Shoals Technologies Group (NASDAQ:SHLS) Shares Up 9.8% - Time to Buy?

Key Points

• Shoals Technologies Group shares jumped 9.8% in midday trading, reaching as high as $10.42 after closing at $9.44 the previous day. Trading volume was below average, with about 2.77 million shares changing hands.
• Recent analyst sentiment remains mixed but generally constructive: 10 analysts rate SHLS a Buy, six Hold, and one Sell. The stock carries a consensus Moderate Buy rating with an average price target of $9.71.
• The company’s latest earnings beat expectations, reporting EPS of $0.07 versus $0.06 expected and revenue of $140.56 million, up 74.4% year over year. Insider selling was also noted, including shares sold by an executive and the CFO.

Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report) rose 9.8% during mid-day trading on Thursday . The company traded as high as $10.42 and last traded at $10.3620. Approximately 2,771,456 shares traded hands during trading, a decline of 47% from the average daily volume of 5,211,705 shares. The stock had previously closed at $9.44.

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. Needham & Company LLC restated a "buy" rating and set a $12.00 price objective on shares of Shoals Technologies Group in a research report on Wednesday, May 6th. Wall Street Zen lowered shares of Shoals Technologies Group from a "buy" rating to a "hold" rating in a research note on Saturday, February 28th. Guggenheim restated a "buy" rating on shares of Shoals Technologies Group in a research note on Friday, May 22nd. Roth Mkm cut their price objective on Shoals Technologies Group from $15.00 to $10.00 and set a "buy" rating for the company in a report on Tuesday, February 24th. Finally, JPMorgan Chase & Co. upped their price objective on Shoals Technologies Group from $9.00 to $10.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Ten research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Shoals Technologies Group has an average rating of "Moderate Buy" and an average price target of $9.71.

Shoals Technologies Group Stock Up 11.9%

The stock has a market capitalization of $1.77 billion, a P/E ratio of 52.87, a P/E/G ratio of 1.21 and a beta of 1.90. The company's 50-day moving average price is $9.12 and its 200 day moving average price is $8.57. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.07 and a current ratio of 1.84.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.06 by $0.01. The business had revenue of $140.56 million during the quarter, compared to analyst estimates of $129.16 million. Shoals Technologies Group had a return on equity of 10.03% and a net margin of 6.27%.The company's revenue was up 74.4% compared to the same quarter last year. As a group, equities analysts expect that Shoals Technologies Group, Inc. will post 0.34 earnings per share for the current year.

Insider Activity at Shoals Technologies Group

In related news, insider Bobbie Lee King, Jr. sold 10,000 shares of the business's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $10.41, for a total value of $104,100.00. Following the transaction, the insider directly owned 98,918 shares of the company's stock, valued at approximately $1,029,736.38. The trade was a 9.18% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Dominic Bardos sold 54,449 shares of the company's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $8.48, for a total value of $461,727.52. Following the completion of the transaction, the chief financial officer owned 394,979 shares of the company's stock, valued at $3,349,421.92. The trade was a 12.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.81% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Shoals Technologies Group

Institutional investors have recently bought and sold shares of the stock. Universal Beteiligungs und Servicegesellschaft mbH lifted its stake in Shoals Technologies Group by 3.7% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 32,055 shares of the company's stock worth $274,000 after purchasing an additional 1,147 shares in the last quarter. GAMMA Investing LLC grew its position in shares of Shoals Technologies Group by 57.7% during the fourth quarter. GAMMA Investing LLC now owns 3,756 shares of the company's stock valued at $32,000 after purchasing an additional 1,375 shares in the last quarter. Bank of Montreal Can increased its holdings in shares of Shoals Technologies Group by 5.1% in the fourth quarter. Bank of Montreal Can now owns 33,510 shares of the company's stock worth $285,000 after purchasing an additional 1,620 shares during the last quarter. Federated Hermes Inc. lifted its position in shares of Shoals Technologies Group by 1.1% in the fourth quarter. Federated Hermes Inc. now owns 165,278 shares of the company's stock worth $1,405,000 after buying an additional 1,812 shares in the last quarter. Finally, Principal Financial Group Inc. lifted its position in shares of Shoals Technologies Group by 0.5% in the first quarter. Principal Financial Group Inc. now owns 394,094 shares of the company's stock worth $2,593,000 after buying an additional 1,883 shares in the last quarter.

About Shoals Technologies Group

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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