Array Technologies Inc. [ARRY] Stock trading around $17.65 per share: What’s Next?


Array Technologies Inc. [NASDAQ: ARRY] loss -2.03% or -0.36 points to close at $17.65 with a heavy trading volume of 10447524 shares. The company report on November 30, 2021 that Array Technologies, Inc. Announces Pricing of Upsized Convertible Senior Notes Offering.

Array Technologies, Inc. (NASDAQ: ARRY) (the “Company” or “Array”) announced it has priced an upsized offering of $375 million aggregate principal amount of 1.00% convertible senior notes due 2028 (the “notes”) in a private offering (the “offering”) to eligible purchasers under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). Array expects the offering to close on December 3, 2021, subject to the satisfaction of customary closing conditions. The additional proceeds from upsized offering will enable the Company to reduce the amount of Series A Preferred Stock that the Company intends to issue to finance a portion of the cash consideration for the STI Acquisition (as defined below) from $100 million to $50.0 million. The reduction will result in fewer common shares being issued to the Series A Preferred holders and lower interest expense annually, thereby reducing the overall cost of capital for the STI Acquisition. Array has also granted the initial purchasers of the notes an option to purchase, within a 13-day period from, and including the date on which the notes are first issued, up to an additional $50.0 million aggregate principal amount of notes.

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The notes will be senior unsecured obligations of Array and will bear interest at a rate of 1.00% per annum, payable semiannually in arrears on June 1 and December 1 of each year, beginning on June 1, 2022. The notes will mature on December 1, 2028, unless earlier redeemed, repurchased or converted. The initial conversion rate will be 41.9054 shares of Array’s common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $23.86 per share of common stock). The initial conversion price of the notes represents a premium of approximately 32.5% over the last reported sale price of Array’s common stock on the Nasdaq Global Market (the “Nasdaq”) on November 30, 2021.

It opened the trading session at $17.84, the shares rose to $18.44 and dropped to $17.45, the range by which the price of stock traded the whole day. The daily chart for ARRY points out that the company has recorded 15.59% gains over the past six months. However, it is still -38.76% lower than its most recent low trading price.

If we look at the average trading volume of 2.58M shares, ARRY reached to a volume of 10447524 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Array Technologies Inc. [ARRY]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ARRY shares is $25.73 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ARRY stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Guggenheim have made an estimate for Array Technologies Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on October 20, 2021. While these analysts kept the previous recommendation, Truist raised their target price to Hold. The new note on the price target was released on October 15, 2021, representing the official price target for Array Technologies Inc. stock. Previously, the target price had yet another raise to $28, while Guggenheim analysts kept a Buy rating on ARRY stock.

The Average True Range (ATR) for Array Technologies Inc. is set at 1.76, with the Price to Sales ratio for ARRY stock in the period of the last 12 months amounting to 2.86. The Price to Book ratio for the last quarter was 294.17, with the Price to Cash per share for the same quarter was set at 0.87.

Trading performance analysis for ARRY stock

Array Technologies Inc. [ARRY] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -23.09. With this latest performance, ARRY shares dropped by -22.42% in over the last four-week period, additionally plugging by 15.59% over the last 6 months – not to mention a drop of -56.53% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ARRY stock in for the last two-week period is set at 34.84, with the RSI for the last a single of trading hit 26.53, and the three-weeks RSI is set at 39.94 for Array Technologies Inc. [ARRY]. The present Moving Average for the last 50 days of trading for this stock 20.51, while it was recorded at 20.98 for the last single week of trading, and 21.55 for the last 200 days.

Array Technologies Inc. [ARRY]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Array Technologies Inc. [ARRY] shares currently have an operating margin of +14.16 and a Gross Margin at +20.32. Array Technologies Inc.’s Net Margin is presently recorded at +6.77.

Return on Total Capital for ARRY is now 32.95, given the latest momentum, and Return on Invested Capital for the company is 18.23. Return on Equity for this stock inclined to 52.68, with Return on Assets sitting at 7.46. Additionally, ARRY Total Debt to Total Capital is recorded at 123.29, with Total Debt to Total Assets ending up at 64.84.

Reflecting on the efficiency of the workforce at the company, Array Technologies Inc. [ARRY] managed to generate an average of $151,859 per employee. Receivables Turnover for the company is 7.50 with a Total Asset Turnover recorded at a value of 1.10.Array Technologies Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.50 and a Current Ratio set at 2.30.

Array Technologies Inc. [ARRY]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Array Technologies Inc. posted 0.08/share EPS, while the average EPS was predicted by analysts to be reported at 0.06/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 33.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ARRY. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Array Technologies Inc. go to -1.29%.

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An analysis of insider ownership at Array Technologies Inc. [ARRY]

There are presently around $2,389 million, in the hands of institutional investors. The top three institutional holders of ARRY stocks are: FMR LLC with ownership of 15,081,694, which is approximately 56.384% of the company’s market cap and around 0.70% of the total institutional ownership; VANGUARD GROUP INC, holding 11,001,809 shares of the stock with an approximate value of $194.18 million in ARRY stocks shares; and BLACKROCK INC., currently with $184.67 million in ARRY stock with ownership of nearly 26.625% of the company’s market capitalization.

Positions in Array Technologies Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 113 institutional holders increased their position in Array Technologies Inc. [NASDAQ:ARRY] by around 43,517,201 shares. Additionally, 93 investors decreased positions by around 23,086,611 shares, while 20 investors held positions by with 68,729,996 shares. The mentioned changes placed institutional holdings at 135,333,808 shares, according to the latest SEC report filing. ARRY stock had 44 new institutional investments in for a total of 22,011,696 shares, while 42 institutional investors sold positions of 5,864,361 shares during the same period.