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

Target Hospitality Corp. (NASDAQ:TH)’s share price gapped up before the market opened on Wednesday following a better than expected earnings announcement. 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 trading hands.

The company reported $0.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.06 by $0.06. 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 for the quarter, compared to analyst estimates of $80.10 million. During the same quarter last year, the firm posted $0.29 EPS. The company’s revenue was down 33.7% on a year-over-year basis.

Wall Street Analyst Weigh In

Several research firms have issued reports on TH. Northland Capmk upgraded shares of Target Hospitality from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, January 29th. Stifel Nicolaus reduced their target price on Target Hospitality from $10.00 to $5.00 and set a “hold” rating for the company in a research report on Wednesday, February 26th. Finally, Northland Securities upgraded shares of Target Hospitality from a “market perform” rating to an “outperform” rating and lifted their price target for the stock from $11.00 to $15.00 in a research note on Wednesday, January 29th.

Hedge Funds Weigh In On Target Hospitality

A number of hedge funds have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD grew its position in Target Hospitality by 15.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 12,318 shares of the company’s stock valued at $119,000 after acquiring an additional 1,650 shares during the period. Fox Run Management L.L.C. boosted its stake in shares of Target Hospitality by 17.6% in the 4th quarter. Fox Run Management L.L.C. now owns 14,473 shares of the company’s stock valued at $140,000 after purchasing an additional 2,161 shares in the last quarter. SG Americas Securities LLC grew its holdings in shares of Target Hospitality by 16.3% in the 4th quarter. SG Americas Securities LLC now owns 16,110 shares of the company’s stock worth $156,000 after purchasing an additional 2,262 shares during the last quarter. AdvisorShares Investments LLC grew its holdings in shares of Target Hospitality by 13.7% in the 4th quarter. AdvisorShares Investments LLC now owns 24,889 shares of the company’s stock worth $241,000 after purchasing an additional 3,000 shares during the last quarter. Finally, AlphaQuest LLC increased its position in shares of Target Hospitality by 275.9% during the 4th quarter. AlphaQuest LLC now owns 4,578 shares of the company’s stock worth $44,000 after purchasing an additional 3,360 shares in the last quarter. 32.40% of the stock is owned by institutional investors and hedge funds.

Target Hospitality Trading Up 6.4 %

The stock has a market capitalization of $645.10 million, a P/E ratio of 7.49, a P/E/G ratio of 1.81 and a beta of 2.15. The firm’s fifty day moving average is $7.87 and its 200-day moving average is $8.40.

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.