Shoals Technologies Stock Dips Following A Proposed Offering to Terminate a Tax Settlement

Shoals Technologies Stock (SHLS:NSD) Analysis:

Last Closing Price: $23.30

Consensus Analyst Rating: Buy

12-Month Price Target: $29.29

Market CAP: $3.29 Billion

 

Shoals Technologies (SHLS:NSD) fell -17.1% on Thursday after the company disclosed plans for a 20M-share public offering, consisting of 2M shares sold by the company and 18M shares by entities affiliated with founder Dean Solon, as well as the imminent departure of CEO Jason Whitaker for health reasons.

Shoals (SHLS) “intends to exercise its TRA Termination Right and use the net proceeds from the offering to cover a portion of the TRA Termination Consideration, with the balance paid using cash on hand” in connection with the offering.

Jon Windham, an analyst at UBS, welcomes the termination of the “confusing” Tax Receivable Agreement, stating that it was an impediment to many investors buying the company and that “the removal of the TRA simplifies the SHLS story and will have a long-term beneficial impact on the SHLS value.”

According to Windham, the TRA “was a financial structure that contractually obligated SHLS to provide cash payments to the TRA owners (the founder and former shareholders) based on SHLS’ achieved tax savings from earlier corporate transactions.”

Shoals Technologies (SHLS) is “one of the most intriguing growth stories in solar and EV charging,” according to a study published on Seeking Alpha by Overlooked Opportunities. However, inventory building signals that too much capital is tied up, and gross margins could contract in the future.

 

Analyst Forecasts:

Oppenheimer Holdings targets up the Shoals Technologies stock price to $41.

JP Morgan & Company targets up the Shoals Technologies stock price to $35.

 

About Shoals Technologies Group Inc. (SHLS:NSD:

Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions for solar energy projects in the United States. It produces EBOS components, including cable assemblies, inline fuses, combiners, disconnects, recombiners, wireless monitoring systems, junction boxes, transition enclosures, splice boxes, wire management solutions, and IV curve benchmarking devices.

The company also sells EV Charging solutions for public and fleet electric vehicle charging stations; and EBOS systems. It sells its products principally to engineering, procurement, and construction firms that build solar energy projects and install electric vehicle charging stations. Shoals Technologies Group, Inc. was founded in 1996 and is headquartered in Portland, Tennessee.

 

Sunrun Stock (RUN:NSD)–Q3 2022 Earnings Releasing on Wednesday

Third-quarter 2022 earnings of Sunrun stock are to be released on Wednesday, November 02. For the third quarter of 2022, analysts expect Sunrun Inc. (RUN:NSD) to report earnings of $0.01 per share.

Interest in solar stocks has soared over the past year as investors anticipate a bright future for the industry. Several publicly listed companies have partnered with residential solar providers to take advantage of this growing trend.

With the sun shining more brightly than ever on solar stocks, it’s worth taking a closer look at how these companies are faring right now and what to expect going forward.

 

About Sunrun Inc. (RUN:NSD):

Sunrun is a residential solar energy company offering services in 19 U.S. states and two Canadian provinces. The company offers solar energy systems to homeowners and businesses either through outright purchases or leasing. According to its website, Sunrun has over 3 million customers across the U.S. and Canada.

Sunrun competes with other solar energy providers like SolarCity, Vivint Solar, and Tesla. Residential solar is a growing industry and investors have been keeping a close eye on these companies. Sunrun stock has surged strongly since it went public in October 2018, though they have fallen back over the past few months.

 

Sunrun Stock Performance:

Sunrun stock began trading on Wednesday at $21.14. Solar energy company Sunrun Inc. with a market value of $4.48 billion, has a PE ratio of -37.75, and a beta of 2.26.

The debt-to-equity ratio, quick ratio, and current ratio for the corporation are each 1.08, 1.17, and 1.73, respectively.

The company’s 50 and 200-day moving average prices are $30.50 and $27.03, respectively. Sunrun’s 52-week high is $60.60 and its 52-week low is $16.80.

