The stock of Shoals Technologies Group Inc (NASDAQ: SHLS) has decreased by -2.66 when compared to last closing price of 5.64. Despite this, the company has experienced a 7.23% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-11-20 that Despite a 65% stock price drop, I believe Shoals is poised for recovery by 2025–2026 due to easing project delays and expected interest rate declines, making it a Buy amid current pessimism. Shoals’ strong management—with new COO Kirsten Moen and CEO Brandon Moss’s “Shoals 2.0” strategy—focuses on efficiency and innovation, maintaining industry-leading margins and a growing backlog despite macroeconomic challenges. Valuation suggests a 52% margin of safety with a November 2027 enterprise value estimate of $2.475B; however, risks include prolonged high-interest rates that may delay growth.
Is It Worth Investing in Shoals Technologies Group Inc (NASDAQ: SHLS) Right Now?
The price-to-earnings ratio for Shoals Technologies Group Inc (NASDAQ: SHLS) is above average at 28.42x, Company’s 36-month beta value is 1.66.Analysts have differing opinions on the stock, with 10 analysts rating it as a “buy,” 5 as “overweight,” 9 as “hold,” and 0 as “sell.”
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The public float for SHLS is 165.11M, and currently, short sellers hold a 10.50% ratio of that floaft. The average trading volume of SHLS on December 30, 2024 was 4.84M shares.
SHLS’s Market Performance
The stock of Shoals Technologies Group Inc (SHLS) has seen a 7.23% increase in the past week, with a 4.37% rise in the past month, and a -2.14% fall in the past quarter. The volatility ratio for the week is 7.42%, and the volatility levels for the past 30 days are at 6.89% for SHLS. The simple moving average for the last 20 days is 12.41% for SHLS stock, with a simple moving average of -17.01% for the last 200 days.
Analysts’ Opinion of SHLS
Many brokerage firms have already submitted their reports for SHLS stocks, with Morgan Stanley repeating the rating for SHLS by listing it as a “Overweight.” The predicted price for SHLS in the upcoming period, according to Morgan Stanley is $7 based on the research report published on December 17, 2024 of the current year 2024.
BofA Securities, on the other hand, stated in their research note that they expect to see SHLS reach a price target of $6. The rating they have provided for SHLS stocks is “Buy” according to the report published on November 25th, 2024.
TD Cowen gave a rating of “Buy” to SHLS, setting the target price at $11 in the report published on November 13th of the current year.
SHLS Trading at 8.83% from the 50-Day Moving Average
After a stumble in the market that brought SHLS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -68.62% of loss for the given period.
Volatility was left at 6.89%, however, over the last 30 days, the volatility rate increased by 7.42%, as shares surge +4.31% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +10.22% upper at present.
During the last 5 trading sessions, SHLS rose by +6.35%, which changed the moving average for the period of 200-days by -53.93% in comparison to the 20-day moving average, which settled at $4.88. In addition, Shoals Technologies Group Inc saw -64.67% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SHLS starting from Lund Inez, who sale 850 shares at the price of $4.72 back on Dec 05 ’24. After this action, Lund Inez now owns 36,825 shares of Shoals Technologies Group Inc, valued at $4,012 using the latest closing price.
TOLNAR JEFFERY, the President of Shoals Technologies Group Inc, sale 1,310 shares at $4.65 during a trade that took place back on Dec 05 ’24, which means that TOLNAR JEFFERY is holding 124,451 shares at $6,092 based on the most recent closing price.
Stock Fundamentals for SHLS
Current profitability levels for the company are sitting at:
- 0.16 for the present operating margin
- 0.36 for the gross margin
The net margin for Shoals Technologies Group Inc stands at 0.09. The total capital return value is set at 0.09. Equity return is now at value 6.15, with 4.01 for asset returns.
Based on Shoals Technologies Group Inc (SHLS), the company’s capital structure generated 0.21 points at debt to capital in total, while cash flow to debt ratio is standing at 0.66. The debt to equity ratio resting at 0.26. The interest coverage ratio of the stock is 4.11.
Currently, EBITDA for the company is 89.56 million with net debt to EBITDA at 1.66. When we switch over and look at the enterprise to sales, we see a ratio of 2.48. The receivables turnover for the company is 3.87for trailing twelve months and the total asset turnover is 0.53. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.08.
Conclusion
In a nutshell, Shoals Technologies Group Inc (SHLS) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
