Shoals Technologies Group (NASDAQ:SHLS) Shares Gap Down – Here’s Why

Shares of Shoals Technologies Group, Inc. (NASDAQ:SHLS) gapped down before the market opened 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 changing hands.

Analyst Upgrades and Downgrades

SHLS has been the topic of several analyst reports. Citigroup upgraded shares of Shoals Technologies Group from a “sell” rating to a “neutral” rating and raised their price target for the company from $5.00 to $5.50 in a research report on Thursday, October 3rd. Barclays dropped their price target on shares of Shoals Technologies Group from $5.00 to $4.00 and set an “equal weight” rating on the stock in a research report on Friday. Guggenheim decreased their price objective on shares of Shoals Technologies Group from $8.00 to $7.00 and set a “buy” rating on the stock in a report on Thursday, November 21st. Truist Financial decreased their price target on shares of Shoals Technologies Group from $8.00 to $7.00 and set a “buy” rating on the stock in a research note on Thursday. Finally, Morgan Stanley raised shares of Shoals Technologies Group from an “equal weight” rating to an “overweight” rating and set a $7.00 target price on the stock in a research note on Tuesday, December 17th. Three equities 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’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $10.55.

Shoals Technologies Group Stock Performance

The firm’s 50 day moving average is $5.12 and its two-hundred day moving average is $5.54. The stock has a market capitalization of $778.49 million, a PE ratio of 23.35, a P/E/G ratio of 0.67 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.

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

Insider Buying and Selling at Shoals Technologies Group

In related news, CEO Brandon Moss bought 22,300 shares of the stock in a transaction dated Thursday, November 21st. The stock was acquired at an average price of $4.55 per share, for a total transaction of $101,465.00. Following the acquisition, the chief executive officer now owns 593,700 shares in the company, valued at approximately $2,701,335. This represents a 3.90 % increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In the last three months, insiders have sold 6,460 shares of company stock valued at $30,271. Insiders own 0.36% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Wellington Management Group LLP boosted its holdings in shares of Shoals Technologies Group by 14.6% in the 3rd quarter. Wellington Management Group LLP now owns 13,107,404 shares of the company’s stock valued at $73,533,000 after buying an additional 1,666,691 shares in the last quarter. Point72 Asset Management L.P. boosted its holdings in shares of Shoals Technologies Group by 460.1% in the 3rd 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 in the last quarter. Franklin Resources Inc. boosted its holdings in shares of Shoals Technologies Group by 16.1% in the 3rd quarter. Franklin Resources Inc. now owns 4,748,673 shares of the company’s stock valued at $24,836,000 after buying an additional 658,617 shares in the last quarter. Erste Asset Management GmbH acquired a new position in shares of Shoals Technologies Group in the 3rd quarter valued at $20,191,000. Finally, Millennium Management LLC boosted its holdings in shares of Shoals Technologies Group by 262.8% in the 2nd quarter. Millennium Management LLC now owns 3,371,593 shares of the company’s stock valued at $21,039,000 after buying an additional 2,442,227 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.