The stock of Shoals Technologies Group Inc. (NASDAQ:SHLS) decreased by -$0.94 on Tuesday to finish at $20.68, down -4.35 percent. The last five days have seen an average of 1,918,900 shares of common stock traded. 7 times new highs were reached in the current year, with a fall of -$3.99. The average number of shares traded over the last 20 days was 2,435,455, while the average volume over the last 50 days totaled 2,281,472.
SHLS stock dropped -22.58% since last month. On 08/15/23, the company’s shares reached a one-month low of $20.52. The stock touched a high of $32.43 on 01/24/23, after rallying from a low of $17.32 in 52 weeks. The price of SHLS stock has declined by -16.17% or -$3.99 this year, reaching a new high 7 times. Still, the stock price is down -36.23% 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 61 days ago on Jun 16. On Jun 16, General Counsel Peetz Mehgan sold 7,279 shares at $24.78 each. This transaction resulted in the insider making $180,374. On Apr 03, TOLNAR JEFFERY sold 1,415 shares at a price of US$22.79. After the transaction, the insider now owns 64,629 shares. President TOLNAR JEFFERY had earlier sold 3,575 shares on Mar 15 for $19.73 a share. The transaction was completed for $70,535.
Valuation Metrics
Shoals Technologies Group Inc. (SHLS) has a trailing price-to-earnings (P/E) ratio of 33.46. Beta for the stock is 2.08. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 8.67, the price-to-book (PB) ratio of 6.63, and the price-to-cash flow ratio of 45.19.
Financial Health
For the three months ended June 29, Shoals Technologies Group Inc.’s quick ratio was 1.70, while its current ratio was 2.60, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.39, and the total debt to equity ratio is 0.40. As far as profitability goes, gross margin for the trailing twelve months is 42.80% percent. Shoals Technologies Group Inc.’s EBITDA margin for the year ended June 29 was 23.52%, whereas its operating margin stood at 24.70% for the same period. Based on annual data, it had gross profit of $131.31 million and revenue of $326.94 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. SHLS’s return on assets (ROA) during the last 12 months has been 22.40%. There was a 10.80% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 45.50%.
Earnings Surprise
According to Shoals Technologies Group Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $119.21 million, while revenues rose by 38.35% to $105.09 million. It was predicted that Shoals Technologies Group Inc.’s quarterly earnings would be $0.14, but it ended up being $0.13, beating the consensus by 7.70%. EBITDA was $34.56 million for the quarter. At the end of Shoals Technologies Group Inc.’s most recent quarter ended June 29, its liabilities totaled 289.42 million, while its total debt was $214.23 million. Equity owned by shareholders amounts to $169.94 million.
Technical Picture
Here’s a quick look at Shoals Technologies Group Inc.’s (SHLS) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 16.75%, suggesting the stock is oversold, with a 24.78% historical volatility rate.
The stochastic %K and %D were 4.66% and 5.29% respectively, while the average true range (ATR) was 1.10. Based on the 14-day stochastic reading of 2.18%, the RSI (14) reading is 26.76%. On the 9-day MACD Oscillator, the stock is at -0.78, and the 14-day reading is at -2.12.
Analyst Ratings
In its most recent analyst report, Northland Capital raised its rating on Shoals Technologies Group Inc. (NASDAQ: SHLS) to an Outperform. Prior to this, analysts firm rated the stock as a Market perform. Analysts have assigned Shoals Technologies Group Inc. (SHLS) an Overweight rating. SHLS is a stock that is recommended for selling by 1 brokerage firm, while 4 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 0 rates it overweight and 10 others recommend it as a buy.
What is SHLS’s price target for the next 12 months?
The current consensus forecast for the stock is between $20.00 and $42.00, with a median target price of $31.00. In analyzing these forecasts, the average price target given by analysts for Shoals Technologies Group Inc. (SHLS) is $32.00.
