Shoals Technologies Group (NASDAQ:SHLS) Trading Down 5.8% - Should You Sell?

Key Points

• Shoals Technologies Group (NASDAQ:SHLS) saw its stock price drop 5.8%, closing at $4.60, with trading volume significantly lower than average.
• Analysts are optimistic about SHLS, with several firms upgrading their ratings and price targets, resulting in an average target price of $9.15 and a consensus rating of "Moderate Buy".
• The company reported a revenue increase of 11.7% year-over-year in its latest earnings, with earnings per share of $0.10, beating estimates.

Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report)'s stock price dropped 5.8% during mid-day trading on Thursday . The stock traded as low as $4.60 and last traded at $4.60. Approximately 655,423 shares were traded during trading, a decline of 90% from the average daily volume of 6,332,781 shares. The stock had previously closed at $4.88.

Wall Street Analyst Weigh In

SHLS has been the topic of several research reports. Guggenheim upped their price objective on Shoals Technologies Group from $6.00 to $8.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Roth Capital raised Shoals Technologies Group from a "neutral" rating to a "buy" rating and set a $10.00 price objective on the stock in a report on Thursday, August 7th. Mizuho lowered Shoals Technologies Group from an "outperform" rating to a "neutral" rating and set a $7.00 price target on the stock. in a research report on Monday, July 14th. Wall Street Zen lowered Shoals Technologies Group from a "strong-buy" rating to a "buy" rating in a research report on Sunday. Finally, The Goldman Sachs Group upped their price objective on shares of Shoals Technologies Group from $5.00 to $6.00 and gave the company a "buy" rating in a research report on Wednesday, May 7th. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating and fifteen have issued a buy rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $9.15.

Shoals Technologies Group Trading Up 9.2%

The company has a debt-to-equity ratio of 0.23, a current ratio of 2.34 and a quick ratio of 1.64. The business's 50-day moving average price is $5.30 and its two-hundred day moving average price is $4.40. The company has a market capitalization of $948.09 million, a price-to-earnings ratio of 43.73, a P/E/G ratio of 0.64 and a beta of 1.61.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $0.10 earnings per share for the quarter, beating 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 company had revenue of $110.84 million during the quarter, compared to the consensus estimate of $104.87 million. During the same period in the previous year, the business earned $0.10 earnings per share. The firm's quarterly revenue was up 11.7% on a year-over-year basis. Research analysts predict that Shoals Technologies Group, Inc. will post 0.29 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SHLS. Nisa Investment Advisors LLC boosted its position in Shoals Technologies Group by 449.1% during the second 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 last quarter. MQS Management LLC bought a new stake in Shoals Technologies Group during the first quarter valued at $43,000. Cerity Partners LLC bought a new stake in Shoals Technologies Group during the first quarter valued at $43,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Shoals Technologies Group during the first quarter valued at about $44,000. Finally, Virtu Financial LLC acquired a new position in shares of Shoals Technologies Group during the first quarter valued at about $46,000.

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.