Target Hospitality (NASDAQ:TH) Shares Climb 14.4% – Still a Buy?

Target Hospitality Corp. (NASDAQ:TH) shares traded up 14.4% on Wednesday. The stock traded as high as $11.40 and last traded at $11.78. 173,044 shares were traded during trading, a decline of 88% from the average session volume of 1,413,518 shares. The stock had previously closed at $10.30.

More Target Hospitality News

Investors following TH have been watching these news items:

• Positive Sentiment: Revenue growth and a sales beat: Q3 coverage highlighted strong revenue growth. The reported quarter’s revenue of $129.1 million topped analysts’ $118.4 million estimate, although the company still posted a loss of $0.09 per share. Target Hospitality stock posts strong revenue growth in Q3
• Positive Sentiment: CEO insider purchase: CEO James Archer bought 27,500 shares for about $312,675, increasing his direct ownership by 1.49%. The purchase may signal confidence in the company’s prospects. SEC Form 4 filing
• Neutral Sentiment: Contract outlook is a trade-off: A Seeking Alpha analysis maintained a “Hold” view, noting that contracts can pay well but may not last long—leaving investors weighing near-term revenue potential against contract-renewal and duration risks. Target Hospitality: Hold With Contracts That Pay Well But Don’t Last Long

Analysts Set New Price Targets

Several analysts have issued reports on the company. Stifel Nicolaus set a $26.00 target price on Target Hospitality in a research note on Thursday, August 27th. Morgan Stanley boosted their price target on shares of Target Hospitality from $22.00 to $25.00 and gave the company an “overweight” rating in a research report on Monday, September 14th. Oppenheimer raised their target price on shares of Target Hospitality from $24.00 to $27.00 and gave the company an “outperform” rating in a research note on Tuesday, September 8th. Weiss Ratings downgraded Target Hospitality from a “sell (d+)” rating to a “sell (d-)” rating in a research report on Monday. Finally, Northland Securities set a $25.00 price objective on shares of Target Hospitality in a research note on Thursday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, Target Hospitality presently has a consensus rating of “Moderate Buy” and a consensus target price of $25.20.

Target Hospitality Stock Performance

The company’s 50-day moving average price is $16.94 and its 200 day moving average price is $14.89. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.65 and a current ratio of 0.45. The stock has a market capitalization of $1.19 billion, a PE ratio of -26.04 and a beta of 1.56.

Target Hospitality (NASDAQ:TH) last announced its earnings results on Monday, November 9th. The company reported ($0.09) earnings per share (EPS) for the quarter. Target Hospitality had a negative return on equity of 12.29% and a negative net margin of 12.23%. The firm had revenue of $129.06 million during the quarter, compared to the consensus estimate of $118.35 million. On average, equities research analysts expect that Target Hospitality Corp. will post -0.16 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Target Hospitality news, CEO James Archer bought 27,500 shares of the stock in a transaction dated Wednesday, November 11th. The stock was purchased at an average cost of $11.37 per share, for a total transaction of $312,675.00. Following the completion of the acquisition, the chief executive officer owned 1,872,941 shares of the company’s stock, valued at approximately $21,295,339.17. This trade represents a 1.49% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Troy Schrenk acquired 5,907 shares of the stock in a transaction on Friday, September 18th. The shares were bought at an average price of $21.16 per share, with a total value of $124,992.12. Following the purchase, the insider directly owned 216,995 shares of the company’s stock, valued at $4,591,614.20. The trade was a 2.80% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 46,792 shares of company stock valued at $687,833 in the last ninety days. Insiders own 3.80% of the company’s stock.

Institutional Trading of Target Hospitality

A number of institutional investors and hedge funds have recently modified their holdings of the business. Quantbot Technologies LP bought a new position in shares of Target Hospitality during the second quarter valued at $27,000. Sterling Capital Management LLC boosted its position in shares of Target Hospitality by 351.4% during the third quarter. Sterling Capital Management LLC now owns 1,431 shares of the company’s stock valued at $28,000 after buying an additional 1,114 shares during the last quarter. Galaxy Digital Capital Management GP LLC bought a new stake in Target Hospitality in the 1st quarter worth about $67,000. Amundi bought a new stake in Target Hospitality in the 1st quarter worth about $101,000. Finally, State of Alaska Department of Revenue increased its holdings in Target Hospitality by 16.3% in the 3rd quarter. State of Alaska Department of Revenue now owns 6,160 shares of the company’s stock worth $121,000 after buying an additional 863 shares in the last quarter. 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.