Target Hospitality (NASDAQ:TH) Shares Gap Down After Earnings Miss

Shares of Target Hospitality Corp. (NASDAQ:TH) gapped down before the market opened on Monday following a weaker than expected earnings announcement. 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.

The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.03). The firm had revenue of $69.90 million for the quarter, compared to analyst estimates of $65.37 million. Target Hospitality had a net margin of 20.84% and a return on equity of 22.80%. Target Hospitality’s revenue for the quarter was down 34.5% compared to the same quarter last year. During the same period last year, the firm earned $0.20 earnings per share.

Wall Street Analyst Weigh In

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

Hedge Funds Weigh In On Target Hospitality

A number of large investors have recently modified their holdings of the stock. Arrowstreet Capital Limited Partnership lifted its holdings in Target Hospitality by 32.1% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,008,702 shares of the company’s stock valued at $9,749,000 after buying an additional 245,252 shares during the period. KLP Kapitalforvaltning AS acquired a new stake in Target Hospitality in the 4th quarter valued at $372,000. American Century Companies Inc. increased its position in shares of Target Hospitality by 16.4% during the 4th quarter. American Century Companies Inc. now owns 695,316 shares of the company’s stock worth $6,720,000 after purchasing an additional 98,135 shares during the last quarter. Vanguard Group Inc. increased its position in Target Hospitality by 4.2% during the fourth quarter. Vanguard Group Inc. now owns 1,965,362 shares of the company’s stock worth $18,995,000 after buying an additional 79,561 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Target Hospitality by 420.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 199,358 shares of the company’s stock valued at $1,927,000 after purchasing an additional 161,036 shares during the last quarter. 32.40% of the stock is currently owned by institutional investors and hedge funds.

Target Hospitality Stock Performance

The business has a fifty day simple moving average of $6.63 and a 200 day simple moving average of $7.98. The stock has a market capitalization of $720.39 million, a price-to-earnings ratio of 8.33, a price-to-earnings-growth ratio of 1.81 and a beta of 1.89.

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.