Shoals Technologies Group (NASDAQ:SHLS) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Shoals Technologies Group from “Buy” to “Hold,” although the broader analyst consensus remains “Moderate Buy,” with 11 Buy ratings, six Holds, and an average price target of $10.71.
• Shoals reported quarterly earnings of $0.12 per share, exceeding the $0.10 estimate, while revenue rose 47.4% year over year to $163.37 million, above expectations.
• The stock opened at $8.45, below its 50-day average of $9.67 and 200-day average of $8.81; an insider also sold 10,000 shares for approximately $104,100.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Sunday.

Several other research analysts have also recently weighed in on the company. The Goldman Sachs Group boosted their target price on Shoals Technologies Group from $11.00 to $13.00 and gave the stock a "buy" rating in a report on Tuesday, July 21st. Citigroup reaffirmed a "neutral" rating on shares of Shoals Technologies Group in a report on Wednesday, July 22nd. Jefferies Financial Group lifted their price objective on Shoals Technologies Group from $10.00 to $12.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Wells Fargo & Company boosted their price objective on Shoals Technologies Group from $9.00 to $10.00 and gave the stock an "equal weight" rating in a research note on Thursday, June 11th. Finally, Weiss Ratings upgraded Shoals Technologies Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 4th. Eleven analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $10.71.

Shoals Technologies Group Price Performance

Shares of NASDAQ SHLS opened at $8.45 on Friday. The firm has a 50-day simple moving average of $9.67 and a 200-day simple moving average of $8.81. The stock has a market capitalization of $1.41 billion, a price-to-earnings ratio of 44.48, a price-to-earnings-growth ratio of 1.04 and a beta of 1.93. 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 has a 52 week low of $4.57 and a 52 week high of $13.18.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.10 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 $163.37 million for the quarter, compared to the consensus estimate of $160.03 million. During the same period last year, the firm posted $0.10 earnings per share. The company's revenue for the quarter was up 47.4% on a year-over-year basis. On average, equities analysts predict that Shoals Technologies Group will post 0.34 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Bobbie Lee King, Jr. sold 10,000 shares of the business's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $10.41, for a total value of $104,100.00. Following the sale, the insider owned 98,918 shares in the company, valued at approximately $1,029,736.38. The trade was a 9.18% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.81% of the company's stock.

Hedge Funds Weigh In On Shoals Technologies Group

Hedge funds and other institutional investors have recently bought and sold shares of the company. Price T Rowe Associates Inc. MD lifted its holdings in 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 during the last quarter. First Trust Advisors LP increased its holdings in shares of Shoals Technologies Group by 1,493.0% in the 4th quarter. First Trust Advisors LP now owns 6,331,682 shares of the company's stock valued at $53,819,000 after acquiring an additional 5,934,223 shares during the last quarter. Castle Hook Partners LP acquired a new stake in shares of Shoals Technologies Group during the 4th quarter worth about $40,095,000. Amundi lifted its stake in Shoals Technologies Group by 175.2% during the fourth quarter. Amundi now owns 5,776,766 shares of the company's stock worth $49,075,000 after purchasing an additional 3,677,713 shares during the last quarter. Finally, Peconic Partners LLC lifted its stake in Shoals Technologies Group by 79.8% during the second quarter. Peconic Partners LLC now owns 6,975,186 shares of the company's stock worth $29,645,000 after purchasing an additional 3,095,186 shares during the last quarter.

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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