Target Hospitality (NASDAQ:TH) stock is falling hard on Tuesday after the company announced the planned end to a service agreement with at the South Texas Family Residential Center.
According to a press release from the company, the U.S. government is planning to terminate its contract with Target Hospitality at this location. That will see the contract end in 60 days, which should be around Aug. 9, 2024.
Target Hospitality provides services to this location through a lease and services agreement with the South Texas Family Residential Center Partner. CoreCivic (NYSE:CXW) is the entity that the U.S. Government is terminating its contract with.
Target Hospitality notes that it will provide investors with more information by the end of the month about how this affects the company, including the operational and financial impacts on its business.
TH Stock Movement on Tuesday
TH stock is falling on Tuesday with more than 320,000 shares of the stock changing hands. That’s closing in on its daily average trading volume of about 587,000 shares.
TH stock is down 36.7% as of Tuesday morning. That erases the 6.9% increase the shares saw year-to-date when markets closed yesterday.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
