A better buy-in window may exist right now for Target Hospitality Corp. (TH)

Target Hospitality Corp. (NASDAQ: TH) stock fell -2.30% on Friday to $16.59 against a previous-day closing price of $16.98. With 0.52 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.71 million shares. During the session, the Specialty Business Services company that operates in wider Industrials sector, reached to the highest price of $17.31 whereas the lowest price it dropped to was $16.57. The 52-week range on TH shows that it touched its highest point at $18.48 and its lowest point at $2.72 during that stretch. It currently has a 1-year price target of $21.33. Beta for the stock currently stands at 2.29.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TH was down-trending over the past week, with a drop of -7.47%, but this was up by 13.55% over a month. Three-month performance surged to 38.02% while six-month performance rose 21.09%. The stock gained 449.34% in the past year, while it has gained 9.58% so far this year. A look at the trailing 12-month EPS for TH yields 0.47 with Next year EPS estimates of 1.83. For the next quarter, that number is 0.39. This implies an EPS growth rate of 81.90% for this year and 95.72% for next year.

Float and Shares Shorts:

At present, 97.24 million TH shares are outstanding with a float of 27.36 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.84 million, which was 6.00% higher than short shares on Sep 14, 2022. In addition to Mr. James Bradley Archer as the firm’s CEO, Pres & Non-Independent Director, Mr. Eric T. Kalamaras serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 91.41% of TH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 71.34% of TH, in contrast to 7.08% held by mutual funds. Shares owned by individuals account for 23.30%. As the largest shareholder in TH with 5.88% of the stake, Private Capital Management LLC holds 5,722,145 shares worth 5,722,145. A second-largest stockholder of TH, Conversant Capital LLC, holds 3,655,503 shares, controlling over 3.76% of the firm’s shares. Coastal Bridge Advisors LLC is the third largest shareholder in TH, holding 2,677,517 shares or 2.75% stake. With a 0.91% stake in TH, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 883,697 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 0.67% of TH stock, is the second-largest Mutual Fund holder. It holds 646,637 shares valued at 9.79 million. Buffalo Small Cap Fund holds 0.59% of the stake in TH, owning 568,620 shares worth 8.61 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TH since 3 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TH analysts setting a high price target of $22.00 and a low target of $20.00, the average target price over the next 12 months is $21.33. Based on these targets, TH could surge 32.61% to reach the target high and rise by 20.55% to reach the target low. Reaching the average price target will result in a growth of 28.57% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TH will report FY 2022 earnings on 03/07/2024. Analysts have provided yearly estimates in a range of $1.04 being high and $0.83 being low. For TH, this leads to a yearly average estimate of $0.96. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Target Hospitality Corp. surprised analysts by -$0.35 when it reported $0.20 EPS against a consensus estimate of $0.55. The surprise factor in the prior quarter was $0.10. Based on analyst estimates, the high estimate for the next quarter is $0.40 and the low estimate is $0.38. The average estimate for the next quarter is thus $0.39.

Summary of Insider Activity:

Insiders traded TH stock several times over the past three months with 6 Buys and 8 Sells. In these transactions, 483,094 shares were bought while 1,398,367 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 21 over the past year. The total number of shares bought during that period was 983,162 while 3,496,970 shares were sold.

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