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

Shoals Technologies Group (NASDAQ:SHLS) had its target price decreased by equities research analysts at Morgan Stanley from $9.50 to $8.50 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has an “equal weight” rating on the stock. Morgan Stanley’s target price would suggest a potential upside of 20.82% from the company’s current price.

Several other brokerages also recently issued reports on SHLS. The Goldman Sachs Group restated a “buy” rating on shares of Shoals Technologies Group in a research note on Monday, February 9th. UBS Group boosted their target price on shares of Shoals Technologies Group from $9.00 to $12.00 and gave the company a “buy” rating in a research note on Wednesday, November 5th. TD Cowen reiterated a “buy” rating on shares of Shoals Technologies Group in a research report on Tuesday. Roth Mkm decreased their price objective on shares of Shoals Technologies Group from $15.00 to $10.00 and set a “buy” rating on the stock in a research note on Tuesday. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Shoals Technologies Group in a research note on Friday, January 9th. Eleven research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, Shoals Technologies Group currently has an average rating of “Moderate Buy” and an average target price of $9.33.

Shoals Technologies Group Stock Up 2.9%

Shares of SHLS traded up $0.20 during mid-day trading on Wednesday, hitting $7.04. 3,136,373 shares of the company’s stock were exchanged, compared to its average volume of 4,522,485. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.53 and a current ratio of 2.19. The company has a market cap 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. The stock’s 50-day moving average is $9.41 and its 200-day moving average is $8.52. Shoals Technologies Group has a fifty-two week low of $2.71 and a fifty-two week high of $11.36.

Shoals Technologies Group (NASDAQ:SHLS) last posted its quarterly earnings data 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). Shoals Technologies Group had a return on equity of 8.50% and a net margin of 7.66%.The company had revenue of $148.33 million for the quarter, compared to analysts’ expectations of $144.52 million. During the same period in the prior year, the company posted $0.08 EPS. The firm’s revenue was up 38.6% compared to the same quarter last year. On average, sell-side analysts anticipate that Shoals Technologies Group will post 0.29 earnings per share for the current fiscal year.

Insider Activity at Shoals Technologies Group

In related news, CFO Dominic Bardos sold 4,170 shares of the firm’s stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $7.83, for a total transaction of $32,651.10. Following the sale, 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 document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 0.52% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Dynamic Technology Lab Private Ltd boosted its holdings in Shoals Technologies Group by 815.6% in the second quarter. Dynamic Technology Lab Private Ltd now owns 157,946 shares of the company’s stock worth $671,000 after acquiring an additional 140,696 shares in the last quarter. Ruffer LLP acquired a new stake in shares of Shoals Technologies Group in the 3rd quarter worth approximately $2,735,000. Financial Enhancement Group LLC acquired a new position in Shoals Technologies Group during the third quarter valued at approximately $832,000. American Century Companies Inc. lifted its position in Shoals Technologies Group by 128.3% during the 2nd quarter. American Century Companies Inc. now owns 2,754,266 shares of the company’s stock worth $11,706,000 after acquiring an additional 1,548,094 shares in the last quarter. Finally, Great Lakes Advisors LLC purchased a new position in shares of Shoals Technologies Group in the third quarter valued at $1,546,000.

Shoals Technologies Group News Summary

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.