Target Hospitality's quality score sits well below the engine's floor, its momentum has broken down, and options positioning shows elevated hedging activity, while its earnings track record shows no beats in the trailing year.
Thesis pillars
- Quality Below Floor No Moat→Stable
- Momentum Gate Failure→Stable
- Elevated Put Call High Iv→Stable
- +1 more pillar — see the Why tab for full reasoning
Target Hospitality Corp. (TH) Stock Analysis
Breakout setup
Industrials · Specialty Business Services
Sell if holding. Engine safety override at $17.43: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.9/10. Specifically: High short interest: 12%; Elevated put/call ratio: 3.68; Below-average business quality.
Target Hospitality is one of North America's largest vertically integrated specialty rental and hospitality services companies, operating 29 owned/leased communities with 16,991 beds (plus 2 managed communities) primarily in the southwestern U.S. Permian Basin region, serving... Read more
Sell if holding. Engine safety override at $17.43: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.9/10. Specifically: High short interest: 12%; Elevated put/call ratio: 3.68; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 59, MACD bullish. Score 5.9/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 82d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-08-14Recent Developments — Target Hospitality Corp.
Latest news
- NEWS 12 Consumer Discretionary Stocks Moving In Monday's Pre-Market Session — benzinga Aug 10, 2026 neutral
- NEWS Target Hospitality Q2 EPS $(0.09) Beats $(0.11) Estimate, Sales $85.455M Beat $79.296M Estimate — benzinga Aug 10, 2026 positive
- NEWS Target Hospitality Raises FY2026 Sales Guidance from $370.000M-$380.000M to $410.000M-$420.000M vs $375.957M Est — benzinga Aug 10, 2026 positive
- NEWS Reported Earlier, 'Acting ICE Chief Divests Detention Stocks and Recuses From Contracts' - WSJ Exclusive — benzinga Aug 3, 2026 negative
- NEWS 12 Consumer Discretionary Stocks Moving In Wednesday's Pre-Market Session — benzinga Jul 29, 2026 neutral
Generated 2026-08-14T18:27:37Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerlargest customer28%10-K Item 1A: 'the Company had three customers who accounted for 28%, 11% and 11% of total revenue, respectively, and our five largest customers accounted for approximately 63% of our total revenue'
- HIGHCustomertop five customers63%10-K Item 1A: 'the Company had three customers who accounted for 28%, 11% and 11% of total revenue, respectively, and our five largest customers accounted for approximately 63% of our total revenue'
- HIGHGeographicPermian Basin / Southwestern U.S.10-K Item 1: 'Our current footprint supporting natural resource development customers is strategically concentrated in the southwestern portion of the United States near the Permian Basin region served by our HFS – South segment.'
Material Events(8-K, last 90d)
- 2026-05-07Item 5.02LOWBoard appointed Paul Hohnsbeen, COO of Aligned Data Centers, as an independent director and Nominating and Corporate Governance Committee member, effective immediately through the 2027 annual meeting. Routine board appointment bringing data-center industry expertise.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Unprofitable operations — net margin -10.8%. Quality floor flags this regardless of sector context.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $17.43: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.9/10. Specifically: High short interest: 12%; Elevated put/call ratio: 3.68; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 59, MACD bullish. Prior stop was $16.21. Score 5.9/10, moderate confidence.
Take-profit target: $19.76 (+13.4% upside). Prior stop was $16.21. Stop-loss: $16.21.
Concentration risk — Customer: top five customers (63.0%); Concentration risk — Geographic: Permian Basin / Southwestern U.S.; Quality below floor (1.9 < 4.0).
Target Hospitality Corp. trades at a P/E of N/A (forward 23.0). TrendMatrix value score: 5.7/10. Verdict: Sell.
13 analysts cover TH with a consensus score of 4.2/5. Average price target: $23.
What does Target Hospitality Corp. do?Target Hospitality is one of North America's largest vertically integrated specialty rental and hospitality services...
Target Hospitality is one of North America's largest vertically integrated specialty rental and hospitality services companies, operating 29 owned/leased communities with 16,991 beds (plus 2 managed communities) primarily in the southwestern U.S. Permian Basin region, serving natural resource development, critical mineral development, data center infrastructure, and U.S. government customers. The company generated approximately $321 million in revenue in 2025 — 58.5% from specialty rental with hospitality services, 14.3% from facility leasing, and 27.2% from construction fee income — with roug