Shoals Technologies Group (NASDAQ:SHLS) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Shoals Technologies Group's shares surged from a previous closing price of $5.38 to an opening price of $5.80 after the company reported stronger than expected earnings of $0.10 per share, above analysts' estimates of $0.08.
• The company's revenue increased by 11.7% year-over-year, reaching $110.84 million for the quarter, surpassing analyst expectations of $104.87 million.
• Analysts have mixed ratings on the stock, with a total of 13 "buy" ratings, 6 "hold" ratings, and 4 "sell" ratings, and an average target price set at $8.77 according to MarketBeat.

Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report)'s stock price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $5.38, but opened at $5.80. Shoals Technologies Group shares last traded at $4.95, with a volume of 1,756,403 shares changing hands.

The company reported $0.10 earnings per share for the quarter, beating the consensus estimate of $0.08 by $0.02. Shoals Technologies Group had a net margin of 5.27% and a return on equity of 7.57%. The business had revenue of $110.84 million for the quarter, compared to analysts' expectations of $104.87 million. During the same quarter last year, the firm earned $0.10 EPS. The firm's revenue for the quarter was up 11.7% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several equities analysts have commented on SHLS shares. Mizuho cut shares of Shoals Technologies Group from an "outperform" rating to a "neutral" rating and set a $7.00 target price on the stock. in a research report on Monday, July 14th. Guggenheim lifted their target price on shares of Shoals Technologies Group from $6.00 to $8.00 and gave the stock a "buy" rating in a research report on Wednesday. Citigroup lifted their target price on shares of Shoals Technologies Group from $4.50 to $5.50 and gave the stock a "neutral" rating in a research report on Wednesday, May 7th. BNP Paribas reissued an "underperform" rating and set a $4.00 target price (down previously from $4.50) on shares of Shoals Technologies Group in a research report on Thursday, May 15th. Finally, BNP Paribas Exane cut shares of Shoals Technologies Group from a "neutral" rating to an "underperform" rating and set a $4.00 target price on the stock. in a research report on Thursday, May 15th. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $9.15.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in SHLS. Wellington Management Group LLP grew its position in shares of Shoals Technologies Group by 51.9% during the 1st quarter. Wellington Management Group LLP now owns 21,615,890 shares of the company's stock valued at $71,765,000 after purchasing an additional 7,382,548 shares in the last quarter. CenterBook Partners LP purchased a new position in Shoals Technologies Group in the first quarter worth $12,489,000. T. Rowe Price Investment Management Inc. purchased a new position in Shoals Technologies Group in the first quarter worth $7,712,000. Pacer Advisors Inc. purchased a new position in Shoals Technologies Group in the first quarter worth $5,350,000. Finally, Goodlander Investment Management LLC purchased a new position in Shoals Technologies Group in the fourth quarter worth $8,295,000.

Shoals Technologies Group Price Performance

The firm's 50-day moving average is $5.31 and its 200-day moving average is $4.40. The company has a market capitalization of $789.09 million, a PE ratio of 36.31, a price-to-earnings-growth ratio of 0.64 and a beta of 1.61. The company has a quick ratio of 1.58, a current ratio of 2.34 and a debt-to-equity ratio of 0.23.

About Shoals Technologies Group

Shoals Technologies Group, Inc provides electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle (EV) charging applications in the United States and internationally. The company designs, manufactures, and sells system solutions for both homerun and combine-as-you-go wiring architectures, as well as offers technical support services.