Redwood Grove Capital LLC Increases Holdings in Shoals Technologies Group, Inc. $SHLS

Key Points

• Redwood Grove Capital increased its Shoals Technologies stake by 20.2% in the first quarter, adding 511,000 shares to reach 3.04 million shares valued at approximately $20 million.
• Analysts remain broadly positive, with 10 Buy ratings and six Holds, producing a consensus “Moderate Buy” rating and an average price target of $10.46.
• Shoals reported first-quarter earnings of $0.07 per share and revenue of $140.6 million, exceeding estimates and marking 74.4% year-over-year revenue growth; however, shares opened at $8.54, below the consensus target.

Redwood Grove Capital LLC boosted its stake in shares of Shoals Technologies Group, Inc. (NASDAQ:SHLS - Free Report) by 20.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,037,422 shares of the company's stock after acquiring an additional 511,000 shares during the quarter. Shoals Technologies Group accounts for 6.5% of Redwood Grove Capital LLC's portfolio, making the stock its 3rd largest position. Redwood Grove Capital LLC owned about 1.81% of Shoals Technologies Group worth $19,986,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently made changes to their positions in SHLS. GAMMA Investing LLC boosted its stake in shares of Shoals Technologies Group by 57.7% in the 4th quarter. GAMMA Investing LLC now owns 3,756 shares of the company's stock valued at $32,000 after purchasing an additional 1,375 shares in the last quarter. KBC Group NV acquired a new stake in shares of Shoals Technologies Group during the 1st quarter worth about $30,000. USA Financial Formulas bought a new position in Shoals Technologies Group during the 4th quarter valued at about $49,000. PNC Financial Services Group Inc. lifted its holdings in Shoals Technologies Group by 378.0% during the 1st quarter. PNC Financial Services Group Inc. now owns 7,566 shares of the company's stock valued at $50,000 after purchasing an additional 5,983 shares during the last quarter. Finally, CIBC Asset Management Inc acquired a new position in Shoals Technologies Group in the fourth quarter valued at about $85,000.

Analyst Ratings Changes

Several analysts have weighed in on SHLS shares. Roth Capital reaffirmed a "buy" rating on shares of Shoals Technologies Group in a research note on Thursday, July 2nd. UBS Group lifted their target price on shares of Shoals Technologies Group from $11.00 to $12.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Barclays boosted their target price on Shoals Technologies Group from $9.00 to $10.00 and gave the stock an "overweight" rating in a report on Friday, June 26th. Needham & Company LLC restated a "buy" rating and set a $12.00 price target on shares of Shoals Technologies Group in a research report on Wednesday, May 6th. Finally, Guggenheim reaffirmed a "buy" rating on shares of Shoals Technologies Group in a report on Friday, May 22nd. Ten equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $10.46.

Shoals Technologies Group Trading Down 9.1%

Shares of NASDAQ SHLS opened at $8.54 on Wednesday. Shoals Technologies Group, Inc. has a 1-year low of $4.43 and a 1-year high of $13.18. The company has a 50-day moving average of $10.36 and a two-hundred day moving average of $8.86. The company has a market cap of $1.43 billion, a PE ratio of 42.70, a P/E/G ratio of 1.14 and a beta of 1.90. The company has a current ratio of 1.84, a quick ratio of 1.07 and a debt-to-equity ratio of 0.30.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.07 earnings per share for the quarter, beating analysts' consensus estimates of $0.06 by $0.01. Shoals Technologies Group had a net margin of 6.27% and a return on equity of 10.03%. The business had revenue of $140.56 million during the quarter, compared to analyst estimates of $129.16 million. The company's quarterly revenue was up 74.4% on a year-over-year basis. As a group, equities analysts expect that Shoals Technologies Group, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Buying and Selling at Shoals Technologies Group

In related news, CFO Dominic Bardos sold 54,449 shares of the firm's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $8.48, for a total value of $461,727.52. Following the transaction, the chief financial officer owned 394,979 shares in the company, valued at $3,349,421.92. This trade represents a 12.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Bobbie Lee King, Jr. sold 10,000 shares of Shoals Technologies Group stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $10.41, for a total value of $104,100.00. Following the completion of the sale, the insider owned 98,918 shares of the company's stock, valued at approximately $1,029,736.38. The trade was a 9.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.81% of the stock is currently owned by company insiders.

About Shoals Technologies Group

Shoals Technologies Group, Inc is a leading provider of electrical balance-of-system (BOS) solutions for the solar energy industry. The company designs, engineers and manufactures a comprehensive portfolio of products, including junction boxes, combiner boxes, cable assemblies, power distribution units and monitoring systems. These components are critical to interconnecting photovoltaic modules, optimizing energy output and ensuring safe, reliable performance across solar installations.

Founded in 1996 and headquartered in Portland, Tennessee, Shoals has grown its manufacturing and operations footprint to serve customers around the globe.

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