Shoals Technologies Group (NASDAQ:SHLS) Trading Down 9.3% After Analyst Downgrade

Shoals Technologies Group, Inc. (NASDAQ:SHLS)’s stock price was down 9.3% during trading on Thursday after Citigroup lowered their price target on the stock from $11.00 to $8.50. Citigroup currently has a neutral rating on the stock. Shoals Technologies Group traded as low as $6.09 and last traded at $6.2150. Approximately 1,263,122 shares traded hands during trading, a decline of 73% from the average daily volume of 4,727,696 shares. The stock had previously closed at $6.85.

Several other equities research analysts have also weighed in on the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Shoals Technologies Group in a research note on Friday, January 9th. BNP Paribas Exane upgraded Shoals Technologies Group from an “underperform” rating to a “neutral” rating and set a $9.00 price target on the stock in a research report on Wednesday. Royal Bank Of Canada cut their price objective on Shoals Technologies Group from $10.00 to $9.00 and set an “outperform” rating for the company in a report on Wednesday. Wells Fargo & Company reduced their target price on shares of Shoals Technologies Group from $10.00 to $9.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Finally, Needham & Company LLC dropped their target price on shares of Shoals Technologies Group from $14.00 to $12.00 and set a “buy” rating for the company in a research report on Wednesday. Ten analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, Shoals Technologies Group has an average rating of “Moderate Buy” and a consensus price target of $9.71.

Insider Transactions at Shoals Technologies Group

In other news, CFO Dominic Bardos sold 4,170 shares of Shoals Technologies Group stock in a transaction on Friday, December 5th. The stock was sold at an average price of $7.83, for a total value of $32,651.10. Following the completion of the sale, the chief financial officer directly owned 412,289 shares of the company’s stock, valued at approximately $3,228,222.87. This trade represents a 1.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.67% of the company’s stock.

Key Headlines Impacting Shoals Technologies Group

Here are the key news stories impacting Shoals Technologies Group this week:

• Positive Sentiment: Shoals and ON.energy won a deployment to supply critical power systems to a leading AI data‑center operator — a strategic large‑customer win that highlights demand outside core solar end markets. Shoals Technologies Group and ON.energy to deploy critical power systems for leading AI data center operator
• Positive Sentiment: Shoals is targeting $560M–$600M in 2026 revenue and cites a record backlog plus new product launches — this implies multi‑year growth potential if backlog converts. Shoals targets $560M–$600M 2026 revenue amid record backlog and new product launches
• Positive Sentiment: Q4 revenue was a record ~$148M (FY growth ~19%) — top‑line momentum that supports longer‑term growth assumptions even as near‑term margins/earnings vary. Shoals reports record $148 million Q4 revenue, full-year growth of 19%
• Positive Sentiment: Short interest fell ~14.5% in February to ~10.9M shares (6.6% of float), reducing one potential source of downward pressure and shortening the short‑covering risk window. (no direct article link)
• Neutral Sentiment: Multiple brokerages updated targets/ratings: Citi cut its PT to $8.50 (neutral), Morgan Stanley to $8.50 (equal weight), Barclays to $9.00 (overweight), UBS/Guggenheim/Needham trimmed PTs but largely kept buy/overweight stances — a cluster of mostly downward target adjustments that narrows upside but leaves several mid‑single‑digit to double‑digit upside scenarios. Benzinga coverage of analyst price target moves
• Negative Sentiment: Shoals missed EPS estimates (Q reported EPS below consensus) and issued a Q1 outlook that the market read as a sharp near‑term slowdown, which prompted a gap down in the stock today. That weak short‑term guidance is the main driver of the intra‑day weakness. Shoals Technologies declines as Q1 outlook signals sharp slowdown

Institutional Investors Weigh In On Shoals Technologies Group

Institutional investors have recently modified their holdings of the business. GAMMA Investing LLC raised its stake in shares of Shoals Technologies Group by 57.7% during the fourth quarter. GAMMA Investing LLC now owns 3,756 shares of the company’s stock worth $32,000 after buying an additional 1,375 shares during the last quarter. USA Financial Formulas bought a new position in Shoals Technologies Group in the fourth quarter valued at approximately $49,000. Nisa Investment Advisors LLC raised its position in shares of Shoals Technologies Group by 449.1% during the 2nd quarter. Nisa Investment Advisors LLC now owns 7,226 shares of the company’s stock valued at $31,000 after acquiring an additional 5,910 shares during the last quarter. State of Alaska Department of Revenue acquired a new position in shares of Shoals Technologies Group in the 3rd quarter valued at $54,000. Finally, CIBC Asset Management Inc acquired a new position in shares of Shoals Technologies Group in the 4th quarter valued at $85,000.

Shoals Technologies Group Price Performance

The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.53 and a current ratio of 2.03. The company has a 50-day moving average price of $9.33 and a 200-day moving average price of $8.49. The firm has a market capitalization of $1.06 billion, a P/E ratio of 31.75, a price-to-earnings-growth ratio of 0.58 and a beta of 1.70.

Shoals Technologies Group (NASDAQ:SHLS) last released its quarterly earnings data on Tuesday, February 24th. The company reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.04). Shoals Technologies Group had a net margin of 7.06% and a return on equity of 9.10%. The company had revenue of $148.33 million during the quarter, compared to the consensus estimate of $144.52 million. During the same quarter in the prior year, the company posted $0.08 EPS. The company’s revenue for the quarter was up 38.6% compared to the same quarter last year. On average, sell-side analysts predict that Shoals Technologies Group, Inc. will post 0.29 earnings per share for the current year.

About Shoals Technologies Group

Shoals Technologies Group, Inc is a leading provider of electrical balance-of-system (BOS) solutions for the solar energy industry. The company designs, engineers and manufactures a comprehensive portfolio of products, including junction boxes, combiner boxes, cable assemblies, power distribution units and monitoring systems. These components are critical to interconnecting photovoltaic modules, optimizing energy output and ensuring safe, reliable performance across solar installations.

Founded in 1996 and headquartered in Portland, Tennessee, Shoals has grown its manufacturing and operations footprint to serve customers around the globe.