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

Shoals Technologies Group, Inc. (NASDAQ:SHLS) shares 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 traded.

Wall Street Analysts Forecast Growth

SHLS has been the subject of a number of recent research reports. Morgan Stanley raised Shoals Technologies Group from an “equal weight” rating to an “overweight” rating and set a $7.00 target price for the company in a report on Tuesday, December 17th. Barclays reduced their price target on Shoals Technologies Group from $7.00 to $5.00 and set an “equal weight” rating on the stock in a research report on Wednesday, November 13th. The Goldman Sachs Group reduced their price target on Shoals Technologies Group from $10.00 to $9.00 and set a “buy” rating on the stock in a research report on Tuesday, December 17th. Guggenheim reduced their price target on Shoals Technologies Group from $8.00 to $7.00 and set a “buy” rating on the stock in a research report on Thursday, November 21st. Finally, Piper Sandler reduced their price target on Shoals Technologies Group from $10.00 to $8.00 and set an “overweight” rating on the stock in a research report on Friday, November 22nd. Three research analysts have rated the stock with a sell rating, six have given a hold rating and fourteen have issued a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $10.64.

Shoals Technologies Group Trading Down 19.2 %

The business has a 50 day moving average of $5.17 and a two-hundred day moving average of $5.55. 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 firm has a market capitalization of $765.15 million, a price-to-earnings ratio of 22.95, a P/E/G ratio of 0.64 and a beta of 1.64.

Shoals Technologies Group (NASDAQ:SHLS) last posted its quarterly earnings results on Tuesday, November 12th. The company reported $0.08 earnings per share for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.02). Shoals Technologies Group had a return on equity of 9.83% and a net margin of 7.78%. The firm had revenue of $102.20 million for the quarter, compared to analyst estimates of $98.86 million. During the same period last year, the company posted $0.16 earnings per share. The firm’s quarterly revenue was down 23.8% compared to the same quarter last year. Equities analysts predict that Shoals Technologies Group, Inc. will post 0.29 EPS for the current year.

Insider Buying and Selling

In related news, CEO Brandon Moss acquired 22,300 shares of the stock in a transaction dated Thursday, November 21st. The stock was purchased at an average cost of $4.55 per share, with a total value of $101,465.00. Following the completion of the purchase, the chief executive officer now directly owns 593,700 shares in the company, valued at $2,701,335. This trade represents a 3.90 % increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In the last three months, insiders have sold 6,460 shares of company stock valued at $30,271. 1.67% of the stock is owned by company insiders.

Institutional Trading of Shoals Technologies Group

Several institutional investors and hedge funds have recently modified their holdings of SHLS. Point72 Asset Management L.P. raised its stake in shares of Shoals Technologies Group by 460.1% in the third quarter. Point72 Asset Management L.P. now owns 6,844,222 shares of the company’s stock worth $38,396,000 after purchasing an additional 5,622,207 shares during the last quarter. Erste Asset Management GmbH purchased a new stake in shares of Shoals Technologies Group in the third quarter worth approximately $20,191,000. Millennium Management LLC raised its stake in shares of Shoals Technologies Group by 262.8% in the second quarter. Millennium Management LLC now owns 3,371,593 shares of the company’s stock worth $21,039,000 after purchasing an additional 2,442,227 shares during the last quarter. Verition Fund Management LLC increased its position in shares of Shoals Technologies Group by 938.3% during the third quarter. Verition Fund Management LLC now owns 2,251,093 shares of the company’s stock valued at $12,629,000 after acquiring an additional 2,034,291 shares during the last quarter. Finally, Wellington Management Group LLP increased its position in shares of Shoals Technologies Group by 14.6% during the third quarter. Wellington Management Group LLP now owns 13,107,404 shares of the company’s stock valued at $73,533,000 after acquiring an additional 1,666,691 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.