Shoals Technologies Group (NASDAQ:SHLS) Shares Cross Below 200-Day Moving Average - Here's Why

Key Points

• Shoals Technologies shares fell below their 200-day moving average of $8.46, trading as low as $7.97 and last at $8.13 on volume of nearly 7 million shares.
• Analyst sentiment remained positive: the stock had a consensus “Moderate Buy” rating from 12 Buy and 7 Hold ratings, with an average price target of $10.94.
• The company beat quarterly estimates, 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 of Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report) crossed below its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $8.46 and traded as low as $7.97. Shoals Technologies Group shares last traded at $8.13, with a volume of 6,965,718 shares.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. Cantor Fitzgerald lifted their price objective on shares of Shoals Technologies Group from $11.00 to $12.00 and gave the company an "overweight" rating in a research report on Thursday, November 5th. Oppenheimer restated an "outperform" rating and set a $13.00 target price on shares of Shoals Technologies Group in a research report on Tuesday, August 4th. Barclays upped their target price on shares of Shoals Technologies Group from $10.00 to $11.00 and gave the stock an "overweight" rating in a research report on Thursday, October 8th. Weiss Ratings raised shares of Shoals Technologies Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, October 9th. Finally, The Goldman Sachs Group lifted their price target on shares of Shoals Technologies Group from $11.00 to $13.00 and gave the company a "buy" rating in a report on Tuesday, July 21st. Twelve analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $10.94.

Shoals Technologies Group Stock Performance

The business has a 50 day moving average of $7.79 and a 200 day moving average of $8.46. The company has a market capitalization of $1.37 billion, a P/E ratio of 35.35, a price-to-earnings-growth ratio of 1.03 and a beta of 1.86. The company has a quick ratio of 1.39, a current ratio of 2.45 and a debt-to-equity ratio of 0.26.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The company reported $0.14 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.02. Shoals Technologies Group had a return on equity of 10.23% and a net margin of 5.84%. The business had revenue of $195.31 million during the quarter, compared to analysts' expectations of $161.78 million. During the same quarter last year, the business posted $0.12 EPS. The firm's revenue for the quarter was up 43.8% compared to the same quarter last year. On average, sell-side analysts predict that Shoals Technologies Group, Inc. will post 0.35 earnings per share for the current year.

Institutional Investors Weigh In On Shoals Technologies Group

Large investors have recently bought and sold shares of the business. Boston Partners bought a new position in Shoals Technologies Group during the third quarter valued at $17,215,000. Voya Investment Management LLC increased its holdings in shares of Shoals Technologies Group by 100.9% in the 3rd quarter. Voya Investment Management LLC now owns 3,270,715 shares of the company's stock worth $26,493,000 after buying an additional 1,642,891 shares during the last quarter. Heartland Advisors Inc. bought a new stake in shares of Shoals Technologies Group in the 1st quarter worth about $6,950,000. Dimensional Fund Advisors LP raised its position in shares of Shoals Technologies Group by 31.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,268,794 shares of the company's stock valued at $28,083,000 after buying an additional 1,016,987 shares in the last quarter. Finally, First Trust Advisors LP raised its position in shares of Shoals Technologies Group by 15.4% during the 1st quarter. First Trust Advisors LP now owns 7,304,064 shares of the company's stock valued at $48,061,000 after buying an additional 972,382 shares in the last quarter.

Shoals Technologies Group Company Profile

Shoals Technologies Group designs and supplies electrical balance-of-system (EBOS) solutions used in solar energy projects. Founded in 1996, the company develops equipment and systems that connect solar panels to the electrical grid. Its products include cable assemblies and wiring harnesses, combiner and junction boxes, disconnects, and other components used to collect and manage electricity generated by solar panels. Shoals also offers pre-engineered, plug-and-play solutions intended to simplify installation and maintenance.

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