Shoals Technologies Group (NASDAQ:SHLS) Shares Gap Down - Should You Sell?

Shares of Shoals Technologies Group, Inc. (NASDAQ:SHLS - Get Free Report) gapped down prior to trading 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.

Analyst Upgrades and Downgrades

Several analysts have weighed in on SHLS shares. Piper Sandler cut their price objective on Shoals Technologies Group from $10.00 to $8.00 and set an "overweight" rating on the stock in a research report on Friday, November 22nd. Citigroup upgraded Shoals Technologies Group from a "sell" rating to a "neutral" rating and lifted their price target for the company from $5.00 to $5.50 in a research report on Thursday, October 3rd. Guggenheim decreased their price objective on Shoals Technologies Group from $8.00 to $7.00 and set a "buy" rating for the company in a report on Thursday, November 21st. TD Cowen raised their price objective on Shoals Technologies Group from $9.50 to $11.00 and gave the company a "buy" rating in a research report on Wednesday, November 13th. Finally, Bank of America initiated coverage on shares of Shoals Technologies Group in a research report on Monday, November 25th. They issued a "buy" rating and a $6.00 target price on the stock. Three analysts have rated the stock with a sell rating, six have assigned a hold rating and fourteen have issued a buy rating to the stock. Based on data from MarketBeat.com, Shoals Technologies Group presently has an average rating of "Hold" and an average target price of $10.55.

Shoals Technologies Group Trading Down 0.7 %

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's 50-day moving average is $5.12 and its two-hundred day moving average is $5.54. The company has a market cap of $772.65 million, a P/E ratio of 23.18, a P/E/G ratio of 0.67 and a beta of 1.64.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) last released its quarterly earnings results on Tuesday, November 12th. The company reported $0.08 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.10 by ($0.02). The firm had revenue of $102.20 million during the quarter, compared to analysts' expectations 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 quarterly revenue was down 23.8% on a year-over-year basis. During the same quarter last year, the business earned $0.16 earnings per share. As a group, equities research analysts predict that Shoals Technologies Group, Inc. will post 0.29 earnings per share for the current fiscal year.

Insider Transactions at Shoals Technologies Group

In related news, CEO Brandon Moss acquired 22,300 shares of Shoals Technologies Group stock in a transaction dated Thursday, November 21st. The stock was purchased at an average cost 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 approximately $2,701,335. This trade represents a 3.90 % increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Insiders have sold 6,460 shares of company stock worth $30,271 in the last quarter. Company insiders own 0.36% of the company's stock.

Hedge Funds Weigh In On Shoals Technologies Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. Wellington Management Group LLP raised its stake 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 buying an additional 1,666,691 shares during the period. Point72 Asset Management L.P. lifted its holdings in 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 purchasing an additional 5,622,207 shares in the last quarter. Franklin Resources Inc. boosted its position in shares of Shoals Technologies Group by 16.1% in the third quarter. Franklin Resources Inc. now owns 4,748,673 shares of the company's stock worth $24,836,000 after purchasing an additional 658,617 shares during the period. Erste Asset Management GmbH purchased a new stake in shares of Shoals Technologies Group in the third quarter worth $20,191,000. Finally, Millennium Management LLC raised its position in shares of Shoals Technologies Group by 262.8% during the 2nd quarter. Millennium Management LLC now owns 3,371,593 shares of the company's stock valued at $21,039,000 after purchasing an additional 2,442,227 shares during the period.

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.