Shoals Technologies Group (NASDAQ:SHLS) Trading Up 5.6% - Here's Why

Key Points

• Shoals Technologies Group shares rose 5.6% to about $7.28 in mid-day trading, with roughly 4.1 million shares changing hands.
• Analysts remain broadly positive, with 11 Buy ratings and six Holds, an overall “Moderate Buy” consensus, and an average price target of $10.71.
• The company exceeded quarterly expectations, reporting $0.12 in EPS versus $0.10 forecast and $163.37 million in revenue, up 47.4% year over year.

Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report)'s stock price traded up 5.6% during mid-day trading on Wednesday . The company traded as high as $7.38 and last traded at $7.2770. Approximately 4,122,345 shares traded hands during trading, a decline of 23% from the average daily volume of 5,361,460 shares. The stock had previously closed at $6.89.

Wall Street Analyst Weigh In

SHLS has been the subject of several research analyst reports. The Goldman Sachs Group lifted their price objective on shares of Shoals Technologies Group from $11.00 to $13.00 and gave the company a "buy" rating in a research note on Tuesday, July 21st. Barclays raised their price objective on Shoals Technologies Group from $9.00 to $10.00 and gave the company an "overweight" rating in a research report on Friday, June 26th. Roth Capital reaffirmed a "buy" rating on shares of Shoals Technologies Group in a report on Thursday, July 2nd. Jefferies Financial Group increased their target price on Shoals Technologies Group from $10.00 to $12.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Finally, Weiss Ratings lowered Shoals Technologies Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday. Eleven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, Shoals Technologies Group has an average rating of "Moderate Buy" and an average price target of $10.71.

Shoals Technologies Group Trading Up 3.9%

The firm has a market cap of $1.21 billion, a price-to-earnings ratio of 37.69, a price-to-earnings-growth ratio of 0.84 and a beta of 1.93. The business has a 50 day moving average of $9.30 and a 200 day moving average of $8.69. The company has a quick ratio of 1.12, a current ratio of 2.25 and a debt-to-equity ratio of 0.32.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.12 EPS for the quarter, topping analysts' consensus estimates of $0.10 by $0.02. Shoals Technologies Group had a return on equity of 10.07% and a net margin of 5.41%.The business had revenue of $163.37 million during the quarter, compared to the consensus estimate of $160.03 million. During the same period last year, the firm earned $0.10 earnings per share. The company's revenue for the quarter was up 47.4% compared to the same quarter last year. On average, research analysts forecast that Shoals Technologies Group, Inc. will post 0.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Bobbie Lee King, Jr. sold 10,000 shares of Shoals Technologies Group stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $10.41, for a total transaction of $104,100.00. Following the transaction, the insider directly owned 98,918 shares of the company's stock, valued at $1,029,736.38. This trade represents a 9.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 0.81% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. raised its stake in Shoals Technologies Group by 3.1% during the fourth quarter. Vanguard Group Inc. now owns 13,594,139 shares of the company's stock worth $115,550,000 after acquiring an additional 404,133 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in shares of Shoals Technologies Group by 151.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 12,753,784 shares of the company's stock worth $108,410,000 after buying an additional 7,685,515 shares in the last quarter. First Trust Advisors LP grew 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 worth $48,061,000 after buying an additional 972,382 shares during the period. Peconic Partners LLC increased its stake in Shoals Technologies Group by 79.8% in the second quarter. Peconic Partners LLC now owns 6,975,186 shares of the company's stock valued at $29,645,000 after purchasing an additional 3,095,186 shares in the last quarter. Finally, UBS Group AG grew its stake in shares of Shoals Technologies Group by 87.6% in the 4th quarter. UBS Group AG now owns 6,140,543 shares of the company's stock valued at $52,195,000 after buying an additional 2,867,959 shares during the period.

Shoals Technologies Group Company Profile

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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