Shoals Technologies Group (NASDAQ:SHLS) Sees Strong Trading Volume Following Better-Than-Expected Earnings

Key Points

• Shoals Technologies beat quarterly expectations, reporting EPS of $0.14 versus $0.12 expected and revenue of $195.31 million versus $161.78 million expected. Revenue rose 43.8% year over year.
• Shares climbed about 10.3% to $9.34, while trading volume ran 69% above its daily average after the earnings announcement.
• Analyst sentiment is broadly positive: 11 analysts rate the stock Buy and seven Hold, for a “Moderate Buy” consensus and an average price target of $10.80.

Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report) shares saw an uptick in trading volume on Wednesday after the company announced better than expected quarterly earnings. 8,700,643 shares traded hands during mid-day trading, an increase of 69% from the average daily volume of 5,163,079 shares. The stock last traded at $9.3430 and had previously closed at $8.47.

The company reported $0.14 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.02. Shoals Technologies Group had a net margin of 5.41% and a return on equity of 10.07%. The firm had revenue of $195.31 million during the quarter, compared to analysts' expectations of $161.78 million. During the same quarter in the prior year, the company earned $0.12 EPS. The company's revenue was up 43.8% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on SHLS. Jefferies Financial Group dropped their target price on Shoals Technologies Group from $12.00 to $11.00 and set a "buy" rating on the stock in a research report on Wednesday, October 14th. Weiss Ratings raised Shoals Technologies Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, October 9th. Oppenheimer restated an "outperform" rating and set a $13.00 price objective on shares of Shoals Technologies Group in a research note on Tuesday, August 4th. The Goldman Sachs Group raised their price objective on Shoals Technologies Group from $11.00 to $13.00 and gave the company a "buy" rating in a research report on Tuesday, July 21st. Finally, Mizuho cut their target price on Shoals Technologies Group from $11.00 to $10.00 and set a "neutral" rating on the stock in a research note on Friday, October 16th. Eleven investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $10.80.

Institutional Trading of Shoals Technologies Group

A number of institutional investors have recently bought and sold shares of the stock. Ethic Inc. lifted its position in Shoals Technologies Group by 106.9% during the third quarter. Ethic Inc. now owns 27,418 shares of the company's stock valued at $222,000 after purchasing an additional 14,166 shares during the period. Parallel Advisors LLC grew its position in Shoals Technologies Group by 194.1% during the 3rd quarter. Parallel Advisors LLC now owns 4,014 shares of the company's stock worth $33,000 after purchasing an additional 2,649 shares during the period. Cidel Asset Management Inc. grew its position in Shoals Technologies Group by 8.5% during the 3rd quarter. Cidel Asset Management Inc. now owns 142,557 shares of the company's stock worth $1,155,000 after purchasing an additional 11,217 shares during the period. State of Wyoming grew its position in Shoals Technologies Group by 161.8% during the 3rd quarter. State of Wyoming now owns 38,003 shares of the company's stock worth $308,000 after purchasing an additional 23,488 shares during the period. Finally, Fifth Third Wealth Advisors LLC purchased a new stake in shares of Shoals Technologies Group in the third quarter worth about $126,000.

Shoals Technologies Group Stock Up 10.3%

The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.12 and a current ratio of 2.25. The firm has a market cap of $1.57 billion, a price-to-earnings ratio of 48.79, a PEG ratio of 0.91 and a beta of 1.86. The business's 50 day moving average price is $7.60 and its 200 day moving average price is $8.47.

Shoals Technologies Group Company Profile

Shoals Technologies Group, Inc develops electrical balance-of-system (EBOS) solutions for solar energy projects. Its products connect, protect, combine and monitor the direct-current electrical output of solar panels before electricity is converted and delivered to the broader power system.

The company's product portfolio includes wire harnesses, junction boxes, inline fuses, disconnects, recombiners, communication and monitoring equipment, and other electrical components used in photovoltaic installations.

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