Shoals Technologies Group Inc. [NASDAQ: SHLS] loss -1.74% or -0.48 points to close at $27.11 with a heavy trading volume of 3806749 shares. The company report on July 15, 2021 that Shoals Technologies Group, Inc. Announces Pricing of an Offering of 13,384,155 Shares of Class A Common Stock.
Shoals Technologies Group, Inc. (Nasdaq: SHLS) announced the pricing of an underwritten public offering of an aggregate of 13,384,155 shares of the Company’s Class A common stock, at a price to the public of $28.00 per share. The Company is offering 8,394,463 shares of its Class A common stock, the net proceeds of which will be used to purchase equity interests in its operating subsidiary from certain holders including its founder Dean Solon, Director Brad Forth, Chief Executive Officer Jason Whitaker and Chief Financial Officer Philip Garton (collectively, the “Existing Stockholders”). Additionally, certain selling stockholders, including an entity controlled by Oaktree Capital Management, L.P. (“Oaktree”) and Mehgan Peetz, the Company’s General Counsel (the “Selling Stockholders”), are offering 4,989,692 shares of the Company’s Class A common stock. The Company will not receive any of the proceeds from the sale of shares offered by the Selling Stockholders. The Company also granted the underwriters a 30-day option to purchase up to an additional 2,007,623 shares of Class A common stock. The Company’s Class A common stock is listed on the Nasdaq Global Market under the symbol “SHLS.” The offering is expected to close on July 19, 2021, subject to customary closing conditions.
Goldman Sachs & Co. LLC, J.P. Morgan, Guggenheim Securities and UBS Investment Bank are acting as joint book-running managers and Goldman Sachs & Co. LLC, J.P. Morgan and Guggenheim Securities are acting as representatives of the underwriters for the offering. Morgan Stanley, Credit Suisse and Barclays are also acting as book-runners. Cowen, Oppenheimer & Co. Inc., Piper Sandler, Johnson Rice & Company L.L.C. and Roth Capital Partners are acting as co-managers.
If we look at the average trading volume of 1.66M shares, SHLS reached to a volume of 3806749 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Shoals Technologies Group Inc. [SHLS]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SHLS shares is $40.09 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SHLS stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Credit Suisse have made an estimate for Shoals Technologies Group Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on July 16, 2021. While these analysts kept the previous recommendation, Piper Sandler raised their target price to Overweight. The new note on the price target was released on June 30, 2021, representing the official price target for Shoals Technologies Group Inc. stock. Previously, the target price had yet another raise to $40, while Credit Suisse analysts kept a Outperform rating on SHLS stock. On May 20, 2021, analysts decreased their price target for SHLS shares from 36 to 33.
The Average True Range (ATR) for Shoals Technologies Group Inc. is set at 1.95, with the Price to Sales ratio for SHLS stock in the period of the last 12 months amounting to 25.48.
Trading performance analysis for SHLS stock
Shoals Technologies Group Inc. [SHLS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -23.37.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SHLS stock in for the last two-week period is set at 34.30, with the RSI for the last a single of trading hit 25.14, and the three-weeks RSI is set at 39.68 for Shoals Technologies Group Inc. [SHLS]. The present Moving Average for the last 50 days of trading for this stock 29.27, while it was recorded at 29.72 for the last single week of trading.
Shoals Technologies Group Inc. [SHLS]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Shoals Technologies Group Inc. [SHLS] shares currently have an operating margin of +21.24 and a Gross Margin at +33.21. Shoals Technologies Group Inc.’s Net Margin is presently recorded at +19.24.
Additionally, SHLS Total Debt to Total Capital is recorded at 205.39, with Total Debt to Total Assets ending up at 183.72.
Shoals Technologies Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.00 and a Current Ratio set at 2.80.
Shoals Technologies Group Inc. [SHLS]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SHLS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Shoals Technologies Group Inc. go to 34.96%.
An analysis of insider ownership at Shoals Technologies Group Inc. [SHLS]
There are presently around $2,384 million, or 91.40% of SHLS stock, in the hands of institutional investors. The top three institutional holders of SHLS stocks are: BLACKROCK INC. with ownership of 11,797,516, which is approximately New of the company’s market cap and around 0.50% of the total institutional ownership; PRICE T ROWE ASSOCIATES INC /MD/, holding 10,473,845 shares of the stock with an approximate value of $283.95 million in SHLS stocks shares; and FMR LLC, currently with $272.59 million in SHLS stock with ownership of nearly New of the company’s market capitalization.
Positions in Shoals Technologies Group Inc. stocks held by institutional investors increased at the end of September and at the time of the September reporting period, where 141 institutional holders increased their position in Shoals Technologies Group Inc. [NASDAQ:SHLS] by around 87,931,178 shares. Additionally, 1 investors decreased positions by around 5 shares, while 3 investors held positions by with 8,589 shares. The mentioned changes placed institutional holdings at 87,939,772 shares, according to the latest SEC report filing. SHLS stock had 139 new institutional investments in for a total of 87,928,327 shares, while 0 institutional investors sold positions of 0 shares during the same period.