Target Hospitality (NASDAQ:TH) Shares Gap Down – Should You Sell?

Target Hospitality Corp. (NASDAQ:TH)’s share price gapped down before the market opened on Monday . The stock had previously closed at $7.10, but opened at $6.39. Target Hospitality shares last traded at $7.13, with a volume of 149,080 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Stifel Nicolaus increased their target price on shares of Target Hospitality from $5.00 to $7.50 and gave the stock a “hold” rating in a research report on Monday, March 31st. Northland Capmk upgraded shares of Target Hospitality from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, January 29th. Finally, Northland Securities upgraded shares of Target Hospitality from a “market perform” rating to an “outperform” rating and raised their price objective for the company from $11.00 to $15.00 in a research report on Wednesday, January 29th.

Target Hospitality Price Performance

The stock has a market capitalization of $724.36 million, a P/E ratio of 8.37, a price-to-earnings-growth ratio of 1.81 and a beta of 1.89. The company’s 50-day simple moving average is $6.56 and its 200-day simple moving average is $7.99.

Target Hospitality (NASDAQ:TH) last released its earnings results on Wednesday, March 26th. The company reported $0.12 EPS for the quarter, beating the consensus estimate of $0.06 by $0.06. Target Hospitality had a net margin of 20.84% and a return on equity of 22.80%. The firm had revenue of $83.70 million for the quarter, compared to analyst estimates of $80.10 million. During the same period last year, the firm earned $0.29 EPS. The business’s quarterly revenue was down 33.7% compared to the same quarter last year. On average, analysts forecast that Target Hospitality Corp. will post 0.65 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of TH. Empowered Funds LLC purchased a new position in Target Hospitality in the first quarter worth $660,000. Goldman Sachs Group Inc. grew its position in Target Hospitality by 104.9% in the first quarter. Goldman Sachs Group Inc. now owns 280,288 shares of the company’s stock worth $1,844,000 after acquiring an additional 143,505 shares in the last quarter. Philadelphia Financial Management of San Francisco LLC purchased a new position in Target Hospitality in the first quarter worth $11,441,000. AQR Capital Management LLC purchased a new position in Target Hospitality in the first quarter worth $114,000. Finally, Appian Way Asset Management LP purchased a new position in Target Hospitality in the first quarter worth $11,872,000. 32.40% of the stock is currently owned by hedge funds and other institutional investors.

About Target Hospitality

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through two segments, Hospitality & Facilities Services – South and Government. It owns a network of specialty rental accommodation units. In addition, the company provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services.