Shoals Technologies Group (NASDAQ:SHLS) Trading Down 5% – Should You Sell?

Shares of Shoals Technologies Group, Inc. (NASDAQ:SHLS) traded down 5% during mid-day trading on Monday . The stock traded as low as $4.19 and last traded at $4.19. 585,431 shares were traded during mid-day trading, a decline of 88% from the average session volume of 4,940,746 shares. The stock had previously closed at $4.41.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on SHLS shares. JPMorgan Chase & Co. reduced their price target on Shoals Technologies Group from $14.00 to $12.00 and set an “overweight” rating for the company in a report on Thursday, October 17th. Truist Financial dropped their price target on Shoals Technologies Group from $10.00 to $8.00 and set a “buy” rating for the company in a research report on Friday, September 6th. Piper Sandler lowered their price objective on Shoals Technologies Group from $10.00 to $8.00 and set an “overweight” rating for the company in a research report on Friday, November 22nd. Citigroup upgraded Shoals Technologies Group from a “sell” rating to a “neutral” rating and increased their price objective for the stock from $5.00 to $5.50 in a research report on Thursday, October 3rd. Finally, Morgan Stanley decreased their price target on Shoals Technologies Group from $8.00 to $7.00 and set an “equal weight” rating on the stock in a research note on Friday, November 15th. Three equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and thirteen have given a buy rating to the company’s stock. Based on data from MarketBeat.com, Shoals Technologies Group presently has an average rating of “Hold” and an average price target of $11.31.

Shoals Technologies Group Price 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 stock has a market cap of $723.48 million, a P/E ratio of 22.05, a P/E/G ratio of 0.64 and a beta of 1.69. The company’s 50 day simple moving average is $5.06 and its 200 day simple moving average is $5.77.

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

Insiders Place Their Bets

In related news, CEO Brandon Moss acquired 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, for a total transaction of $101,465.00. Following the purchase, the chief executive officer now directly owns 593,700 shares of the company’s stock, valued at $2,701,335. The trade was a 3.90 % increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have sold 6,460 shares of company stock worth $30,271 over the last ninety days. Corporate insiders own 1.67% of the company’s stock.

Institutional Trading of Shoals Technologies Group

Hedge funds have recently bought and sold shares of the business. Point72 Asset Management L.P. increased its position in shares of Shoals Technologies Group by 460.1% during the third quarter. Point72 Asset Management L.P. now owns 6,844,222 shares of the company’s stock valued at $38,396,000 after buying an additional 5,622,207 shares during the period. Erste Asset Management GmbH bought a new position in shares of Shoals Technologies Group in the third quarter worth approximately $20,191,000. Millennium Management LLC increased its position 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% in the third quarter. Verition Fund Management LLC now owns 2,251,093 shares of the company’s stock worth $12,629,000 after purchasing 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% in the third quarter. Wellington Management Group LLP now owns 13,107,404 shares of the company’s stock worth $73,533,000 after purchasing an additional 1,666,691 shares during the last quarter.

Shoals Technologies Group Company Profile

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.