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

Shoals Technologies Group, Inc. (NASDAQ:SHLS)’s stock price dropped 7.2% during trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $4.00 and last traded at $3.96. Approximately 4,214,938 shares were traded 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 (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.01). The firm had revenue of $107.00 million for the quarter, compared to the consensus estimate of $102.16 million. Shoals Technologies Group had a return on equity of 9.83% and a net margin of 7.78%. The business’s revenue was down 17.9% compared to the same quarter last year. During the same period last year, the company posted $0.12 earnings per share.

Wall Street Analysts Forecast Growth

SHLS has been the subject of several recent research reports. 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 research note on Tuesday, January 28th. UBS Group lowered 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 report on Wednesday. Barclays reduced their price target on Shoals Technologies Group from $5.00 to $4.00 and set an “equal weight” rating on the stock in a research report on Friday, January 17th. Truist Financial cut their price target 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. Finally, Royal Bank of Canada cut their target price on Shoals Technologies Group from $9.00 to $7.00 and set an “outperform” rating for the company in a research note on Wednesday. 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. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $8.95.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Point72 Asset Management L.P. grew its holdings 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 last quarter. Erste Asset Management GmbH bought a new stake in Shoals Technologies Group during the 3rd quarter worth approximately $20,191,000. Norges Bank purchased a new stake in shares of Shoals Technologies Group in the fourth quarter worth approximately $12,472,000. Verition Fund Management LLC lifted its holdings 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 valued at $12,629,000 after purchasing an additional 2,034,291 shares in the last quarter. Finally, Impax Asset Management Group plc lifted its holdings in shares of Shoals Technologies Group by 126.3% in the fourth quarter. Impax Asset Management Group plc now owns 3,469,360 shares of the company’s stock valued at $19,083,000 after purchasing an additional 1,935,983 shares in the last quarter.

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 company has a fifty day moving average of $4.90 and a 200-day moving average of $5.17. The firm has a market cap of $655.96 million, a P/E ratio of 19.63, a P/E/G ratio of 0.52 and a beta of 1.62.

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.