Shoals Technologies Group (NASDAQ:SHLS) Shares Gap Up After Earnings Beat

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 prior to trading on Tuesday following a stronger than expected earnings report. 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.

The company reported $0.10 earnings per share for the quarter, beating analysts' consensus estimates of $0.08 by $0.02. The business had revenue of $110.84 million during the quarter, compared to analyst estimates of $104.87 million. Shoals Technologies Group had a return on equity of 7.63% and a net margin of 4.90%. Shoals Technologies Group's revenue was up 11.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.10 EPS.

Analyst Upgrades and Downgrades

Several research firms have recently commented on SHLS. The Goldman Sachs Group boosted their price target on Shoals Technologies Group from $5.00 to $6.00 and gave the stock a "buy" rating in a research report on Wednesday, May 7th. Citigroup boosted their price target on Shoals Technologies Group from $4.50 to $5.50 and gave the stock a "neutral" rating in a research report on Wednesday, May 7th. Guggenheim boosted their target price on Shoals Technologies Group from $5.00 to $6.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Jefferies Financial Group upgraded Shoals Technologies Group from a "hold" rating to a "buy" rating and boosted their target price for the stock from $4.90 to $7.20 in a research note on Monday, July 7th. Finally, BNP Paribas Exane downgraded Shoals Technologies Group from a "neutral" rating to an "underperform" rating and set a $4.00 target price on the stock. in a research note on Thursday, May 15th. Four equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and thirteen have assigned a buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $8.77.

Hedge Funds Weigh In On Shoals Technologies Group

A number of hedge funds have recently made changes to their positions in SHLS. Wellington Management Group LLP raised its holdings in shares of Shoals Technologies Group by 51.9% during the first quarter. Wellington Management Group LLP now owns 21,615,890 shares of the company's stock valued at $71,765,000 after acquiring an additional 7,382,548 shares during the last quarter. CenterBook Partners LP acquired a new stake in shares of Shoals Technologies Group in the first quarter valued at approximately $12,489,000. T. Rowe Price Investment Management Inc. acquired a new stake in shares of Shoals Technologies Group in the first quarter valued at approximately $7,712,000. Norges Bank acquired a new stake in shares of Shoals Technologies Group in the fourth quarter valued at approximately $12,472,000. Finally, Pacer Advisors Inc. acquired a new stake in shares of Shoals Technologies Group in the first quarter valued at approximately $5,350,000.

Shoals Technologies Group Stock Performance

The company has a debt-to-equity ratio of 0.25, a current ratio of 2.34 and a quick ratio of 1.58. The stock has a market cap of $816.67 million, a price-to-earnings ratio of 40.88, a PEG ratio of 0.70 and a beta of 1.61. The firm has a fifty day moving average of $5.30 and a 200 day moving average of $4.39.

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.

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