Investors Purchase Large Volume of Shoals Technologies Group Call Options (NASDAQ:SHLS)

Key Points

• Unusual options activity: Investors bought 8,296 call options on Shoals Technologies Group, about 67% above the stock’s typical call volume, signaling heightened bullish speculation.
• Shares rose on the session: SHLS climbed 6.5% to $9.90, with the move coming after the company reported stronger-than-expected quarterly results, including EPS of $0.07 versus the $0.06 consensus and revenue of $140.56 million.
• Analysts remain generally constructive: Several firms recently raised targets or reiterated buy ratings, and the stock currently carries a Moderate Buy consensus with an average price target of $9.79.

Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report) was the target of some unusual options trading activity on Tuesday. Stock traders bought 8,296 call options on the stock. This represents an increase of approximately 67% compared to the typical volume of 4,953 call options.

Shoals Technologies Group Trading Up 6.5%

SHLS traded up $0.61 on Tuesday, reaching $9.90. 2,825,998 shares of the company traded hands, compared to its average volume of 5,304,586. The company has a market cap of $1.66 billion, a P/E ratio of 49.48, a price-to-earnings-growth ratio of 1.09 and a beta of 1.89. The company has a quick ratio of 1.07, a current ratio of 1.84 and a debt-to-equity ratio of 0.30. Shoals Technologies Group has a one year low of $4.18 and a one year high of $13.18. The firm has a fifty day simple moving average of $9.63 and a two-hundred day simple moving average of $8.69.

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

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. UBS Group increased their price target on Shoals Technologies Group from $11.00 to $12.00 and gave the company a "buy" rating in a report on Thursday, May 7th. JPMorgan Chase & Co. boosted their price objective on shares of Shoals Technologies Group from $9.00 to $10.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Guggenheim restated a "buy" rating on shares of Shoals Technologies Group in a report on Friday, May 22nd. Needham & Company LLC reaffirmed a "buy" rating and set a $12.00 price target on shares of Shoals Technologies Group in a research note on Wednesday, May 6th. Finally, Weiss Ratings upgraded shares of Shoals Technologies Group from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, May 22nd. Ten equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $9.79.

Insiders Place Their Bets

In related news, 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 transaction, the insider owned 98,918 shares in the company, valued at approximately $1,029,736.38. This trade represents a 9.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Dominic Bardos sold 54,449 shares of the business's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $8.48, for a total value of $461,727.52. Following the sale, the chief financial officer directly owned 394,979 shares in the company, valued at $3,349,421.92. The trade was a 12.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.81% of the company's stock.

Institutional Trading of Shoals Technologies Group

A number of hedge funds have recently added to or reduced their stakes in SHLS. Royal Bank of Canada grew its holdings in Shoals Technologies Group by 292.5% during the 1st quarter. Royal Bank of Canada now owns 106,531 shares of the company's stock worth $353,000 after acquiring an additional 79,392 shares in the last quarter. AQR Capital Management LLC raised its holdings in shares of Shoals Technologies Group by 184.7% in the 1st quarter. AQR Capital Management LLC now owns 922,358 shares of the company's stock valued at $2,975,000 after purchasing an additional 598,407 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in shares of Shoals Technologies Group in the 1st quarter valued at about $57,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Shoals Technologies Group by 8.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 517,507 shares of the company's stock worth $1,718,000 after purchasing an additional 38,983 shares during the period. Finally, Legal & General Group Plc lifted its position in shares of Shoals Technologies Group by 1.9% in the 2nd quarter. Legal & General Group Plc now owns 195,828 shares of the company's stock worth $832,000 after purchasing an additional 3,601 shares during the period.

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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