Shoals Technologies Group (NASDAQ:SHLS) Shares Down 7.2% on Disappointing Earnings

Shoals Technologies Group, Inc. (NASDAQ:SHLS) shares dropped 7.2% during trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $4.00 and last traded at $3.96. Approximately 4,214,938 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 6,579,269 shares. The stock had previously closed at $4.27.

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 business had revenue of $107.00 million for the quarter, compared to the consensus estimate of $102.16 million. During the same period in the prior year, the business posted $0.12 EPS. Shoals Technologies Group’s revenue for the quarter was down 17.9% on a year-over-year basis.

Wall Street Analysts Forecast Growth

SHLS has been the subject of several recent analyst reports. Truist Financial dropped their target price on shares of Shoals Technologies Group from $8.00 to $7.00 and set a “buy” rating for the company in a report on Thursday, January 16th. Piper Sandler decreased their price target on shares of Shoals Technologies Group from $8.00 to $6.00 and set an “overweight” rating for the company in a research note on Wednesday. UBS Group cut their price target on Shoals Technologies Group from $8.00 to $7.00 and set a “buy” rating on the stock in a report on Wednesday. TD Cowen upped their price objective on Shoals Technologies Group from $9.50 to $11.00 and gave the stock a “buy” rating in a research note on Wednesday, November 13th. Finally, The Goldman Sachs Group cut their target price on Shoals Technologies Group from $8.00 to $7.00 and set a “buy” rating on the stock in a research note on Wednesday. Three investment analysts have rated the stock with a sell rating, seven have issued a hold rating and thirteen have issued a buy rating to the company. According to MarketBeat.com, Shoals Technologies Group currently has an average rating of “Hold” and a consensus price target of $8.95.

Institutional Investors Weigh In On Shoals Technologies Group

A number of institutional investors have recently made changes to their positions in SHLS. Vanguard Group Inc. boosted its position in shares of 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 buying an additional 576,736 shares during the period. Wellington Management Group LLP boosted its position in 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 acquiring an additional 1,125,938 shares during the last quarter. Point72 Asset Management L.P. grew its stake 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 acquiring an additional 5,622,207 shares in the last quarter. Invesco Ltd. raised its holdings in shares of 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 purchasing an additional 1,098,577 shares during the last quarter. Finally, Encompass Capital Advisors LLC lifted its position in shares of 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 worth $29,919,000 after purchasing an additional 683,642 shares in the last quarter.

Shoals Technologies Group Price Performance

The firm has a market cap of $655.96 million, a price-to-earnings ratio of 19.63, a PEG ratio of 0.52 and a beta of 1.62. The company’s fifty day moving average is $4.90 and its 200 day moving average is $5.17. The company has a quick ratio of 1.36, a current ratio of 2.08 and a debt-to-equity ratio of 0.26.

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.