 

Sunrun Inc. (RUN) Q2 2022 Earnings Preview:

On Wednesday, August 3rd, Sunrun (RUN:NSD) released its most recent earnings report. The solar energy firm topped analysts’ consensus expectations of $0.20 by $0.14 with $0.06 earnings per share for the quarter.

In contrast to the consensus estimate of $485.04 million, the company’s revenue for the quarter was $584.58 million. Sunrun had a negative net margin of 5.86% and a negative return on equity of 1.39%. For the current and following financial years, Sunrun is anticipated by analysts to report $-1 EPS.

Get detailed analysis here; (RUN:NSD)

 

Selling and Buying by Insiders:

On Wednesday, August 10th, insider Lynn Michelle Jurich sold 75,000 shares of Sunrun stock. The stock was sold for a total of $2,597,250.00 at an average price of $34.63. Following the transaction, the insider now owns 1,459,226 shares in the business, which are worth $50,532,996.38.

In another insider news, on August 16th, insider Edward Harris Fenster sold 25,000 shares of Sunrun stock. A total of $884,500 was spent on the sale of the shares, which were sold at an average price of $35.38. Following the transaction, the insider now owns 1,585,134 shares in the business, which are worth roughly $56,082,040.92.

Over the past three months, insiders have sold 368,327 shares of company stock worth $12,533,106. Insiders are the owners of 4.29% of the Sunrun stock.

 

Sunrun Stock-Analyst Forecast & Price Targets:

On Thursday, August 4th, Evercore ISI raised their Sunrun stock price target from $64.00 to $67.00.

On Friday, August 5th, Barclays began covering Sunrun’s stock with an “overweight” rating and a $46.00 price target.

On Thursday, August 4th, BMO Capital Markets raised its price target on Sunrun from $38.00 to $40.00 with an “outperform” rating.

On September 28th, Northland Securities began to cover Sunrun with an “outperform” rating and a $60.00 price target.

On Wednesday, June 29th, Wells Fargo & Company started covering Sunrun stock with an “equal weight” rating and a $27.00 target price.

The company’s stock has been given a “Buy” rating by 14 analysts, while 3 analysts have given the stock a “Hold” rating. The average analyst Sunrun stock price target is $47.94 per share over the next 12 months.

 

Why Investors Are So Interested in Solar Stocks Right Now?

Investors have been flocking to solar stocks for several reasons. First and foremost, solar energy is an essential source of power that’s both environmentally friendly and increasingly affordable. This makes it a good bet for the future, even if the short-term outlook is less predictable.

Meanwhile, the costs of solar energy have fallen rapidly in recent years thanks to technological advances and economies of scale, opening up a lucrative opportunity for investors.

Finally, the federal Solar Investment Tax Credit is potentially sending solar stocks soaring as companies rush to complete projects ahead of the deadline. The solar industry has proven to be dynamic, innovative, and a risk-worthy sector for investors.

The cost of solar power has fallen rapidly in recent years, and it’s expected to keep dropping. There are also a number of different incentives and rebates that can help homeowners offset the initial cost of installing solar panels on their roofs.

All of these factors have contributed to solar energy’s rapid growth, making it an increasingly important part of the global energy mix.

Analysts rate Enphase Energy Inc. (ENPH:NSD) with a Strong Buy rating and a $262 target

Guggenheim Securities rates Enphase Energy Stock as neutral.

Based on the Enphase Energy Stock Forecast from 17 analysts, the average analyst ENPH stock price target price for Enphase Energy Inc is USD 262.80 over the next 12 months. Enphase Energy Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of ENPH stock forecast is Slightly Bullish, which is based on 10 positive signals and 6 negative signals. At the last closing, Enphase Energy Inc’s stock price was USD 261.60Enphase Energy Inc’s stock price has changed by -30.71% over the past week, -17.47% over the past month and +70.33% over the last year.

 

About Enphase Energy Inc. (ENPH:NSD):

Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level, and combines with its proprietary networking and software technologies to provide energy monitoring and control services. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.

