Morgan Stanley Lowers Shoals Technologies Group (NASDAQ:SHLS) Price Target to $8.50

Shoals Technologies Group (NASDAQ:SHLS) had its target price reduced by Morgan Stanley from $9.50 to $8.50 in a research report issued on Wednesday,Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Morgan Stanley’s price objective would suggest a potential upside of 20.82% from the company’s previous close.

A number of other research analysts have also recently issued reports on SHLS. The Goldman Sachs Group reiterated a “buy” rating on shares of Shoals Technologies Group in a research note on Monday, February 9th. Guggenheim lowered their target price on Shoals Technologies Group from $12.00 to $11.00 and set a “buy” rating for the company in a research note on Wednesday. Weiss Ratings reiterated a “hold (c)” rating on shares of Shoals Technologies Group in a report on Friday, January 9th. Royal Bank Of Canada decreased their price objective on Shoals Technologies Group from $10.00 to $9.00 and set an “outperform” rating for the company in a report on Wednesday. Finally, Zacks Research lowered shares of Shoals Technologies Group from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, November 19th. Eleven analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, Shoals Technologies Group has a consensus rating of “Moderate Buy” and a consensus price target of $9.33.

Shoals Technologies Group Trading Up 2.9%

NASDAQ SHLS traded up $0.20 on Wednesday, hitting $7.04. 3,136,373 shares of the stock were exchanged, compared to its average volume of 4,522,485. The company’s 50-day moving average price is $9.41 and its two-hundred day moving average price is $8.52. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.19 and a quick ratio of 1.53. Shoals Technologies Group has a 52-week low of $2.71 and a 52-week high of $11.36. The company has a market capitalization of $1.18 billion, a price-to-earnings ratio of 35.18, a P/E/G ratio of 0.84 and a beta of 1.70.

Shoals Technologies Group (NASDAQ:SHLS) last issued its quarterly earnings results on Tuesday, February 24th. The company reported $0.10 earnings per share for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.04). The business had revenue of $148.33 million for the quarter, compared to analysts’ expectations of $144.52 million. Shoals Technologies Group had a net margin of 7.66% and a return on equity of 8.50%. The business’s quarterly revenue was up 38.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.08 EPS. Research analysts predict that Shoals Technologies Group will post 0.29 EPS for the current year.

Insider Activity at Shoals Technologies Group

In related news, CFO Dominic Bardos sold 4,170 shares of the business’s stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $7.83, for a total value of $32,651.10. Following the transaction, the chief financial officer directly owned 412,289 shares of the company’s stock, valued at approximately $3,228,222.87. The trade was a 1.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.52% of the stock is owned by insiders.

Institutional Investors Weigh In On Shoals Technologies Group

Several large investors have recently bought and sold shares of the business. Nisa Investment Advisors LLC grew its position in shares of Shoals Technologies Group by 449.1% in the second quarter. Nisa Investment Advisors LLC now owns 7,226 shares of the company’s stock valued at $31,000 after purchasing an additional 5,910 shares in the last quarter. GAMMA Investing LLC lifted its position in Shoals Technologies Group by 57.7% in the fourth quarter. GAMMA Investing LLC now owns 3,756 shares of the company’s stock valued at $32,000 after buying an additional 1,375 shares during the last quarter. USA Financial Formulas purchased a new position in Shoals Technologies Group during the fourth quarter worth about $49,000. Savant Capital LLC acquired a new stake in shares of Shoals Technologies Group during the second quarter valued at about $50,000. Finally, Ethic Inc. purchased a new stake in shares of Shoals Technologies Group in the 2nd quarter valued at approximately $54,000.

Shoals Technologies Group News Roundup

Here are the key news stories impacting Shoals Technologies Group this week:

• Positive Sentiment: Record Q4 revenue, record backlog and firm 2026 guidance — Shoals reported Q4 revenue of $148.3M (+39% y/y), a backlog/awarded orders of $747.6M, and full‑year 2026 revenue guidance of $560–$600M with adjusted EBITDA guidance of $110–$130M, supporting multi‑year growth visibility. CORRECTED PRESS RELEASE: Shoals Technologies Group, Inc. Reports Financial Results for Fourth Quarter 2025
• Positive Sentiment: Analyst upgrade — BNP Paribas Exane raised its rating from “underperform” to “neutral” and set a $9 PT, narrowing negative analyst pressure and signaling some confidence in the company’s outlook. (No article link provided.)
• Positive Sentiment: Commercial win / product diversification — Shoals and ON.energy will deploy critical‑power systems for a leading AI data‑center operator, showing traction outside core utility solar (BESS/data center exposure). Shoals Technologies Group and ON.energy to Deploy Critical-Power Systems for Leading AI Data-Center Operator
• Neutral Sentiment: Price target adjustment — Needham lowered its PT from $14 to $12 but kept a “buy” rating; that reduces some upside expectations while still implying substantial appreciation vs. the current price. Benzinga
• Negative Sentiment: EPS miss and market reaction — Shoals reported adjusted diluted EPS of $0.10 vs. consensus ~$0.14; the earnings shortfall has triggered selling pressure despite the revenue beat. Shoals Technologies Group (SHLS) Lags Q4 Earnings Estimates
• Negative Sentiment: Q1/near‑term profitability concerns — Analysts and coverage noted that Q1 adjusted EBITDA guidance and commentary signal a potential near‑term slowdown and margin pressure; that mismatch to expectations drove further downside. Shoals Technologies declines as Q1 outlook signals sharp slowdown
• Negative Sentiment: Margin and cost headwinds — Management flagged a 600 bps decline in gross margin (to ~31.6%) driven by higher material costs, duties/tariffs and elevated legal/professional expenses (litigation related), which could compress near‑term profitability even as top line grows. Shoals Technologies: Tariff Impacts Are Real And May Continue (Earnings Review)

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.