Shoals Technologies Group (NASDAQ:SHLS) Trading Down 4.4% – Should You Sell?

Shoals Technologies Group, Inc. (NASDAQ:SHLS) shares were down 4.4% on Tuesday . The stock traded as low as $3.10 and last traded at $3.18. Approximately 758,054 shares traded hands during mid-day trading, a decline of 87% from the average daily volume of 5,639,066 shares. The stock had previously closed at $3.32.

Analyst Upgrades and Downgrades

Several research firms have recently commented on SHLS. Morgan Stanley raised shares of Shoals Technologies Group from an “equal weight” rating to an “overweight” rating and set a $7.00 price target on the stock in a research note on Tuesday, December 17th. Piper Sandler decreased their target price on Shoals Technologies Group from $8.00 to $6.00 and set an “overweight” rating for the company in a research report on Wednesday, February 26th. Oppenheimer reduced their price target on Shoals Technologies Group from $11.00 to $10.00 and set an “outperform” rating for the company in a report on Tuesday, January 28th. Barclays dropped their price objective on Shoals Technologies Group from $5.00 to $4.00 and set an “equal weight” rating on the stock in a research note on Friday, January 17th. Finally, Wolfe Research initiated coverage on Shoals Technologies Group in a research note on Tuesday, February 18th. They set a “peer perform” rating for the company. Three analysts have rated the stock with a sell rating, seven have assigned a hold rating and thirteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, Shoals Technologies Group presently has a consensus rating of “Hold” and a consensus target price of $8.87.

Shoals Technologies Group Stock Performance

The company has a debt-to-equity ratio of 0.26, a current ratio of 2.08 and a quick ratio of 1.36. The company has a market capitalization of $544.40 million, a price-to-earnings ratio of 16.30, a P/E/G ratio of 0.52 and a beta of 1.69. The business’s 50-day moving average price is $3.79 and its two-hundred day moving average price is $4.75.

Shoals Technologies Group (NASDAQ:SHLS) last released its earnings results on Wednesday, February 26th. The company reported $0.08 earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.01). Shoals Technologies Group had a net margin of 7.78% and a return on equity of 9.83%. The company had revenue of $107.00 million for the quarter, compared to the consensus estimate of $102.16 million. During the same quarter in the previous year, the company posted $0.12 earnings per share. The business’s revenue was down 17.9% compared to the same quarter last year. Research analysts predict that Shoals Technologies Group, Inc. will post 0.29 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Brandon Moss sold 21,700 shares of the business’s stock in a transaction that occurred on Wednesday, March 5th. The shares were sold at an average price of $3.07, for a total value of $66,619.00. Following the completion of the transaction, the chief executive officer now directly owns 1,051,303 shares in the company, valued at approximately $3,227,500.21. The trade was a 2.02 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have sold 40,575 shares of company stock worth $123,957 over the last ninety days. Corporate insiders own 1.67% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in Shoals Technologies Group by 3.5% during the fourth quarter. Vanguard Group Inc. now owns 17,163,583 shares of the company’s stock worth $94,915,000 after purchasing an additional 576,736 shares during the last quarter. Wellington Management Group LLP raised its holdings in shares of Shoals Technologies Group by 8.6% during the 4th quarter. Wellington Management Group LLP now owns 14,233,342 shares of the company’s stock worth $78,710,000 after buying an additional 1,125,938 shares in the last quarter. Point72 Asset Management L.P. lifted its position in shares of Shoals Technologies Group by 460.1% during the 3rd quarter. Point72 Asset Management L.P. now owns 6,844,222 shares of the company’s stock worth $38,396,000 after buying an additional 5,622,207 shares during the last quarter. Invesco Ltd. boosted its stake in Shoals Technologies Group by 20.7% in the fourth quarter. Invesco Ltd. now owns 6,415,911 shares of the company’s stock valued at $35,480,000 after buying an additional 1,098,577 shares in the last quarter. Finally, Encompass Capital Advisors LLC grew its position in Shoals Technologies Group by 14.5% in the fourth quarter. Encompass Capital Advisors LLC now owns 5,410,245 shares of the company’s stock valued at $29,919,000 after acquiring an additional 683,642 shares during 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.