Shoals Technologies Group (NASDAQ:SHLS) Shares Gap Down After Earnings Miss

Shoals Technologies Group, Inc. (NASDAQ:SHLS)’s share price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $9.90, but opened at $8.28. Shoals Technologies Group shares last traded at $7.7250, with a volume of 5,362,831 shares.

The company reported $0.10 EPS for the quarter, missing the consensus estimate of $0.14 by ($0.04). The firm had revenue of $148.33 million for the quarter, compared to analysts’ expectations of $144.52 million. Shoals Technologies Group had a return on equity of 8.50% and a net margin of 7.66%.Shoals Technologies Group’s quarterly revenue was up 38.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.08 earnings per share.

Wall Street Analyst Weigh In

SHLS has been the topic of several recent research reports. UBS Group lifted their target price on shares of Shoals Technologies Group from $9.00 to $12.00 and gave the stock a “buy” rating in a research note on Wednesday, November 5th. Weiss Ratings reiterated a “hold (c)” rating on shares of Shoals Technologies Group in a research report on Friday, January 9th. Guggenheim upped their target price on Shoals Technologies Group from $8.00 to $12.00 and gave the company a “buy” rating in a report on Tuesday, November 11th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $9.50 target price (down from $11.00) on shares of Shoals Technologies Group in a research note on Tuesday, December 16th. Finally, Wells Fargo & Company boosted their price target on shares of Shoals Technologies Group from $6.00 to $10.00 and gave the company an “equal weight” rating in a research report on Thursday, November 6th. Ten analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $9.40.

Insider Buying and Selling

In other Shoals Technologies Group news, CFO Dominic Bardos sold 4,170 shares of the stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $7.83, for a total transaction of $32,651.10. Following the completion of the transaction, the chief financial officer owned 412,289 shares of the company’s stock, valued at $3,228,222.87. This trade represents a 1.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.52% of the stock is owned by insiders.

Hedge Funds Weigh In On Shoals Technologies Group

A number of hedge funds have recently made changes to their positions in SHLS. Vanguard Group Inc. raised its position in Shoals Technologies Group by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 13,594,139 shares of the company’s stock valued at $115,550,000 after purchasing an additional 404,133 shares during the period. Encompass Capital Advisors LLC acquired a new stake in shares of Shoals Technologies Group in the second quarter valued at $56,120,000. Price T Rowe Associates Inc. MD grew its stake in shares of Shoals Technologies Group by 151.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 12,753,784 shares of the company’s stock valued at $108,410,000 after buying an additional 7,685,515 shares in the last quarter. Peconic Partners LLC raised its holdings in shares of Shoals Technologies Group by 79.8% in the 2nd quarter. Peconic Partners LLC now owns 6,975,186 shares of the company’s stock valued at $29,645,000 after buying an additional 3,095,186 shares during the period. Finally, First Trust Advisors LP lifted its stake in Shoals Technologies Group by 1,493.0% during the 4th quarter. First Trust Advisors LP now owns 6,331,682 shares of the company’s stock worth $53,819,000 after acquiring an additional 5,934,223 shares in the last quarter.

Shoals Technologies Group Stock Down 23.0%

The company has a market capitalization of $1.28 billion, a PE ratio of 38.39, a PEG ratio of 0.90 and a beta of 1.70. The company has a current ratio of 2.19, a quick ratio of 1.53 and a debt-to-equity ratio of 0.21. The business has a fifty day moving average of $9.45 and a 200 day moving average of $8.51.

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.