Are Smart Investors Making the Right Decision? Array Technologies Inc. (ARRY)

Array Technologies Inc. (NASDAQ: ARRY) stock fell -4.13% on Monday to $24.12 against a previous-day closing price of $25.16. With 2.73 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.46 million shares. During the session, the Solar company that operates in wider Technology sector, reached to the highest price of $25.33 whereas the lowest price it dropped to was $24.12. The 52-week range on ARRY shows that it touched its highest point at $26.64 and its lowest point at $13.86 during that stretch. It currently has a 1-year price target of $30.27. Beta for the stock currently stands at 1.78.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ARRY was up-trending over the past week, with a rise of 2.59%, but this was up by 18.18% over a month. Three-month performance surged to 13.72% while six-month performance rose 41.30%. The stock gained 33.93% in the past year, while it has gained 24.78% so far this year. A look at the trailing 12-month EPS for ARRY yields 0.48 with Next year EPS estimates of 1.44. For the next quarter, that number is 0.12. This implies an EPS growth rate of 42.80% for this year and 39.09% for next year.

Float and Shares Shorts:

At present, 150.92 million ARRY shares are outstanding with a float of 149.58 million shares on hand for trading. On Aug 30, 2023, short shares totaled 21.5 million, which was 14.23% higher than short shares on Jul 30, 2023. In addition to Mr. Kevin G. Hostetler as the firm’s CEO & Director, Mr. Nipul A. Patel serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 113.60% of ARRY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 66.06% of ARRY, in contrast to 46.61% held by mutual funds. Shares owned by individuals account for 24.85%. As the largest shareholder in ARRY with 8.83% of the stake, The Vanguard Group, Inc. holds 13,336,486 shares worth 13,336,486. A second-largest stockholder of ARRY, BlackRock Fund Advisors, holds 11,901,686 shares, controlling over 7.88% of the firm’s shares. Norges Bank Investment Management is the third largest shareholder in ARRY, holding 7,679,550 shares or 5.08% stake. With a 4.71% stake in ARRY, the Government Pension Fund – Global is the largest stakeholder. A total of 7,118,240 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.94% of ARRY stock, is the second-largest Mutual Fund holder. It holds 4,443,367 shares valued at 110.51 million. Handelsbanken Hallbar Energi holds 2.67% of the stake in ARRY, owning 4,026,542 shares worth 100.14 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, ARRY reported revenue of $424.93M and operating income of -$8.52M. The EBITDA in the recently reported quarter was $15.66M and diluted EPS was -$0.11.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ARRY since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ARRY analysts setting a high price target of $38.00 and a low target of $18.00, the average target price over the next 12 months is $30.31. Based on these targets, ARRY could surge 57.55% to reach the target high and fall by -25.37% to reach the target low. Reaching the average price target will result in a growth of 25.66% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded ARRY stock several times over the past three months with 1 Buys and 3 Sells. In these transactions, 7,051 shares were bought while 64,577 shares were sold. The number of buy transactions has increased to 27 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 380,240 while 117,035 shares were sold.

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