Wall Street Zen Downgrades Shoals Technologies Group (NASDAQ:SHLS) to Hold

Shoals Technologies Group (NASDAQ:SHLS) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday.

A number of other equities analysts also recently issued reports on the company. TD Cowen reiterated a “buy” rating on shares of Shoals Technologies Group in a research note on Tuesday, February 24th. UBS Group dropped their target price on Shoals Technologies Group from $12.00 to $11.00 and set a “buy” rating on the stock in a report on Wednesday, February 25th. BNP Paribas Exane raised Shoals Technologies Group from an “underperform” rating to a “neutral” rating and set a $9.00 target price on the stock in a research report on Wednesday, February 25th. Morgan Stanley lowered their price target on Shoals Technologies Group from $9.50 to $8.50 and set an “equal weight” rating for the company in a research report on Wednesday, February 25th. Finally, Roth Mkm dropped their price objective on Shoals Technologies Group from $15.00 to $10.00 and set a “buy” rating on the stock in a research note on Tuesday, February 24th. Ten investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, Shoals Technologies Group currently has an average rating of “Moderate Buy” and an average price target of $9.71.

Shoals Technologies Group Price Performance

Shares of SHLS opened at $5.93 on Friday. The stock has a market cap of $992.62 million, a P/E ratio of 29.65, a P/E/G ratio of 0.55 and a beta of 1.77. The business’s fifty day moving average is $9.27 and its 200 day moving average is $8.56. The company has a quick ratio of 1.32, a current ratio of 2.03 and a debt-to-equity ratio of 0.23. Shoals Technologies Group has a 12-month low of $2.71 and a 12-month high of $11.36.

Shoals Technologies Group (NASDAQ:SHLS) last released its quarterly earnings data on Tuesday, February 24th. The company reported $0.10 earnings per share for the quarter, missing the consensus estimate of $0.14 by ($0.04). The business had revenue of $148.33 million for the quarter, compared to analyst estimates of $144.52 million. Shoals Technologies Group had a return on equity of 9.10% and a net margin of 7.06%.The business’s quarterly revenue was up 38.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.08 EPS. Sell-side analysts anticipate that Shoals Technologies Group will post 0.29 earnings per share for the current fiscal year.

Insider Buying and Selling at Shoals Technologies Group

In related news, CFO Dominic Bardos sold 4,170 shares of Shoals Technologies Group stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $7.83, for a total value of $32,651.10. Following the completion of the sale, the chief financial officer owned 412,289 shares of the company’s stock, valued at approximately $3,228,222.87. This trade represents a 1.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.52% of the company’s stock.

Hedge Funds Weigh In On Shoals Technologies Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Invesco Ltd. raised its position in shares of Shoals Technologies Group by 5.8% in the fourth quarter. Invesco Ltd. now owns 5,877,652 shares of the company’s stock valued at $49,960,000 after purchasing an additional 323,831 shares during the period. Mercer Global Advisors Inc. ADV grew its stake in Shoals Technologies Group by 20.3% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 13,670 shares of the company’s stock valued at $116,000 after buying an additional 2,304 shares in the last quarter. nVerses Capital LLC bought a new stake in Shoals Technologies Group during the 4th quarter valued at $127,000. Polymer Capital Management US LLC purchased a new stake in shares of Shoals Technologies Group during the fourth quarter worth $201,000. Finally, Interval Partners LP bought a new position in shares of Shoals Technologies Group in the fourth quarter worth $1,357,000.

Key Stories Impacting Shoals Technologies Group

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

• Positive Sentiment: Shoals announced a deployment of critical power systems with ON.energy for a leading AI data‑center operator — a diversification into high-margin, non-solar infrastructure demand that supports longer-term revenue visibility. Shoals Technologies Group and ON.energy to deploy critical power systems for leading AI data center operator
• Positive Sentiment: Shoals reported record Q4 revenue of $148M (up ~38.6% YoY) and full‑year revenue growth of ~19%, showing demand for its balance‑of‑systems products remains strong even as margins are pressured. Shoals reports record $148 million Q4 revenue, full-year growth of 19%
• Neutral Sentiment: Analyst coverage shifted toward neutral/hold: BNP Paribas Exane raised Shoals to “Neutral,” and Benzinga summarized broader analyst expectations — the coverage signals caution rather than conviction. Shoals Technologies Group (NASDAQ:SHLS) Raised to “Neutral” at BNP Paribas Exane
• Neutral Sentiment: Morgan Stanley and Barclays issued new price targets ($8.50 and $9.00 respectively), providing upside from the current level but maintaining cautious stances. These anchor expectations but are not outright buys. Shoals Technologies Group (NASDAQ:SHLS) Given New $8.50 Price Target at Morgan Stanley
• Negative Sentiment: Citigroup trimmed its price target from $11.00 to $8.50 and kept a neutral rating — a downgrade in valuation that puts near‑term upside expectations lower and can pressure the stock. Benzinga
• Negative Sentiment: Shoals posted an EPS miss (reported $0.10 vs. $0.14 expected) and shares gapped down after the print; investors are focused on margin pressure and whether profitability will reaccelerate. Shoals Technologies Group (NASDAQ:SHLS) Shares Gap Down Following Weak Earnings
• Negative Sentiment: Broader solar sector headwinds—tariffs, shifting federal energy policy and softer-than-expected demand—are weighing on investor sentiment for suppliers like Shoals. This sector narrative is amplifying the stock’s decline. Solar Stocks Crashed This Week. Why the Problems Could Last.

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.