The stock of Shoals Technologies Group Inc (NASDAQ: SHLS) has decreased by -0.31 when compared to last closing price of 3.26.Despite this, the company has seen a gain of 14.64% in its stock price over the last five trading days. seekingalpha.com reported 2025-02-28 that Shoals Technologies Group, Inc. is a market leader in EBOS installations for solar energy, with a strong long-term outlook despite recent share price drops. The company reported $107m in Q4 2024 revenue, with a 10-12.8% projected growth rate for 2025, and maintains a strong balance sheet. Shoals is investing in innovative solutions and a new factory, aiming to improve efficiencies and maintain a dominant market share in the growing solar industry.
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 22.79x. The 36-month beta value for SHLS is also noteworthy at 1.56. There are mixed opinions on the stock, with 10 analysts rating it as a “buy,” 6 rating it as “overweight,” 9 rating it as “hold,” and 0 rating it as “sell.”
The public float for SHLS is 164.61M, and at present, short sellers hold a 10.02% of that float. The average trading volume of SHLS on March 18, 2025 was 6.61M shares.
SHLS’s Market Performance
SHLS’s stock has seen a 14.64% increase for the week, with a -19.55% drop in the past month and a -28.88% fall in the past quarter. The volatility ratio for the week is 7.34%, and the volatility levels for the past 30 days are at 9.26% for Shoals Technologies Group Inc The simple moving average for the past 20 days is -6.94% for SHLS’s stock, with a -39.60% simple moving average for the past 200 days.
Analysts’ Opinion of SHLS
Morgan Stanley, on the other hand, stated in their research note that they expect to see SHLS reach a price target of $7. The rating they have provided for SHLS stocks is “Overweight” according to the report published on December 17th, 2024.
BofA Securities gave a rating of “Buy” to SHLS, setting the target price at $6 in the report published on November 25th of the previous year.
SHLS Trading at -24.72% 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 -74.95% of loss for the given period.
Volatility was left at 9.26%, however, over the last 30 days, the volatility rate increased by 7.34%, as shares sank -17.93% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -41.23% lower at present.
During the last 5 trading sessions, SHLS rose by +14.64%, which changed the moving average for the period of 200-days by -59.12% in comparison to the 20-day moving average, which settled at $3.49. In addition, Shoals Technologies Group Inc saw -41.23% 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 Bardos Dominic, who purchase 35,000 shares at the price of $2.80 back on Mar 12 ’25. After this action, Bardos Dominic now owns 418,217 shares of Shoals Technologies Group Inc, valued at $98,000 using the latest closing price.
Lund Inez, the Chief Accounting Officer of Shoals Technologies Group Inc, sale 1,900 shares at $2.92 during a trade that took place back on Mar 10 ’25, which means that Lund Inez is holding 61,134 shares at $5,548 based on the most recent closing price.
Stock Fundamentals for SHLS
Current profitability levels for the company are sitting at:
- 0.13 for the present operating margin
- 0.35 for the gross margin
The net margin for Shoals Technologies Group Inc stands at 0.07. The total capital return value is set at 0.07. Equity return is now at value 4.38, with 2.91 for asset returns.
Based on Shoals Technologies Group Inc (SHLS), the company’s capital structure generated 0.2 points at debt to capital in total, while cash flow to debt ratio is standing at 0.57. The debt to equity ratio resting at 0.25. The interest coverage ratio of the stock is 3.7.
Currently, EBITDA for the company is 64.32 million with net debt to EBITDA at 1.84. When we switch over and look at the enterprise to sales, we see a ratio of 1.66. The receivables turnover for the company is 4.03for trailing twelve months and the total asset turnover is 0.5. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.33.
Conclusion
In summary, Shoals Technologies Group Inc (SHLS) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. 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.
