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
Range Bound setup
Industrials · Specialty Business Services
Sell if holding. Engine safety override at $18.32: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10. Specifically: High short interest: 10%; Elevated put/call ratio: 8.05; 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 $18.32: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10. Specifically: High short interest: 10%; Elevated put/call ratio: 8.05; Below-average business quality. Chart setup: RSI 43 mid-range, Bollinger mid-band. Score 4.6/10, moderate confidence.
Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity 29d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
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
3 floor-breakers
Unprofitable operations — net margin -13.5%. Quality floor flags this regardless of sector context.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $18.32: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10. Specifically: High short interest: 10%; Elevated put/call ratio: 8.05; Below-average business quality. Chart setup: RSI 43 mid-range, Bollinger mid-band. Prior stop was $16.99. Score 4.6/10, moderate confidence.
Take-profit target: $18.70 (+2.4% upside). Prior stop was $16.99. Stop-loss: $16.99.
Concentration risk — Customer: top five customers (63.0%); Concentration risk — Geographic: Permian Basin / Southwestern U.S.; Target reached (2.4% upside).
Target Hospitality Corp. trades at a P/E of N/A (forward 26.3). TrendMatrix value score: 6.6/10. Verdict: Sell.
13 analysts cover TH with a consensus score of 4.2/5. Average price target: $22.
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