Target Hospitality (NASDAQ:TH) Shares Gap Up Following Better-Than-Expected Earnings

Target Hospitality Corp. (NASDAQ:TH) shares 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 earnings per share for the quarter, beating 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 firm had revenue of $83.70 million during the quarter, compared to analyst estimates of $80.10 million. During the same quarter in the prior year, the firm posted $0.29 earnings per share. The business’s quarterly revenue was down 33.7% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Northland Capmk raised Target Hospitality from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, January 29th. Northland Securities upgraded Target Hospitality from a “market perform” rating to an “outperform” rating and lifted their price objective for the stock from $11.00 to $15.00 in a research report on Wednesday, January 29th. Finally, Stifel Nicolaus cut their price target 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.

Institutional Investors Weigh In On Target Hospitality

Several hedge funds have recently made changes to their positions in TH. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in 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 in the last quarter. Two Sigma Advisers LP purchased a new stake in Target Hospitality in the fourth quarter worth about $105,000. Two Sigma Investments LP raised its stake in Target Hospitality by 280.0% during the fourth 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 during the last quarter. Shay Capital LLC purchased a new stake in shares of Target Hospitality in the fourth quarter worth $2,667,000. Finally, Quantinno Capital Management LP bought a new position in shares of Target Hospitality during the fourth quarter valued at $258,000. 32.40% of the stock is currently owned by institutional investors.

Target Hospitality Stock Performance

The stock has a market cap of $619.57 million, a PE ratio of 7.20, a price-to-earnings-growth ratio of 1.81 and a beta of 2.15. The firm has a 50-day moving average price of $7.95 and a 200-day moving average price of $8.41.

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.