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

Shoals Technologies Group, Inc. (NASDAQ:SHLS) traded down 9.3% during mid-day trading on Thursday after UBS Group lowered their price target on the stock from $12.00 to $11.00. UBS Group currently has a buy rating on the stock. Shoals Technologies Group traded as low as $6.09 and last traded at $6.2150. 1,263,122 shares traded hands during mid-day trading, a decline of 73% from the average session volume of 4,727,696 shares. The stock had previously closed at $6.85.

Several other brokerages have also issued reports on SHLS. Barclays lowered their price target on Shoals Technologies Group from $10.00 to $9.00 and set an “overweight” rating on the stock in a research note on Wednesday. Weiss Ratings restated a “hold (c)” rating on shares of Shoals Technologies Group in a research report on Friday, January 9th. Roth Mkm decreased their price target on shares of Shoals Technologies Group from $15.00 to $10.00 and set a “buy” rating on the stock in a research note on Tuesday. Guggenheim lowered their price target on shares of Shoals Technologies Group from $12.00 to $11.00 and set a “buy” rating on the stock in a report on Wednesday. Finally, The Goldman Sachs Group restated a “buy” rating on shares of Shoals Technologies Group in a research note on Monday, February 9th. Ten analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $9.50.

Insider Activity

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

Trending Headlines about Shoals Technologies Group

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

• Positive Sentiment: Record revenue, backlog and 2026 outlook: Shoals reported record Q4 revenue ($148.3M), a record backlog/awarded orders of $747.6M and provided 2026 revenue guidance of $560M–$600M with adjusted EBITDA guidance of $110M–$130M — signals strong demand and forward visibility. CORRECTED PRESS RELEASE: Shoals Technologies Group, Inc. Reports Financial Results for Fourth Quarter 2025
• Positive Sentiment: New data-center / AI opportunity: Shoals and ON.energy won work to deploy critical‑power systems for a leading AI data‑center operator — diversifies revenue beyond utility solar and supports higher‑margin product mix over time. Shoals Technologies Group and ON.energy to deploy critical power systems for leading AI data center operator
• Positive Sentiment: Reduced short interest: Short interest fell ~14.5% in February (now ~6.6% of float, ~2.7 days to cover), which may reduce immediate downside pressure from short covering dynamics. (Data aggregate reported 2/25)
• Neutral Sentiment: Clarification on guidance communications: Management issued a correction saying an earlier statement about suspending guidance was made in error and that quarterly guidance will continue — reduces some misinformation risk but doesn’t change fundamentals. CORRECTED PRESS RELEASE
• Negative Sentiment: Earnings miss and margin pressure: Q4 adjusted EPS of $0.10 missed consensus (~$0.14) and gross margin fell to ~31.6% due to higher material costs, tariffs and litigation-related expense — investors reacted negatively to the EPS miss and margin compression. SHLS Lags Q4 Earnings Estimates (Zacks)
• Negative Sentiment: Q1 / EBITDA concern and near‑term share weakness: Analysts and commentators flagged that Q1 adjusted EBITDA and near‑term profitability expectations disappointed, which triggered downside trading and a post‑earnings gap down. Shoals Technologies declines as Q1 outlook signals sharp slowdown (Seeking Alpha)
• Negative Sentiment: Analyst price‑target cuts: Several firms lowered targets in the last 24–48 hours (examples: Morgan Stanley to $8.50, Barclays to $9.00, UBS trimmed its target) — these cuts cap near‑term upside and signal lower Street expectations despite many firms keeping Buy/Overweight ratings. Shoals Technologies Group (NASDAQ:SHLS) Given New $8.50 Price Target at Morgan Stanley Shoals Technologies Group (NASDAQ:SHLS) Given New $9.00 Price Target at Barclays UBS target cut (TickerReport)

Hedge Funds Weigh In On Shoals Technologies Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada increased its holdings in shares of Shoals Technologies Group by 292.5% during the first quarter. Royal Bank of Canada now owns 106,531 shares of the company’s stock worth $353,000 after buying an additional 79,392 shares in the last quarter. AQR Capital Management LLC grew its position in Shoals Technologies Group by 184.7% during the 1st quarter. AQR Capital Management LLC now owns 922,358 shares of the company’s stock worth $2,975,000 after acquiring an additional 598,407 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Shoals Technologies Group during the 1st quarter worth approximately $57,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Shoals Technologies Group by 8.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 517,507 shares of the company’s stock valued at $1,718,000 after purchasing an additional 38,983 shares in the last quarter. Finally, CWM LLC raised its position in Shoals Technologies Group by 73.0% in the 2nd quarter. CWM LLC now owns 39,206 shares of the company’s stock valued at $167,000 after purchasing an additional 16,545 shares during the last quarter.

Shoals Technologies Group Trading Down 7.3%

The company has a debt-to-equity ratio of 0.21, a current ratio of 2.19 and a quick ratio of 1.53. The company has a market cap of $1.06 billion, a price-to-earnings ratio of 31.83, a price-to-earnings-growth ratio of 0.58 and a beta of 1.70. The business has a 50 day simple moving average of $9.38 and a 200 day simple moving average of $8.51.

Shoals Technologies Group (NASDAQ:SHLS) last announced its earnings results on Tuesday, February 24th. The company reported $0.10 earnings per share for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.04). The business had revenue of $148.33 million during the quarter, compared to analyst estimates of $144.52 million. Shoals Technologies Group had a net margin of 7.06% and a return on equity of 9.20%. The business’s quarterly revenue was up 38.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.08 earnings per share. As a group, equities analysts forecast that Shoals Technologies Group, Inc. will post 0.29 EPS 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.