Target Hospitality (NASDAQ:TH) Shares Gap Up Following Strong Earnings

Target Hospitality Corp. (NASDAQ:TH) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $6.13, but opened at $6.63. Target Hospitality shares last traded at $6.27, with a volume of 361,867 shares traded.

The company reported $0.12 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.05. Target Hospitality had a return on equity of 22.80% and a net margin of 20.84%. The company had revenue of $83.70 million for the quarter, compared to analysts’ expectations of $80.10 million. During the same period in the previous year, the business posted $0.29 EPS. The business’s revenue for the quarter was down 33.7% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Northland Securities upgraded shares of Target Hospitality from a “market perform” rating to an “outperform” rating and increased their target price for the stock from $11.00 to $15.00 in a research report on Wednesday, January 29th. Stifel Nicolaus lowered their target price on shares of Target Hospitality from $10.00 to $5.00 and set a “hold” rating on the stock in a report on Wednesday, February 26th. Finally, Northland Capmk upgraded Target Hospitality from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, January 29th.

Hedge Funds Weigh In On Target Hospitality

Institutional investors have recently added to or reduced their stakes in the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Target Hospitality by 28.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 101,089 shares of the company’s stock worth $977,000 after purchasing an additional 22,355 shares during the last quarter. Two Sigma Advisers LP bought a new position in shares of Target Hospitality in the 4th quarter worth $105,000. Two Sigma Investments LP raised its position in shares of Target Hospitality by 280.0% during the 4th quarter. Two Sigma Investments LP now owns 129,161 shares of the company’s stock valued at $1,248,000 after buying an additional 95,167 shares in the last quarter. Shay Capital LLC bought a new stake in shares of Target Hospitality during the 4th quarter worth $2,667,000. Finally, Quantinno Capital Management LP purchased a new position in Target Hospitality in the fourth quarter worth $258,000. 32.40% of the stock is currently owned by institutional investors.

Target Hospitality Price Performance

The stock has a 50 day moving average of $7.95 and a 200 day moving average of $8.41. The firm has a market cap of $619.57 million, a P/E ratio of 7.20, a PEG ratio of 1.81 and a beta of 2.15.

Target Hospitality Company Profile

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.