What Happened?
Shares of solar tracking systems manufacturer Array (NASDAQ:ARRY) fell 4.3% in the afternoon session after Barclays downgraded the stock to Equal-Weight from Overweight, citing concerns over slowing growth and pressure on margins.
The firm pointed to several quarters of soft orders, which led to an expectation of little underlying growth in 2026, excluding a recent acquisition. The downgrade signaled a more cautious outlook on the company's ability to expand its business profitably in the near term. Despite lowering the rating, Barclays did increase its price target on the shares to $9.00 from $8.00.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Array? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Array’s shares are extremely volatile and have had 74 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 22 hours ago when the stock gained 10.3% on the news that analysts at both Baird and Deutsche Bank initiated coverage on the stock with favorable ratings.
Baird assigned an "Outperform" rating, while Deutsche Bank started its coverage with a "Buy" rating, with both firms setting a price target of $11.00. In its analysis, Baird noted that the solar tracker maker stands to benefit from U.S. policy clarity and rising utility-scale solar demand. Deutsche Bank referred to Array Technologies as a "turnaround story," citing the management's focus on high-quality customers and a growing backlog of orders. The positive analyst sentiment coincided with a broader rally in the clean energy sector, supported by favorable developments such as changes in the EU's electricity market to better integrate solar energy.
Array is up 29.2% since the beginning of the year, and at $8.71 per share, it is trading close to its 52-week high of $9.56 from August 2025. Investors who bought $1,000 worth of Array’s shares at the IPO in October 2020 would now be looking at an investment worth $238.96.
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