Shoals Technologies rallies 14% on share buyback plan

Shoals Technologies

11/06/2024 18:18

** Shares of Shoals Technologies  SHLS.O  jump as much as
14.1% to $7.77 on Tues as co looks to buy back stock
    ** SHLS last up 7.1% at $7.30, trimming YTD loss to ~53%
    ** Solar components supplier early Tues announced up to $150
mln share repurchase program effective through 2025
    ** Co expects to fund repurchases with cash, free cash flow
and borrowings under its credit facilities
    ** In connection with repurchase, it entered into
accelerated share repurchase agreement (ASR) with Jefferies
 JEF.N , to repurchase $25 mln in stock
    ** Under ASR terms, co to receive initial delivery of ~2.2
mln shares, representing 60% of the ASR, based on SHLS closing
price of $6.81 on Mon
    ** Shoals has ~170.4 mln shares outstanding for roughly $1.2
bln market cap, per LSEG data
    ** 15 of 19 analysts covering Shoals rate stock "strong buy"
or "buy", 3 rate hold and 1 has "sell"
    ** Median PT of $13 unchanged from a month ago, down from
$20 on Apr 11

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))