Shoals Technologies Group (NASDAQ:SHLS) Shares Gap Down – Should You Sell?

Shares of Shoals Technologies Group, Inc. (NASDAQ:SHLS) gapped down prior to trading on Wednesday . The stock had previously closed at $5.68, but opened at $5.01. Shoals Technologies Group shares last traded at $4.54, with a volume of 4,781,322 shares trading hands.

Analysts Set New Price Targets

A number of research firms have weighed in on SHLS. Piper Sandler decreased their price target on Shoals Technologies Group from $10.00 to $8.00 and set an “overweight” rating for the company in a research note on Friday, November 22nd. Citigroup upgraded Shoals Technologies Group from a “sell” rating to a “neutral” rating and lifted their target price for the stock from $5.00 to $5.50 in a research note on Thursday, October 3rd. JPMorgan Chase & Co. reduced their target price on Shoals Technologies Group from $14.00 to $12.00 and set an “overweight” rating for the company in a research note on Thursday, October 17th. Cantor Fitzgerald reiterated an “overweight” rating and set a $12.00 target price on shares of Shoals Technologies Group in a research note on Tuesday, September 17th. Finally, Wells Fargo & Company assumed coverage on Shoals Technologies Group in a research note on Monday, October 14th. They set an “equal weight” rating and a $46.00 target price for the company. Three investment analysts have rated the stock with a sell rating, six have assigned a hold rating and fourteen have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $10.64.

Shoals Technologies Group Price Performance

The stock has a market capitalization of $765.15 million, a price-to-earnings ratio of 22.95, a PEG ratio of 0.64 and a beta of 1.64. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.36 and a current ratio of 2.08. The company has a fifty day simple moving average of $5.17 and a two-hundred day simple moving average of $5.55.

Shoals Technologies Group (NASDAQ:SHLS) last announced its quarterly earnings data on Tuesday, November 12th. The company reported $0.08 earnings per share for the quarter, missing the consensus estimate of $0.10 by ($0.02). The company had revenue of $102.20 million during the quarter, compared to analyst estimates of $98.86 million. Shoals Technologies Group had a net margin of 7.78% and a return on equity of 9.83%. Shoals Technologies Group’s revenue was down 23.8% on a year-over-year basis. During the same period in the prior year, the firm earned $0.16 earnings per share. As a group, equities research analysts expect that Shoals Technologies Group, Inc. will post 0.29 earnings per share for the current fiscal year.

Insider Transactions at Shoals Technologies Group

In other Shoals Technologies Group news, CEO Brandon Moss purchased 22,300 shares of the stock in a transaction dated Thursday, November 21st. The stock was bought at an average price of $4.55 per share, with a total value of $101,465.00. Following the acquisition, the chief executive officer now owns 593,700 shares of the company’s stock, valued at approximately $2,701,335. This represents a 3.90 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. In the last quarter, insiders sold 6,460 shares of company stock valued at $30,271. Corporate insiders own 1.67% of the company’s stock.

Hedge Funds Weigh In On Shoals Technologies Group

A number of institutional investors have recently modified their holdings of SHLS. Rhumbline Advisers raised its holdings in shares of Shoals Technologies Group by 9.2% during the 2nd quarter. Rhumbline Advisers now owns 318,700 shares of the company’s stock worth $1,989,000 after buying an additional 26,973 shares in the last quarter. Victory Capital Management Inc. increased its holdings in Shoals Technologies Group by 93.6% in the 2nd quarter. Victory Capital Management Inc. now owns 69,941 shares of the company’s stock worth $436,000 after purchasing an additional 33,807 shares in the last quarter. Federated Hermes Inc. increased its holdings in Shoals Technologies Group by 8,389.5% in the 2nd quarter. Federated Hermes Inc. now owns 1,222,482 shares of the company’s stock worth $7,628,000 after purchasing an additional 1,208,082 shares in the last quarter. Canada Pension Plan Investment Board increased its holdings in Shoals Technologies Group by 92.5% in the 2nd quarter. Canada Pension Plan Investment Board now owns 100,300 shares of the company’s stock worth $626,000 after purchasing an additional 48,200 shares in the last quarter. Finally, Skandinaviska Enskilda Banken AB publ increased its holdings in Shoals Technologies Group by 146.9% in the 2nd quarter. Skandinaviska Enskilda Banken AB publ now owns 157,000 shares of the company’s stock worth $980,000 after purchasing an additional 93,400 shares in the last quarter.

About Shoals Technologies Group

Shoals Technologies Group, Inc provides electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle (EV) charging applications in the United States and internationally. The company designs, manufactures, and sells system solutions for both homerun and combine-as-you-go wiring architectures, as well as offers technical support services.