Shoals Technologies Group Inc. (NASDAQ: SHLS) stock jumped 6.83% on Monday to $29.23 against a previous-day closing price of $27.36. With 2.89 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.77 million shares. During the session, the Solar company that operates in wider Technology sector, reached to the highest price of $29.65 whereas the lowest price it dropped to was $27.46. The 52-week range on SHLS shows that it touched its highest point at $32.43 and its lowest point at $9.58 during that stretch. It currently has a 1-year price target of $31.92.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SHLS was up-trending over the past week, with a rise of 3.21%, but this was up by 15.99% over a month. Three-month performance surged to 45.50% while six-month performance rose 64.58%. The stock gained 72.35% in the past year, while it has gained 18.48% so far this year. A look at the trailing 12-month EPS for SHLS yields 0.14 with Next year EPS estimates of 0.65. For the next quarter, that number is 0.08. This implies an EPS growth rate of -88.80% for this year and 107.69% for next year.
Float and Shares Shorts:
At present, 112.97 million SHLS shares are outstanding with a float of 112.10 million shares on hand for trading. On Oct 13, 2022, short shares totaled 9.14 million, which was 8.12% higher than short shares on Sep 14, 2022. In addition to Mr. Jason R. Whitaker as the firm’s CEO, Pres & Director, Ms. Mehgan Peetz serves as its Gen. Counsel, Chief Legal Officer & Corp. Sec.
Through their ownership of 110.52% of SHLS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 70.47% of SHLS, in contrast to 36.10% held by mutual funds. Shares owned by individuals account for 30.25%. As the largest shareholder in SHLS with 8.51% of the stake, T. Rowe Price Investment Manageme holds 9,656,427 shares worth 9,656,427. A second-largest stockholder of SHLS, BlackRock Fund Advisors, holds 9,416,910 shares, controlling over 8.30% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SHLS, holding 6,452,191 shares or 5.68% stake. With a 2.71% stake in SHLS, the iShares Russell 2000 ETF is the largest stakeholder. A total of 3,070,339 shares are owned by the mutual fund manager. The Invesco Solar ETF, which owns about 2.67% of SHLS stock, is the second-largest Mutual Fund holder. It holds 3,032,804 shares valued at 74.82 million. Vanguard Total Stock Market Index holds 2.31% of the stake in SHLS, owning 2,623,041 shares worth 64.71 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SHLS since 15 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SHLS analysts setting a high price target of $41.00 and a low target of $20.00, the average target price over the next 12 months is $31.92. Based on these targets, SHLS could surge 40.27% to reach the target high and fall by -31.58% to reach the target low. Reaching the average price target will result in a growth of 9.2% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SHLS will report FY 2022 earnings on 03/08/2024. Analysts have provided yearly estimates in a range of $0.32 being high and $0.29 being low. For SHLS, this leads to a yearly average estimate of $0.30. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Shoals Technologies Group Inc. surprised analysts by $0.02 when it reported $0.10 EPS against a consensus estimate of $0.08. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.09 and the low estimate is $0.08. The average estimate for the next quarter is thus $0.08.
Summary of Insider Activity:
Insiders traded SHLS stock several times over the past three months with 3 Buys and 11 Sells. In these transactions, 21,896,062 shares were bought while 49,909,142 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 23 over the past year. The total number of shares bought during that period was 22,308,350 while 50,194,401 shares were sold.