Shoals Technologies Group (NASDAQ:SHLS) Shares Gap Up – Should You Buy?

Shoals Technologies Group, Inc. (NASDAQ:SHLS) shares gapped up prior to trading on Tuesday . The stock had previously closed at $9.29, but opened at $9.71. Shoals Technologies Group shares last traded at $9.8080, with a volume of 765,958 shares changing hands.

Analyst Ratings Changes

SHLS has been the topic of a number of recent analyst reports. Needham & Company LLC restated a “buy” rating and issued a $12.00 price target on shares of Shoals Technologies Group in a research report on Wednesday, May 6th. Citigroup raised their price objective on Shoals Technologies Group from $8.50 to $9.50 and gave the company a “neutral” rating in a report on Wednesday, May 6th. UBS Group upped their price target on shares of Shoals Technologies Group from $11.00 to $12.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Weiss Ratings raised Shoals Technologies Group from a “sell (d)” rating to a “sell (d+)” rating in a research note on Friday, May 22nd. Finally, JPMorgan Chase & Co. increased their price target on Shoals Technologies Group from $9.00 to $10.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Ten equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $9.79.

Shoals Technologies Group Stock Performance

The company has a market cap of $1.69 billion, a PE ratio of 50.35, a price-to-earnings-growth ratio of 1.09 and a beta of 1.89. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.07 and a current ratio of 1.84. The company’s 50 day moving average price is $9.63 and its 200-day moving average price is $8.69.

Shoals Technologies Group (NASDAQ:SHLS) last posted its earnings results on Tuesday, May 5th. The company reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.01. The firm had revenue of $140.56 million for the quarter, compared to the consensus estimate of $129.16 million. Shoals Technologies Group had a return on equity of 10.03% and a net margin of 6.27%.The business’s quarterly revenue was up 74.4% on a year-over-year basis. Equities research analysts anticipate that Shoals Technologies Group, Inc. will post 0.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Dominic Bardos sold 54,449 shares of the company’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $8.48, for a total value of $461,727.52. Following the sale, the chief financial officer directly owned 394,979 shares of the company’s stock, valued at $3,349,421.92. This represents a 12.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Bobbie Lee King, Jr. sold 10,000 shares of Shoals Technologies Group stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $10.41, for a total value of $104,100.00. Following the transaction, the insider owned 98,918 shares of the company’s stock, valued at $1,029,736.38. The trade was a 9.18% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.81% of the company’s stock.

Hedge Funds Weigh In On Shoals Technologies Group

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC boosted its holdings in Shoals Technologies Group by 57.7% in the fourth quarter. GAMMA Investing LLC now owns 3,756 shares of the company’s stock worth $32,000 after purchasing an additional 1,375 shares during the last quarter. KBC Group NV bought a new stake in Shoals Technologies Group during the first quarter valued at about $30,000. USA Financial Formulas purchased a new stake in Shoals Technologies Group in the fourth quarter worth about $49,000. PNC Financial Services Group Inc. increased its position in Shoals Technologies Group by 378.0% in the first quarter. PNC Financial Services Group Inc. now owns 7,566 shares of the company’s stock worth $50,000 after buying an additional 5,983 shares in the last quarter. Finally, CIBC Asset Management Inc bought a new position in shares of Shoals Technologies Group in the fourth quarter worth about $85,000.

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.