Shoals Technologies Group Inc. (NASDAQ:SHLS) finished Thursday with an addition of $0.04 to close at $21.88, an upside of 0.18 percent. An average of 2,712,320 shares of common stock have been traded in the last five days. There was a fall of -$2.12 in the past week, and it reached a new high 9 times over the past 12 months. The last 20 days have seen an average of 2,499,525 shares traded, while the 50-day average volume stands at 2,262,238.
SHLS stock has decreased by -10.69% in the last month. The company shares reached their 1-month lowest point of $21.42 on 08/10/23. With the stock rallying to its 52-week high on 01/24/23, shares of the company touched a low of $17.32 and a high of $32.43 in 52 weeks. It has reached a new high 7 times so far this year and lost -11.31% or -$2.79 in price. In spite of this, the price is down -32.53% from the 52-week high.
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Insider Transactions
SHLS stock investors should be aware that Shoals Technologies Group Inc. (SHLS) stock had its last reported insider trading activity 56 days ago on Jun 16. In this transaction, the insider spent $180,374. President, TOLNAR JEFFERY, disposed of 1,415 shares at a price of $22.79 on Apr 03. The insider now owns more than $32,248 worth of shares. Prior to that, President TOLNAR JEFFERY went on to Sale 3,575 shares at $19.73 each on Mar 15. An amount of $70,535 was transacted.
Valuation Metrics
Shoals Technologies Group Inc. (SHLS) has a trailing price-to-earnings (P/E) ratio of 35.40. The stock’s beta is 2.08. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 9.50, the price-to-book (PB) ratio at 7.01, and the price-to-cash flow ratio at 49.54.
Financial Health
The quick ratio of Shoals Technologies Group Inc. for the three months ended June 29 was 1.70, and the current ratio was 2.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.39 and a total debt to equity ratio of 0.40 for the quarter ending June 29. Shoals Technologies Group Inc.’s EBITDA margin for the year ending June 29 is 23.52%, while its operating margin for the same period stands at 24.70%. Its gross profit as reported stood at $131.31 million compared to revenue of $326.94 million.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Shoals Technologies Group Inc.’s return on assets was 22.40%.
Earnings Surprise
For the three-month period that ended June 29, Shoals Technologies Group Inc. had $20.0 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $18.92 million in the quarter, while revenues of $14.3 million were grew 76.74%. The analyst consensus anticipated Shoals Technologies Group Inc.’s latest quarter earnings to come in at $0.13 per share, but it turned out to be $0.14, a 7.70% surprise. For the quarter, EBITDA amounted to $34.56 million. Shareholders own equity worth $169.94 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Shoals Technologies Group Inc. (SHLS) price momentum. RSI 9-day as of the close on 10 August was 22.82%, suggesting the stock is oversold, with historical volatility in this time frame at 31.46%.
As of today, SHLS’s price is $22.18 -8.83% or -$2.12 from its 5-day moving average. SHLS is currently trading -15.68% lower than its 20-day SMA and +8.80% higher than its 100-day SMA. However, the stock’s current price level is -8.07% below the SMA50 and +6.73% above the SMA200.
The stochastic %K and %D were 6.79% and 7.07%, respectively, and the average true range (ATR) was 1.22. With the 14-day stochastic at 7.14% and the average true range at 1.25, the RSI (14) stands at 31.94%. The stock has reached -1.53 on the 9-day MACD Oscillator while the 14-day reading was at -2.65.
Analyst Ratings
Northland Capital upgraded Shoals Technologies Group Inc. (NASDAQ: SHLS) to a an Outperform rating in its most recent analyst report. Previously, the stock was rated as a Market perform. The consensus rating for Shoals Technologies Group Inc. (SHLS) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell SHLS, while 4 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 10 others rate it as a “buy”.
What is SHLS’s price target for the next 12 months?
Analysts predict a range of price targets between $20.00 and $42.00, with a median target of $31.00. Taking a look at these predictions, the average price target given by analysts for Shoals Technologies Group Inc. (SHLS) stock is $32.00.
