Shoals Technologies Group (NASDAQ:SHLS) Shares Gap Down - What's Next?

Key Points

• Shoals shares gapped down pre-market (opened at $7.00 vs prior close $7.22) but were last quoted at $7.4750 (up ~2.5%) on volume of 822,108; the 50‑day SMA ($7.47) remains below the 200‑day SMA ($8.48), indicating short‑term weakness.
• Multiple analysts cut price targets (e.g., RBC $10→$9, Guggenheim $12→$11, Roth MKM $15→$10) and some ratings were downgraded, though consensus is a Moderate Buy with an average price target of $9.57.
• Shoals reported Q earnings of $0.10 EPS, missing the $0.14 estimate, while revenue beat at $148.33M (vs. $144.52M) and rose 38.6% year‑over‑year.

Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $7.22, but opened at $7.00. Shoals Technologies Group shares last traded at $7.4750, with a volume of 822,108 shares changing hands.

Analyst Upgrades and Downgrades

SHLS has been the topic of several research analyst reports. Royal Bank Of Canada lowered their target price on shares of Shoals Technologies Group from $10.00 to $9.00 and set an "outperform" rating on the stock in a research note on Wednesday, February 25th. Guggenheim lowered their target price on shares of Shoals Technologies Group from $12.00 to $11.00 and set a "buy" rating on the stock in a research note on Wednesday, February 25th. Weiss Ratings restated a "hold (c)" rating on shares of Shoals Technologies Group in a research report on Friday, January 9th. Roth Mkm reduced their price objective on shares of Shoals Technologies Group from $15.00 to $10.00 and set a "buy" rating for the company in a research report on Tuesday, February 24th. Finally, Wall Street Zen lowered shares of Shoals Technologies Group from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Ten analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $9.57.

Shoals Technologies Group Stock Up 2.5%

The company has a quick ratio of 1.32, a current ratio of 2.03 and a debt-to-equity ratio of 0.23. The company has a market capitalization of $1.24 billion, a PE ratio of 37.47, a price-to-earnings-growth ratio of 0.92 and a beta of 1.64. The business's 50 day simple moving average is $7.47 and its 200 day simple moving average is $8.48.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) last posted its quarterly earnings data on Tuesday, February 24th. The company reported $0.10 EPS for the quarter, missing analysts' consensus estimates of $0.14 by ($0.04). Shoals Technologies Group had a net margin of 7.06% and a return on equity of 9.10%. The firm had revenue of $148.33 million for the quarter, compared to analysts' expectations of $144.52 million. During the same period in the prior year, the company posted $0.08 earnings per share. Shoals Technologies Group's quarterly revenue was up 38.6% compared to the same quarter last year. As a group, analysts forecast that Shoals Technologies Group, Inc. will post 0.29 EPS for the current year.

Institutional Trading of Shoals Technologies Group

Hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC lifted its stake in Shoals Technologies Group by 57.7% during the fourth quarter. GAMMA Investing LLC now owns 3,756 shares of the company's stock valued at $32,000 after buying an additional 1,375 shares in the last quarter. USA Financial Formulas purchased a new stake in shares of Shoals Technologies Group in the fourth quarter worth approximately $49,000. State of Alaska Department of Revenue purchased a new stake in shares of Shoals Technologies Group in the third quarter worth approximately $54,000. CIBC Asset Management Inc purchased a new stake in shares of Shoals Technologies Group in the fourth quarter worth approximately $85,000. Finally, Cibc World Markets Corp purchased a new stake in shares of Shoals Technologies Group in the fourth quarter worth approximately $95,000.

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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