Royal Bank Of Canada Has Lowered Expectations for Shoals Technologies Group (NASDAQ:SHLS) Stock Price

Shoals Technologies Group (NASDAQ:SHLS) had its target price lowered by equities research analysts at Royal Bank Of Canada from $10.00 to $9.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Royal Bank Of Canada’s price objective suggests a potential upside of 27.93% from the company’s current price.

Other research analysts have also recently issued reports about the company. Weiss Ratings restated a “hold (c)” rating on shares of Shoals Technologies Group in a report on Friday, January 9th. Needham & Company LLC dropped their target price on Shoals Technologies Group from $14.00 to $12.00 and set a “buy” rating on the stock in a report on Wednesday. The Goldman Sachs Group reissued a “buy” rating on shares of Shoals Technologies Group in a research report on Monday, February 9th. TD Cowen reissued a “buy” rating on shares of Shoals Technologies Group in a report on Tuesday. Finally, BNP Paribas Exane upgraded shares of Shoals Technologies Group from an “underperform” rating to a “neutral” rating and set a $9.00 price target on the stock in a research note on Wednesday. Eleven equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $9.33.

Shoals Technologies Group Stock Performance

Shares of NASDAQ SHLS traded up $0.20 during trading on Wednesday, hitting $7.04. The company had a trading volume of 3,136,373 shares, compared to its average volume of 4,522,485. Shoals Technologies Group has a 12 month low of $2.71 and a 12 month high of $11.36. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.53 and a current ratio of 2.19. The stock has a 50 day simple moving average of $9.41 and a 200 day simple moving average of $8.52. The firm has a market capitalization of $1.18 billion, a P/E ratio of 35.18, a price-to-earnings-growth ratio of 0.84 and a beta of 1.70.

Shoals Technologies Group (NASDAQ:SHLS) last announced its quarterly earnings results on Tuesday, February 24th. The company reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.04). The firm had revenue of $148.33 million for the quarter, compared to the consensus estimate of $144.52 million. Shoals Technologies Group had a net margin of 7.66% and a return on equity of 8.50%. Shoals Technologies Group’s quarterly revenue was up 38.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.08 earnings per share. As a group, analysts anticipate that Shoals Technologies Group will post 0.29 earnings per share for the current year.

Insider Activity at Shoals Technologies Group

In other news, CFO Dominic Bardos sold 4,170 shares of the company’s stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $7.83, for a total transaction of $32,651.10. Following the completion of the sale, the chief financial officer owned 412,289 shares in the company, valued at $3,228,222.87. This represents a 1.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.52% of the stock is owned by company insiders.

Hedge Funds Weigh In On Shoals Technologies Group

Several institutional investors have recently bought and sold shares of the company. Nisa Investment Advisors LLC lifted its stake in shares of Shoals Technologies Group by 449.1% in the 2nd quarter. Nisa Investment Advisors LLC now owns 7,226 shares of the company’s stock worth $31,000 after acquiring an additional 5,910 shares during the period. GAMMA Investing LLC lifted its position in Shoals Technologies Group by 57.7% in the fourth quarter. GAMMA Investing LLC now owns 3,756 shares of the company’s stock valued at $32,000 after purchasing an additional 1,375 shares during the period. USA Financial Formulas purchased a new stake in Shoals Technologies Group in the 4th quarter valued at approximately $49,000. Savant Capital LLC purchased a new position in shares of Shoals Technologies Group during the 2nd quarter worth approximately $50,000. Finally, Ethic Inc. acquired a new stake in shares of Shoals Technologies Group in the 2nd quarter valued at approximately $54,000.

Key Shoals Technologies Group News

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

• Positive Sentiment: Record Q4 revenue, record backlog and firm 2026 guidance — Shoals reported Q4 revenue of $148.3M (+39% y/y), a backlog/awarded orders of $747.6M, and full‑year 2026 revenue guidance of $560–$600M with adjusted EBITDA guidance of $110–$130M, supporting multi‑year growth visibility. CORRECTED PRESS RELEASE: Shoals Technologies Group, Inc. Reports Financial Results for Fourth Quarter 2025
• Positive Sentiment: Analyst upgrade — BNP Paribas Exane raised its rating from “underperform” to “neutral” and set a $9 PT, narrowing negative analyst pressure and signaling some confidence in the company’s outlook. (No article link provided.)
• Positive Sentiment: Commercial win / product diversification — Shoals and ON.energy will deploy critical‑power systems for a leading AI data‑center operator, showing traction outside core utility solar (BESS/data center exposure). Shoals Technologies Group and ON.energy to Deploy Critical-Power Systems for Leading AI Data-Center Operator
• Neutral Sentiment: Price target adjustment — Needham lowered its PT from $14 to $12 but kept a “buy” rating; that reduces some upside expectations while still implying substantial appreciation vs. the current price. Benzinga
• Negative Sentiment: EPS miss and market reaction — Shoals reported adjusted diluted EPS of $0.10 vs. consensus ~$0.14; the earnings shortfall has triggered selling pressure despite the revenue beat. Shoals Technologies Group (SHLS) Lags Q4 Earnings Estimates
• Negative Sentiment: Q1/near‑term profitability concerns — Analysts and coverage noted that Q1 adjusted EBITDA guidance and commentary signal a potential near‑term slowdown and margin pressure; that mismatch to expectations drove further downside. Shoals Technologies declines as Q1 outlook signals sharp slowdown
• Negative Sentiment: Margin and cost headwinds — Management flagged a 600 bps decline in gross margin (to ~31.6%) driven by higher material costs, duties/tariffs and elevated legal/professional expenses (litigation related), which could compress near‑term profitability even as top line grows. Shoals Technologies: Tariff Impacts Are Real And May Continue (Earnings Review)

Shoals Technologies Group Company Profile

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.