thursday. Stifel Nicolaus set a $26.00 price objective on Target Hospitality in a research note on Thursday. Weiss Ratings raised Target Hospitality from a “sell (d)” rating to a “sell (d+)” rating in a research note on Friday, August 21st. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $23.00 target price on shares of Target Hospitality in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $24.00.

Target Hospitality Stock Performance

The stock has a market capitalization of $1.85 billion, a PE ratio of -48.82 and a beta of 1.49. The business’s 50 day moving average is $17.42 and its 200 day moving average is $14.61. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.11.

Target Hospitality (NASDAQ:TH) last announced its quarterly earnings data on Monday, August 10th. The company reported ($0.09) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.11) by $0.02. Target Hospitality had a negative net margin of 10.85% and a negative return on equity of 9.80%. The business had revenue of $85.45 million during the quarter, compared to the consensus estimate of $79.30 million. On average, equities research analysts predict that Target Hospitality Corp. will post -0.2 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Target Hospitality

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TH. Dimensional Fund Advisors LP increased its position in shares of Target Hospitality by 21.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,428,773 shares of the company’s stock worth $13,259,000 after acquiring an additional 252,212 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Target Hospitality by 15.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,081,081 shares of the company’s stock valued at $10,032,000 after purchasing an additional 147,950 shares during the period. Nicholas Investment Partners LP purchased a new position in Target Hospitality during the 2nd quarter worth $5,489,000. Kore Advisors LP raised its position in Target Hospitality by 30.9% during the 4th quarter. Kore Advisors LP now owns 425,213 shares of the company’s stock valued at $3,406,000 after purchasing an additional 100,418 shares in the last quarter. Finally, 71 West Capital Partners purchased a new stake in shares of Target Hospitality in the 4th quarter worth $7,147,000. Institutional investors own 32.40% of the company’s stock.

Target Hospitality Company Profile

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.