Shoals Technologies Group (NASDAQ:SHLS) Shares Gap Up - Should You Buy?

Key Points

• Shoals Technologies Group's stock opened at $5.40 after closing at $5.19, showing significant trading activity with a volume of 1,306,220 shares on Monday.
• Analysts have varied opinions on the stock, with Goldman Sachs raising the price target to $6.00 while BNP Paribas Exane downgraded it to $4.00, resulting in a consensus rating of "Moderate Buy" with a target price of $9.15.
• In its latest earnings report, Shoals Technologies Group surpassed expectations with $110.84 million in revenue and an earnings per share (EPS) of $0.10, maintaining a net margin of 5.27%.

Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $5.19, but opened at $5.40. Shoals Technologies Group shares last traded at $5.60, with a volume of 1,306,220 shares changing hands.

Analysts Set New Price Targets

Several analysts recently weighed in on SHLS shares. Jefferies Financial Group upgraded shares of Shoals Technologies Group from a "hold" rating to a "buy" rating and lifted their price objective for the company from $4.90 to $7.20 in a research report on Monday, July 7th. Guggenheim lifted their price objective on shares of Shoals Technologies Group from $6.00 to $8.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Roth Capital upgraded shares of Shoals Technologies Group from a "neutral" rating to a "buy" rating and set a $10.00 price objective on the stock in a research report on Thursday, August 7th. Mizuho downgraded shares of Shoals Technologies Group from an "outperform" rating to a "neutral" rating and set a $7.00 price objective on the stock. in a research report on Monday, July 14th. Finally, Citigroup boosted their price target 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. Fourteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Shoals Technologies Group presently has an average rating of "Moderate Buy" and an average price target of $9.15.

Shoals Technologies Group Price Performance

The company has a current ratio of 2.34, a quick ratio of 1.64 and a debt-to-equity ratio of 0.23. The business's fifty day moving average is $5.36 and its 200 day moving average is $4.43. The firm has a market capitalization of $998.30 million, a P/E ratio of 45.89, a P/E/G ratio of 0.75 and a beta of 1.61.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $0.10 EPS for the quarter, topping analysts' consensus estimates 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 the consensus estimate of $104.87 million. During the same period in the previous year, the firm earned $0.10 EPS. The business's revenue for the quarter was up 11.7% on a year-over-year basis. Shoals Technologies Group has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, analysts forecast that Shoals Technologies Group, Inc. will post 0.29 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. FORA Capital LLC increased its position in shares of Shoals Technologies Group by 288.5% in the second quarter. FORA Capital LLC now owns 59,558 shares of the company's stock worth $253,000 after acquiring an additional 44,229 shares in the last quarter. Tower Research Capital LLC TRC increased its position in shares of Shoals Technologies Group by 468.3% in the second quarter. Tower Research Capital LLC TRC now owns 15,519 shares of the company's stock worth $66,000 after acquiring an additional 12,788 shares in the last quarter. Redwood Grove Capital LLC increased its position in shares of Shoals Technologies Group by 8.3% in the second quarter. Redwood Grove Capital LLC now owns 3,264,805 shares of the company's stock worth $13,875,000 after acquiring an additional 250,000 shares in the last quarter. Peconic Partners LLC increased its position in shares of Shoals Technologies Group by 79.8% in the second quarter. Peconic Partners LLC now owns 6,975,186 shares of the company's stock worth $29,645,000 after acquiring an additional 3,095,186 shares in the last quarter. Finally, Man Group plc increased its position in shares of Shoals Technologies Group by 58.2% in the second quarter. Man Group plc now owns 187,397 shares of the company's stock worth $796,000 after acquiring an additional 68,947 shares in the last quarter.

Shoals Technologies Group Company Profile

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.