Target Hospitality falls after secondary offering is priced
Shares of workforce accommodation firm Target Hospitality TH.O were down 7.1% at $18.82 premarket on Wednesday after a $259 mln secondary offering was priced.
The Woodlands, Texas-based company late Tuesday announced 14 mln shares sold by affiliates of private equity firm TDR Capital at $18.50.
The offering size was increased from 13 mln shares and priced at an 8.6% discount to the last sale.
In addition, TH will buy $30 mln worth of offering shares from the underwriters; Morgan Stanley, Deutsche Bank and JPMorgan are bookrunners.
Prior to the offering, TDR owned about 45.98 mln shares, or roughly 46% of TH, according to the prospectus.
Two weeks ago, TH boosted its 2026 revenue forecast to $435-$445 mln after announcing a new multi-year contract to provide facility and hospitality services for a top-five hyperscaler's data center development in West Texas.
Through Tuesday's close, TH stock was up 153% year to date.
All six analysts covering TH are bullish and their median price target is $25.50, according to LSEG data.
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