Shoals Technologies Group (NASDAQ:SHLS) Upgraded to Neutral at BNP Paribas Exane

Shoals Technologies Group (NASDAQ:SHLS) was upgraded by equities research analysts at BNP Paribas Exane from an “underperform” rating to a “neutral” rating in a report issued on Wednesday. The firm currently has a $9.00 price target on the stock. BNP Paribas Exane’s target price indicates a potential upside of 31.58% from the company’s current price.

Several other research analysts have also recently commented on the stock. Guggenheim raised their target price on shares of Shoals Technologies Group from $8.00 to $12.00 and gave the stock a “buy” rating in a report on Tuesday, November 11th. Wells Fargo & Company raised their price objective on Shoals Technologies Group from $6.00 to $10.00 and gave the stock an “equal weight” rating in a research note on Thursday, November 6th. TD Cowen reaffirmed a “buy” rating on shares of Shoals Technologies Group in a report on Tuesday. Zacks Research lowered Shoals Technologies Group from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 19th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Shoals Technologies Group in a research note on Friday, January 9th. Eleven investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $9.73.

Shoals Technologies Group Stock Down 30.9%

SHLS stock opened at $6.84 on Wednesday. Shoals Technologies Group has a fifty-two week low of $2.71 and a fifty-two week high of $11.36. 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 stock has a market capitalization of $1.14 billion, a price-to-earnings ratio of 34.20, a PEG ratio of 0.84 and a beta of 1.70. The business’s fifty day moving average price is $9.41 and its two-hundred day moving average price is $8.52.

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

Insider Buying and Selling

In other news, CFO Dominic Bardos sold 4,170 shares of the stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $7.83, for a total value of $32,651.10. Following the completion of the transaction, the chief financial officer owned 412,289 shares of the company’s stock, valued at approximately $3,228,222.87. This represents a 1.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.52% of the company’s stock.

Institutional Trading of Shoals Technologies Group

A number of hedge funds have recently added to or reduced their stakes in SHLS. Encompass Capital Advisors LLC bought a new stake in shares of Shoals Technologies Group during the second quarter worth $56,120,000. Price T Rowe Associates Inc. MD boosted its holdings in shares of Shoals Technologies Group by 151.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 12,753,784 shares of the company’s stock valued at $108,410,000 after acquiring an additional 7,685,515 shares in the last quarter. First Trust Advisors LP grew its position in Shoals Technologies Group by 1,493.0% during the 4th quarter. First Trust Advisors LP now owns 6,331,682 shares of the company’s stock worth $53,819,000 after acquiring an additional 5,934,223 shares during the last quarter. Castle Hook Partners LP acquired a new position in Shoals Technologies Group in the 4th quarter worth about $40,095,000. Finally, Amundi increased its holdings in Shoals Technologies Group by 175.2% in the 4th quarter. Amundi now owns 5,776,766 shares of the company’s stock worth $49,075,000 after purchasing an additional 3,677,713 shares in the last quarter.

Key Shoals Technologies Group News

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

• Positive Sentiment: Record revenue and backlog: Q4 revenue was $148.3M (+39% YoY) and backlog & awarded orders totaled $747.6M, supporting multi-quarter revenue visibility. Shoals Q4 Results (GlobeNewswire)
• Positive Sentiment: 2026 growth outlook: Management guided FY2026 revenue $560M–$600M and adjusted EBITDA $110M–$130M, and Q1 revenue $125M–$135M (above consensus), giving investors a clear growth target for the year. Shoals targets $560M–$600M 2026 revenue (MSN)
• Positive Sentiment: New commercial win / product expansion: Shoals and ON.energy will deploy critical‑power systems for a major AI data‑center operator — expands TAM exposure beyond utility solar into data-center/BESS use cases. Shoals & ON.energy deployment (Yahoo)
• Neutral Sentiment: Company corrected a mistaken earlier press release line that implied changes to order patterns and suspension of guidance — the correction restores reporting continuity but highlights execution/communications risk. Corrected press release (GlobeNewswire)
• Neutral Sentiment: Adjusted EBITDA and adjusted metrics improved year-over-year (Q4 adjusted EBITDA $30.3M; FY2025 adjusted EBITDA ~$99.5M), but non‑GAAP adjustments matter for comparability. Quiver summary
• Negative Sentiment: Earnings miss on EPS: Reported EPS $0.10 vs. consensus ~$0.14, which, despite strong revenue, disappointed expectations and pressured shares. Earnings miss (Zacks)
• Negative Sentiment: Margin compression and rising costs: Gross margin fell to 31.6% (from 37.6%) due to higher material costs, duties/tariffs and litigation-related expenses; G&A rose materially for legal/professional fees. Tariff and margin analysis (Seeking Alpha)
• Negative Sentiment: Q1 EBITDA outlook and slowdown concerns: Several outlets flagged Q1 adjusted EBITDA guidance below expectations, which has raised near‑term growth/profitability concerns and weighed on investor sentiment. Q1 outlook concerns (Seeking Alpha)

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.