Why Shoals Technologies Group (SHLS) Shares Are Seeing Blue Skies

Shoals Technologies Group Inc SHLS shares are trading higher by 9.2% to $7.43 during Tuesday’s session after the company announced a $150 million share repurchase program for its Class A common stock, effective through December 31, 2025.

The program will be funded by cash reserves, free cash flow and credit facility borrowings. CEO Brandon Moss stated this reflects confidence in Shoals’ growth.

Shoals also entered an Accelerated Share Repurchase (ASR) agreement with Jefferies LLC for $25 million, initially receiving about 2.2 million shares. The final number of shares will depend on the average stock price during the ASR, expected to complete in third-quarter 2024.

CFO Dominic Bardos added that the repurchase is part of Shoals’ broader value creation strategy, which includes investing in technology, acquisitions, debt reduction and further share repurchases. The timing and amount of repurchases will vary based on various factors.

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Is SHLS A Good Stock To Buy?

Wall Street analysts view Shoals Technologies on the whole as a Buy, given the history of coverage over the past three months. Donovan Schafer from Northland Capital Markets in Shoals Technologies Gr is the most bearish, expecting a 50.0% fall in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Shoals Technologies fell 38.88%, which indicates that opinion soured on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which fell 13.59% over the past year.

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