On August 25, 2023, Troy Schrenk, Chief Commercial Officer of Target Hospitality Corp (TH, Financial), sold 19,070 shares of the company. This move is part of a series of transactions made by the insider over the past year, which have seen a total of 52,913 shares sold and 4,609 shares purchased.
Target Hospitality Corp is a vertically integrated specialty rental and hospitality services company. It is the largest provider of vertically integrated specialty rental accommodations and value-added hospitality services in the United States. The company operates in several sectors, including oil and gas, energy, government and disaster relief, among others.
The insider transaction history for Target Hospitality Corp shows a trend of more sells than buys over the past year. There have been 2 insider buys in total, compared to 13 insider sells. This could indicate that insiders believe the stock is overvalued at its current price.
On the day of the insider's recent sell, shares of Target Hospitality Corp were trading for $15.5 apiece, giving the stock a market cap of $1.575 billion. The price-earnings ratio is 11.66, which is lower than the industry median of 16.84 and lower than the company’s historical median price-earnings ratio.
With a price of $15.5 and a GuruFocus Value of $10.15, Target Hospitality Corp has a price-to-GF-Value ratio of 1.53. This suggests that the stock is significantly overvalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
The insider's recent sell, coupled with the stock's high price-to-GF-Value ratio, could be a signal to investors that the stock is overvalued. However, investors should also consider other factors, such as the company's financial health and market conditions, before making investment decisions.
As always, insider transactions should not be used in isolation to make investment decisions. Instead, they should be used as a starting point for further research into a company's financials, fundamentals, and market conditions.
