Arizona State Retirement System Amplifies Its Investment in Shoals Technologies Group, Inc. Amidst Expanding Solar and Electric Vehicle Markets
Publication Date: July 24, 2023
In a recent disclosure with the Securities and Exchange Commission (SEC), the Arizona State Retirement System announced a significant increase of 52.6% in its position within Shoals Technologies Group, Inc. (NASDAQ: SHLS) during the first quarter. As of the end of the reporting period, the institutional investor held an impressive 48,525 shares of Shoals Technologies Group’s stock, having purchased an additional 16,733 shares.
At the closing price stated on Monday’s opening, SHLS shares stood at $26.38 on the NASDAQ exchange. With a remarkable market cap of $4.48 billion and a beta rating of 2.06, this fast-growing company offers electrical balance-of-system (EBOS) solutions and components catered specifically to solar energy systems, battery storage applications, and electric vehicle charging infrastructure in America.
Shoals Technologies Group prides itself on delivering top-notch EBOS components that encompass a wide range of products crucial for seamless energy management systems within these industries. This includes cable assemblies, inline fuses, combiners/disconnects/recombiners for optimized power flow distribution systems as well as wireless monitoring solutions enabling efficient maintenance and diagnostics.
Other product offerings from Shoals Technologies include junction boxes that ensure safe electrical connections while minimizing performance losses; transition enclosures designed to protect sensitive equipment during shifts from indoor to outdoor installations or vice versa; splice boxes that simplify cable management; and wire management solutions for organized and clutter-free setups.
The strategic investment made by Arizona State Retirement System attests to their belief in Shoals Technologies’ potential growth prospects amidst the rapidly expanding renewable energy sector. The company’s products are ideally positioned to cater to increasing demands stemming from government initiatives promoting clean energy adoption, heightened environmental consciousness, and the electrification of transportation.
Underscoring Shoals Technologies’ solid financial position and potential for investors, the one-year low of $17.10 is evidence of a strong foundation, while the one-year high at $32.43 attests to the tremendous growth experienced by the company.
Additionally, Shoals Technologies boasts a debt-to-equity ratio of 0.46, emphasizing its responsible financial management practices. With a current ratio of 2.83 and quick ratio of 1.69, the company demonstrates its ability to meet short-term obligations promptly.
Investors have taken notice of these impressive financials and promising industry dynamics, as reflected in the stock’s performance over previous months. The fifty-day moving average price has been recorded at $24.57, while the two-hundred day moving average price stands slightly higher at $24.05.
Looking ahead, Shoals Technologies Group is poised to further capitalize on growing solar energy installations both residentially and commercially within the United States. Moreover, with electric vehicles becoming increasingly prevalent on American roads, Shoals Technologies is well-positioned to support the expanding demand for efficient charging infrastructure across the nation.
With strategic investments from renowned institutional investors like Arizona State Retirement System alongside robust product offerings tailored to evolving market demands, Shoals Technologies Group is set to make a lasting impact on advancing a sustainable future built on renewable energy sources and efficient power distribution systems.
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Shoals Technologies Group Sees Growing Interest from Investors and Positive Analyst Feedback
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”SHLS” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Shoals Technologies Group, Inc. (NASDAQ: SHLS), a leading provider of electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle charging applications, has been witnessing significant changes in its holdings and investments lately. Notable institutional investors and hedge funds have adjusted their positions in the company, indicating growing interest in Shoals Technologies Group.
One such investor is TFC Financial Management Inc., which raised its stake in Shoals Technologies Group by an astounding 511.6% during the fourth quarter of 2022. TFC Financial now owns 1,315 shares of the company’s stock, with an estimated value of $32,000 after acquiring an additional 1,100 shares in the last quarter.
MetLife Investment Management LLC also demonstrated confidence in Shoals Technologies Group as they acquired a new position in the company during the first quarter of this year. This move emphasized MetLife’s belief in the promising future prospects of Shoals Technologies Group as they invested approximately $36,000 into acquiring this new position.
Another investor that recognized the growth potential of Shoals Technologies Group is Toroso Investments LLC. They purchased a new position during the third quarter valued at $44,000. Capitalizing on opportunities presented by emerging technologies like solar energy and electric vehicle chargers seems to be a strategic move for Toroso Investments.
Captrust Financial Advisors also expanded its stake in Shoals Technologies Group during the first quarter by an impressive 89.8%. With an additional 1,496 shares now held by Captrust Financial Advisors valued at $54,000, it demonstrates their long-term perspective on the potential growth trajectory of this solar technology-focused company.
Joining these impressive investors is PNC Financial Services Group Inc., which increased its stake in Shoals Technologies Group by a substantial 562.3% during the fourth quarter of last year. As a result, PNC Financial Services currently owns 3,252 shares of the company’s stock, valued at $80,000.
These changes in holdings and investments in Shoals Technologies Group by esteemed institutional investors have piqued the interest of market watchers and analysts. Numerous brokerages have shared their perspective on SHLS, shedding light on the company’s potential for growth and success.
For instance, Morgan Stanley recently decreased their price objective on Shoals Technologies Group from $32.00 to $29.00. Despite the slight decrease in target price, they maintained an “equal weight” rating for the company.
JPMorgan Chase & Co., on the other hand, upped their price objective on Shoals Technologies Group from $35.00 to $38.00. This positive adjustment indicates a bullish stance towards Shoals Technologies Group’s future performance.
Cantor Fitzgerald also expressed their opinion by reducing their price objective on Shoals Technologies Group from $30.00 to $27.00 but still maintaining optimism regarding its prospects.
Barclays, however, presented a more cautious view by downgrading shares of Shoals Technologies Group from an “equal weight” rating to an “underweight” rating. They also lowered their target price from $27.00 to $19.00.
Truist Financial provided more upbeat feedback by increasing its price target on shares of Shoals Technologies Group from $32.00 to $35.00.
Overall, according to Bloomberg data, the consensus rating for Shoals Technologies Group stands at “Moderate Buy,” with a consensus price target of approximately $31.77 among investment analysts.
Shoals Technologies Group’s core business revolves around providing electrical balance of system (EBOS) solutions and components for solar energy systems, battery energy applications, and electric vehicle charging infrastructure within the United States market. The company manufactures various EBOS components ranging from cable assemblies and junction boxes to splice boxes and wireless monitoring systems.
In terms of financial performance, Shoals Technologies Group released its quarterly earnings results on May 8th. The company reported earnings per share (EPS) of $0.12 for the quarter, surpassing the consensus estimate of $0.08 by $0.04. The company’s net margin was recorded at an impressive 38.26%, and it demonstrated a strong return on equity of 29.36%. Moreover, Shoals Technologies Group generated revenue of $105.09 million during the quarter, surpassing the consensus estimate of $98.64 million.
Recent news regarding insider transactions reveals that the General Counsel, Mehgan Peetz, sold 7,279 shares of Shoals Technologies Group’s stock in June at an average price of $24.78 per share. This transaction amounted to a total transaction value of approximately $180,373.62. Currently, the general counsel retains ownership of 83,375 shares in the company valued at roughly $2,066,032.50.
In conclusion, with multiple institutional investors and hedge funds modifying their holdings and investments in Shoals Technologies Group and positive feedback received from various brokerages on its growth potential and market performance, there is mounting excitement surrounding this solar technology-focused company as it continues to make strides in
