Shoals Technologies Group (NASDAQ:SHLS) Sees Strong Trading Volume Following Better-Than-Expected Earnings

Shoals Technologies Group, Inc. (NASDAQ:SHLS) saw unusually-strong trading volume on Wednesday following a stronger than expected earnings report. 8,700,643 shares traded hands during mid-day trading, an increase of 69% from the average daily volume of 5,163,079 shares. The stock last traded at $9.3430 and had previously closed at $8.47.

The company reported $0.14 earnings per share for the quarter, beating analysts’ consensus estimates of $0.12 by $0.02. The company had revenue of $195.31 million during the quarter, compared to analysts’ expectations of $161.78 million. Shoals Technologies Group had a net margin of 5.41% and a return on equity of 10.07%. The firm’s revenue for the quarter was up 43.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.12 earnings per share.

Wall Street Analyst Weigh In

SHLS has been the subject of several recent analyst reports. Jefferies Financial Group cut their price target on Shoals Technologies Group from $12.00 to $11.00 and set a “buy” rating for the company in a research note on Wednesday, October 14th. Barclays increased their price target on Shoals Technologies Group from $10.00 to $11.00 and gave the stock an “overweight” rating in a research report on Thursday, October 8th. Citigroup reissued a “neutral” rating on shares of Shoals Technologies Group in a report on Wednesday, July 22nd. Mizuho cut their price objective on Shoals Technologies Group from $11.00 to $10.00 and set a “neutral” rating for the company in a research report on Friday, October 16th. Finally, JPMorgan Chase & Co. reduced their target price on Shoals Technologies Group from $13.00 to $12.00 and set an “overweight” rating for the company in a research note on Monday, October 19th. Eleven equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $10.80.

Institutional Investors Weigh In On Shoals Technologies Group

A number of large investors have recently modified their holdings of SHLS. Heartland Advisors Inc. acquired a new stake in shares of Shoals Technologies Group in the first quarter valued at about $6,950,000. Dimensional Fund Advisors LP lifted its stake in shares of Shoals Technologies Group by 31.3% in the first quarter. Dimensional Fund Advisors LP now owns 4,268,794 shares of the company’s stock worth $28,083,000 after buying an additional 1,016,987 shares in the last quarter. First Trust Advisors LP boosted its position in Shoals Technologies Group by 15.4% during the first quarter. First Trust Advisors LP now owns 7,304,064 shares of the company’s stock worth $48,061,000 after acquiring an additional 972,382 shares during the last quarter. Handelsbanken Fonder AB boosted its position in Shoals Technologies Group by 31.9% during the second quarter. Handelsbanken Fonder AB now owns 3,766,966 shares of the company’s stock worth $37,293,000 after acquiring an additional 912,093 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its stake in Shoals Technologies Group by 26.8% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,728,998 shares of the company’s stock valued at $17,957,000 after acquiring an additional 576,591 shares in the last quarter.

Shoals Technologies Group Stock Performance

The company has a market cap of $1.57 billion, a PE ratio of 48.79, a PEG ratio of 0.91 and a beta of 1.86. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.12 and a current ratio of 2.25. The firm’s 50 day moving average is $7.60 and its 200-day moving average is $8.47.

About Shoals Technologies Group

Shoals Technologies Group, Inc develops electrical balance-of-system (EBOS) solutions for solar energy projects. Its products connect, protect, combine and monitor the direct-current electrical output of solar panels before electricity is converted and delivered to the broader power system.

The company’s product portfolio includes wire harnesses, junction boxes, inline fuses, disconnects, recombiners, communication and monitoring equipment, and other electrical components used in photovoltaic installations.