Shoals Technologies Group (NASDAQ:SHLS) Stock Price Down 7.7% – Here’s Why

Shoals Technologies Group, Inc. (NASDAQ:SHLS) dropped 7.7% during mid-day trading on Monday. The company traded as low as $9.29 and last traded at $9.3040. Approximately 625,637 shares were traded during trading, a decline of 88% from the average daily volume of 5,335,273 shares. The stock had previously closed at $10.08.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on SHLS shares. Jefferies Financial Group reduced their price target on shares of Shoals Technologies Group from $12.00 to $11.00 and set a “buy” rating for the company in a research note on Wednesday, October 14th. JPMorgan Chase & Co. lowered their price objective on shares of Shoals Technologies Group from $13.00 to $12.00 and set an “overweight” rating on the stock in a research report on Monday, October 19th. Barclays raised their target price on shares of Shoals Technologies Group from $10.00 to $11.00 and gave the stock an “overweight” rating in a report on Thursday, October 8th. Mizuho cut their target price on shares of Shoals Technologies Group from $11.00 to $10.00 and set a “neutral” rating for the company in a research report on Friday, October 16th. Finally, Royal Bank Of Canada boosted their target price on shares of Shoals Technologies Group from $10.00 to $11.00 and gave the company an “outperform” rating in a research note on Monday. Twelve investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, Shoals Technologies Group currently has a consensus rating of “Moderate Buy” and an average price target of $10.94.

Shoals Technologies Group Price Performance

The company has a current ratio of 2.45, a quick ratio of 1.39 and a debt-to-equity ratio of 0.26. The firm has a 50 day moving average price of $7.79 and a 200 day moving average price of $8.46. The stock has a market capitalization of $1.37 billion, a PE ratio of 35.35, a price-to-earnings-growth ratio of 1.03 and a beta of 1.86.

Shoals Technologies Group (NASDAQ:SHLS) last released its quarterly earnings data on Wednesday, November 4th. The company reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.12 by $0.02. Shoals Technologies Group had a net margin of 5.84% and a return on equity of 10.23%. The firm had revenue of $195.31 million for the quarter, compared to analysts’ expectations of $161.78 million. During the same quarter last year, the business posted $0.12 earnings per share. The company’s revenue for the quarter was up 43.8% compared to the same quarter last year. Research analysts anticipate that Shoals Technologies Group, Inc. will post 0.35 earnings per share for the current year.

Institutional Trading of Shoals Technologies Group

A number of large investors have recently made changes to their positions in SHLS. First Trust Advisors LP increased its stake in Shoals Technologies Group by 15.4% in the 1st quarter. First Trust Advisors LP now owns 7,304,064 shares of the company’s stock worth $48,061,000 after buying an additional 972,382 shares during the period. Handelsbanken Fonder AB boosted its position in Shoals Technologies Group by 31.9% in the 2nd quarter. Handelsbanken Fonder AB now owns 3,766,966 shares of the company’s stock valued at $37,293,000 after buying an additional 912,093 shares during the period. Dimensional Fund Advisors LP boosted its position in Shoals Technologies Group by 31.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,268,794 shares of the company’s stock valued at $28,083,000 after buying an additional 1,016,987 shares during the period. Voya Investment Management LLC boosted its position in Shoals Technologies Group by 100.9% in the 3rd quarter. Voya Investment Management LLC now owns 3,270,715 shares of the company’s stock valued at $26,493,000 after buying an additional 1,642,891 shares during the period. Finally, Redwood Grove Capital LLC grew its stake in Shoals Technologies Group by 20.2% in the 1st quarter. Redwood Grove Capital LLC now owns 3,037,422 shares of the company’s stock worth $19,986,000 after acquiring an additional 511,000 shares in the last quarter.

About Shoals Technologies Group

Shoals Technologies Group designs and supplies electrical balance-of-system (EBOS) solutions used in solar energy projects. Founded in 1996, the company develops equipment and systems that connect solar panels to the electrical grid. Its products include cable assemblies and wiring harnesses, combiner and junction boxes, disconnects, and other components used to collect and manage electricity generated by solar panels. Shoals also offers pre-engineered, plug-and-play solutions intended to simplify installation and maintenance.