Target Hospitality (NASDAQ:TH) Shares Gap Down – Here’s What Happened

Shares of Target Hospitality Corp. (NASDAQ:TH) gapped down prior to trading 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 trading hands.

Wall Street Analyst Weigh In

TH has been the subject of a number of analyst reports. Morgan Stanley increased their target price on shares of Target Hospitality from $22.00 to $25.00 and gave the stock an “overweight” rating in a report on Monday, September 14th. Oppenheimer boosted their price target on Target Hospitality from $24.00 to $27.00 and gave the company an “outperform” rating in a report on Tuesday, September 8th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $23.00 price target on shares of Target Hospitality in a research report on Thursday, August 27th. Weiss Ratings upgraded Target Hospitality from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, August 21st. Finally, Stifel Nicolaus set a $26.00 target price on Target Hospitality in a research note on Thursday, August 27th. One investment 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 company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $25.20.

Target Hospitality Stock Performance

The company’s 50-day moving average price is $18.08 and its 200 day moving average price is $16.71. The stock has a market capitalization of $1.87 billion, a PE ratio of -49.43 and a beta of 1.49. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.65 and a current ratio of 0.65.

Target Hospitality (NASDAQ:TH) last announced its quarterly earnings results on Monday, August 10th. The company reported ($0.09) earnings per share (EPS) for the quarter, beating 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 company had revenue of $85.45 million for the quarter, compared to analysts’ expectations of $79.30 million. On average, equities research analysts expect that Target Hospitality Corp. will post -0.05 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO James Archer bought 13,385 shares of Target Hospitality stock in a transaction on Tuesday, September 15th. The shares were purchased at an average price of $18.69 per share, for a total transaction of $250,165.65. Following the acquisition, the chief executive officer owned 1,845,441 shares of the company’s stock, valued at approximately $34,491,292.29. The trade was a 0.73% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Troy Schrenk bought 5,907 shares of the firm’s stock in a transaction dated Friday, September 18th. The stock was purchased at an average cost of $21.16 per share, with a total value of $124,992.12. Following the transaction, the insider directly 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. 3.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Target Hospitality

A number of institutional investors have recently added to or reduced their stakes in TH. WINTON GROUP Ltd purchased a new position in Target Hospitality during the second quarter valued at $1,498,000. HighTower Advisors LLC increased its stake in shares of Target Hospitality by 14.9% in the 2nd quarter. HighTower Advisors LLC now owns 1,842,267 shares of the company’s stock worth $37,509,000 after acquiring an additional 238,280 shares in the last quarter. AXQ Capital LP bought a new position in shares of Target Hospitality in the 2nd quarter worth about $471,000. Senator Investment Group LP purchased a new position in Target Hospitality during the 2nd quarter valued at about $28,491,000. Finally, Moore Capital Management LP purchased a new position in Target Hospitality during the 2nd quarter valued at about $509,000. Institutional investors own 32.40% of the company’s stock.

Target Hospitality Company Profile

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.