Shoals Technologies Group (NASDAQ:SHLS) Shares Up 7.6% - Should You Buy?

Key Points

• Shoals Technologies Group's stock price increased by 7.6% to reach $9.95, despite trading volume decreasing by 60% compared to the average session.
• Analysts are optimistic about the stock, with multiple brokerages raising their price targets and maintaining a majority "buy" rating, indicating confidence in its growth potential.
• The company reported a quarterly earnings beat, with a revenue increase of 11.7% year-over-year, reflecting positive financial performance despite its high P/E ratio of 80.35.

Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report) shot up 7.6% during mid-day trading on Tuesday . The company traded as high as $9.85 and last traded at $9.95. 2,470,474 shares changed hands during mid-day trading, a decline of 60% from the average session volume of 6,253,911 shares. The stock had previously closed at $9.25.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on SHLS. UBS Group increased their price objective on shares of Shoals Technologies Group from $7.00 to $9.00 and gave the company a "buy" rating in a research report on Wednesday, October 1st. Roth Capital raised Shoals Technologies Group from a "neutral" rating to a "buy" rating and set a $10.00 price target for the company in a report on Thursday, August 7th. Guggenheim increased 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 note on Wednesday, August 6th. Wall Street Zen lowered Shoals Technologies Group from a "strong-buy" rating to a "buy" rating in a research note on Sunday, August 17th. Finally, Jefferies Financial Group increased their target price on shares of Shoals Technologies Group from $6.00 to $9.00 and gave the company a "buy" rating in a research report on Monday, September 8th. Fourteen investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Shoals Technologies Group has an average rating of "Moderate Buy" and an average price target of $7.47.

Shoals Technologies Group Price Performance

The company has a market cap of $1.75 billion, a P/E ratio of 80.35, a P/E/G ratio of 1.05 and a beta of 1.65. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.64 and a current ratio of 2.34. The firm has a 50 day moving average price of $6.85 and a two-hundred day moving average price of $5.44.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $0.10 earnings per share (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 firm had revenue of $110.84 million for the quarter, compared to the consensus estimate of $104.87 million. During the same period in the prior year, the firm posted $0.10 earnings per share. The company'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. On average, analysts predict that Shoals Technologies Group, Inc. will post 0.29 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Nisa Investment Advisors LLC boosted its holdings in Shoals Technologies Group by 449.1% during the 2nd quarter. Nisa Investment Advisors LLC now owns 7,226 shares of the company's stock valued at $31,000 after acquiring an additional 5,910 shares during the period. Cerity Partners LLC bought a new position in shares of Shoals Technologies Group during the first quarter valued at approximately $43,000. MQS Management LLC purchased a new stake in Shoals Technologies Group in the first quarter worth about $43,000. Caitong International Asset Management Co. Ltd purchased a new stake in Shoals Technologies Group in the first quarter worth $44,000. Finally, Virtu Financial LLC purchased a new position in Shoals Technologies Group during the 1st quarter valued at about $46,000.

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.

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