Target Hospitality (NASDAQ:TH) Shares Up 14.4% – Should You Buy?

Target Hospitality Corp. (NASDAQ:TH)’s stock price shot up 14.4% during trading on Wednesday. The company traded as high as $11.40 and last traded at $11.78. 173,044 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 1,413,518 shares. The stock had previously closed at $10.30.

Analysts Set New Price Targets

Several brokerages have recently commented on TH. Morgan Stanley raised their target price on Target Hospitality from $22.00 to $25.00 and gave the stock an “overweight” rating in a research report on Monday, September 14th. Stifel Nicolaus set a $26.00 price objective on Target Hospitality in a research note on Thursday, August 27th. Northland Securities set a $25.00 price objective on Target Hospitality in a research report on Thursday, August 27th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $23.00 price objective on shares of Target Hospitality in a research report on Thursday, August 27th. Finally, Weiss Ratings lowered Target Hospitality from a “sell (d+)” rating to a “sell (d-)” rating in a research note on Monday. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $25.20.

Target Hospitality Stock Performance

The stock has a fifty day simple moving average of $17.19 and a 200-day simple moving average of $14.84. The stock has a market cap of $1.18 billion, a P/E ratio of -25.70 and a beta of 1.56. 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 released its earnings results on Monday, November 9th. The company reported ($0.09) earnings per share for the quarter. Target Hospitality had a negative net margin of 12.23% and a negative return on equity of 11.92%. The business had revenue of $129.06 million during the quarter, compared to the consensus estimate of $118.35 million. On average, equities analysts expect that Target Hospitality Corp. will post -0.04 earnings per share for the current year.

Insiders Place Their Bets

In other Target Hospitality news, CEO James Archer acquired 13,385 shares of the 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 completion of the acquisition, the chief executive officer owned 1,845,441 shares in the company, valued at approximately $34,491,292.29. This represents a 0.73% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Troy Schrenk bought 5,907 shares of Target Hospitality stock in a transaction on Friday, September 18th. The shares were bought at an average cost of $21.16 per share, with a total value of $124,992.12. Following the acquisition, 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 ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 3.80% of the company’s stock.

Institutional Investors Weigh In On Target Hospitality

A number of large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of Target Hospitality in the 2nd quarter worth $64,312,000. Senator Investment Group LP purchased a new stake in Target Hospitality during the second quarter valued at $28,491,000. Bank of New York Mellon Corp purchased a new stake in Target Hospitality during the second quarter valued at $8,140,000. Royce & Associates LP increased its position in Target Hospitality by 71.5% during the third quarter. Royce & Associates LP now owns 898,625 shares of the company’s stock valued at $17,721,000 after acquiring an additional 374,684 shares during the last quarter. Finally, Bank of America Corp DE bought a new position in Target Hospitality in the second quarter valued at about $7,142,000. Institutional investors own 32.40% of the company’s stock.

Target Hospitality Company Profile

Target Hospitality Corporation provides modular accommodations and hospitality services for workers and other groups who need lodging near remote or specialized locations. Its services include lodging, dining, housekeeping, laundry, and recreation, with facilities designed to support extended stays. The company serves customers in industries such as energy and natural resources, as well as government clients. Its operations are primarily in the United States, including locations in the Permian Basin and other areas where traditional lodging may be limited.