Target Hospitality (NASDAQ:TH) Stock Falls 12.4% – Should You Sell?

Shares of Target Hospitality Corp. (NASDAQ:TH) dropped 12.4% during trading on Wednesday. The stock traded as low as $12.83 and last traded at $12.6940. Approximately 262,457 shares were traded during trading, a decline of 80% from the average daily volume of 1,328,454 shares. The stock had previously closed at $14.49.

Analysts Set New Price Targets

TH has been the topic of a number of research reports. Weiss Ratings downgraded shares of Target Hospitality from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 23rd. Morgan Stanley lifted their price target on Target Hospitality from $22.00 to $25.00 and gave the stock an “overweight” rating in a research report on Monday, September 14th. Northland Securities set a $25.00 price objective on Target Hospitality in a research note on Thursday, August 27th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $23.00 price objective on shares of Target Hospitality in a research note on Thursday, August 27th. Finally, Stifel Nicolaus set a $26.00 target price on Target Hospitality in a report on Thursday, August 27th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $25.20.

Target Hospitality Trading Down 18.3%

The company’s 50 day simple moving average is $17.90 and its 200-day simple moving average is $14.76. The firm has a market cap of $1.18 billion, a P/E ratio of -31.42 and a beta of 1.56. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.11.

Target Hospitality (NASDAQ:TH) last posted its quarterly earnings results on Monday, August 10th. The company reported ($0.09) earnings per share for the quarter, beating the consensus estimate of ($0.11) by $0.02. The firm had revenue of $85.45 million during the quarter, compared to the consensus estimate 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, research analysts predict that Target Hospitality Corp. will post -0.04 earnings per share for the current fiscal year.

Insider Buying and Selling 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 price of $18.69 per share, with a total value of $250,165.65. Following the transaction, the chief executive officer owned 1,845,441 shares of the company’s stock, 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 SEC, which can be accessed through this hyperlink. Also, insider Troy C. Schrenk purchased 5,907 shares of Target Hospitality stock in a transaction dated Friday, September 18th. The stock was acquired at an average price 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. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Target Hospitality

Institutional investors have recently bought and sold shares of the business. BlackRock Inc. bought a new position in Target Hospitality in the second quarter worth approximately $64,312,000. HighTower Advisors LLC boosted its position 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 in the last quarter. Senator Investment Group LP bought a new stake in Target Hospitality during the 2nd quarter valued at $28,491,000. Dimensional Fund Advisors LP raised its position in shares of Target Hospitality by 21.4% in the 1st 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 in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its stake in shares of 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 purchasing an additional 147,950 shares during the last quarter. 32.40% of the stock is owned by hedge funds and other institutional investors.

About Target Hospitality

Target Hospitality Corp. (NASDAQ: TH) provides specialty rental and hospitality services for organizations that require temporary or long-term workforce housing. The company develops and operates workforce accommodation communities and related facilities, offering an integrated alternative to traditional hotels or permanent housing in locations where lodging infrastructure is limited.

Its services generally include furnished lodging, food services, housekeeping, laundry, transportation, maintenance, recreation and other facility-management support.