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

Key Points

• Shoals gapped up on an earnings beat: Q1 EPS was $0.07 versus $0.06 expected and revenue was $140.56M (vs. $129.16M est.), up 74.4% year-over-year; the stock opened at $9.23 (prior close $8.27) and traded about 2.45M shares.
• Analyst sentiment is mixed but mildly positive: MarketBeat shows a consensus rating of Moderate Buy (10 Buy, 6 Hold, 1 Sell) with a $9.43 target, while several firms have recently trimmed price targets and ratings.
• Company fundamentals show a $1.40B market cap, P/E of 41.84 and PEG of 0.93, with low leverage (debt/equity 0.23) and solid liquidity (current ratio 2.03).

Shares of Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $8.27, but opened at $9.23. Shoals Technologies Group shares last traded at $7.97, with a volume of 2,448,744 shares trading hands.

The company reported $0.07 earnings per share for the quarter, topping analysts' consensus estimates of $0.06 by $0.01. The firm had revenue of $140.56 million during the quarter, compared to analysts' expectations of $129.16 million. Shoals Technologies Group had a net margin of 7.06% and a return on equity of 9.10%. The company's revenue was up 74.4% compared to the same quarter last year.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the stock. Wall Street Zen cut shares of Shoals Technologies Group from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Citigroup lowered their price objective on shares of Shoals Technologies Group from $11.00 to $8.50 and set a "neutral" rating for the company in a research report on Thursday, February 26th. Needham & Company LLC lowered their price objective on shares of Shoals Technologies Group from $14.00 to $12.00 and set a "buy" rating for the company in a research report on Wednesday, February 25th. Guggenheim reduced 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 report on Wednesday, February 25th. Finally, BNP Paribas Exane upgraded shares of Shoals Technologies Group from an "underperform" rating to a "neutral" rating and set a $9.00 target price on the stock in a report on Wednesday, February 25th. Ten equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $9.43.

Institutional Investors Weigh In On Shoals Technologies Group

A number of hedge funds have recently added to or reduced their stakes in SHLS. GAMMA Investing LLC lifted its holdings in Shoals Technologies Group by 57.7% during the 4th quarter. GAMMA Investing LLC now owns 3,756 shares of the company's stock worth $32,000 after buying an additional 1,375 shares in the last quarter. USA Financial Formulas acquired a new stake in shares of Shoals Technologies Group in the 4th quarter valued at $49,000. State of Alaska Department of Revenue acquired a new stake in shares of Shoals Technologies Group in the 3rd quarter valued at $54,000. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Shoals Technologies Group in the 1st quarter valued at $57,000. Finally, Tower Research Capital LLC TRC boosted its position in shares of Shoals Technologies Group by 468.3% during the 2nd 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.

Shoals Technologies Group Trading Up 1.2%

The company has a 50-day moving average price of $6.81 and a 200-day moving average price of $8.38. The firm has a market capitalization of $1.40 billion, a price-to-earnings ratio of 41.84, a PEG ratio of 0.93 and a beta of 1.74. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.32 and a current ratio of 2.03.

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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