 

What we like:

High market capitalization:

Enphase Energy stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

Enphase Energy stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

ENPH stock forecast shows that the company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

ENPH stock forecast shows that the company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

Enphase Energy stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth:

Enphase Energy stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio:

Enphase Energy stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

High volatility:

The total returns for ENPH stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings:

Enphase Energy Stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

Enphase Energy Stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

Enphase Energy Stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the market news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

ENPH stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

 

Analysts rate SunPower Corporation (SPWR:NSD) with a Hold rating and a $21 target

Morgan Stanley maintains the $31 SPWR stock price target and rates as Equal-Weight.

Based on the SunPower stock forecast from 13 analysts, the average analyst SPWR stock price target is USD 21.73 over the next 12 months. SunPower Corporation’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of SunPower stock is Very Bearish, which is based on 0 positive signals and 6 negative signals. At the last closing, SunPower stock price was USD 27.37SunPower stock price has changed by +3.37% over the past week, +3.29% over the past month and +28.44% over the last year.

About SunPower Corporation (SPWR:NSD):

SunPower Corporation, a solar technology and energy services provider, offers solar, storage, and home energy solutions to customers primarily in the United States and Canada. It operates through Residential, Light Commercial; Commercial and Industrial Solutions; and Others segments. The company provides solar, storage, and home energy solutions and components through a combination of its third-party installing and non-installing dealer network and resellers, as well as in-house sales team; and turn-key engineering, procurement, and construction services and sale of energy under power purchase agreements. The company was incorporated in 1985 and is headquartered in San Jose, California. SunPower Corporation is a subsidiary of TotalEnergies SE.

 

Most Recent Analyst Ratings for SunPower:

 

What we like:

There is nothing we particularly like about SunPower stock.

 

What we don’t like:

Overpriced compared to earnings:

SPWR stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

SPWR stock price is trading high compared to its peers median on a price to book value basis.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the SunPower stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow:

SunPower stock had negative total cash flow in the most recent four quarters.

Negative free cash flow:

SunPower stock had negative total free cash flow in the most recent four quarters.

Low Revenue Growth:

SPWR stock has shown below median revenue growth in the previous 5 years compared to its sector

Goldman Sachs Downgrades Canadian Solar Inc.(CSIQ:NSD) to a Sell rating

Goldman Sachs Downgrades Canadian Solar Inc. to a Sell and lowers the target price to $38 from $48 on the company’s stock.

Based on the Canadian Solar Inc stock forecasts from 3 analysts, the average analyst target price for Canadian Solar Inc is USD 0.00 over the next 12 months. Canadian Solar Inc’s average analyst rating is Under-perform. Stock Target Advisor’s own stock analysis of Canadian Solar Inc is Bullish , which is based on 12 positive signals and 2 negative signals. At the last closing, Canadian Solar Inc’s stock price was USD 47.01Canadian Solar Inc’s stock price has changed by +4.07% over the past week, +21.57% over the past month and +25.76% over the last year.

About Canadian Solar Inc (CSIQ:NSD)

Canadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power and battery storage products in Asia, the Americas, Europe, and internationally. The company operates through two segments, Canadian Solar Inc. (CSI) Solar and Global Energy. The CSI Solar segment offers standard solar modules and battery storage solutions, as well as solar system kits that are a ready-to-install packages comprising inverters, racking systems, and other accessories; and engineering, procurement, and construction (EPC) services. The Global Energy segment engages in the development, construction, maintenance, and sale of solar and battery storage projects; operation of solar power plants; and sale of electricity. This segment also provides operation and maintenance (O&M) services, including monitoring, inspections, repair, and replacement of plant equipment; and site management and administrative support services for solar projects, as well as asset management services. As of January 31, 2021, this segment had a fleet of solar power plants in operation with an aggregate capacity of approximately 445 MWp. The company serves distributors, system integrators, project developers, and installers/EPC companies. It sells its products primarily under its Canadian Solar brand name; and on an OEM basis. The company was incorporated in 2001 and is headquartered in Guelph, Canada.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.