|Bid||0.00 x 1200|
|Ask||0.00 x 800|
|Day's Range||35.55 - 38.75|
|52 Week Range||29.05 - 44.44|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||44.29|
Array Technologies (NASDAQ:ARRY) has a valuable product and is growing rapidly. Moreover, it’s in the solar sector, which is likely to expand tremendously in coming years. But given the relatively high valuation of Array Technologies stock, along with uncertainty tied to the upcoming U.S. presidential election, I believe that investors should wait for a pullback before buying shares. Source: Shutterstock Array develops and markets solar trackers which ensure that solar panels are optimally aligned with the sun. Unlike its competitors, whose trackers use multiple motors, Array’s systems run on only one motor. Additionally, Array says that its technology is more reliable and cheaper than that of its competitors. Indicating that its assertions about the strengths of its products are correct, the company is growing rapidly. Specifically, in 2019 its revenue jumped 122%, and its top line has surged 145% in the first six months of this year to $552 million.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Additionally, operating profits for the first six months of this year came in at almost $103 million. That number is already above the same metric for the entire span of 2019. And a Seeking Alpha columnist estimates that Array will generate earnings per share of $1.20 this year. Meanwhile, research firm Wood McKenzie has estimated that the use of solar energy will surge 37% in the U.S. in 2020, and the International Energy Agency recently declared that solar would become the “king of electricity.” The organization predicted that worldwide solar installations would increase by an average of 12% annually going forward. Valuation Is an Issue for Array Technologies Stock The market capitalization and price-sales ratio of Array Technologies stock are significantly higher than those of some major solar energy companies. For example, Array’s market capitalization of $5.3 billion is meaningfully above JinkoSolar’s (NYSE:JKS) $2.9 billion and Canadian Solar’s (NASDAQ:CSIQ) $2.4 billion. And Array’s trailing price-sales ratio is 5.1 times, versus 0.6 times and 0.76 times for JinkoSolar and Canadian Solar, respectively. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes Solar inverter makers Enphase (NASDAQ:ENPH) and SolarEdge (NASDAQ:SEDG) have much higher market capitalizations and price-sales ratios than Array. But Enphase and SolarEdge also have meaningfully higher gross margins than Array. Specifically, Enphase’s gross margin so far this year is over 37%, while SolarEdge’s gross margin is 33% and Array’s gross margin this year is 25%. Investors tend to give companies with higher gross margins much larger valuations. Political Uncertainty The conventional wisdom is that former Vice President Joe Biden, who plans to spend trillions of dollars on making the U.S. greener, will win the upcoming presidential election. Lately, however, the polls have been tightening. Further, Biden is only 0.2 percentage points ahead, on average, in swing-state polls compared to former Secretary of State Hillary Clinton in 2016. In fact, I believe that the large decline in solar stocks earlier this week was primarily due to a broad realization that Trump could win the election. And if he is reelected, these names are likely to drop another 15%-25% over the subsequent two weeks. Meanwhile, if Biden wins, they probably will not gain much more than 10%-15%. Why? I believe they’re already pricing in a 70%-80% chance of a Biden victory. The Bottom Line on Array Technologies Stock In a recent article on Array, InvestorPlace analyst Matt McCall called Array “a bit too hot to touch.” He added that “on a pullback, consider this a screaming buy.” I agree with that view. The company has a huge, longer-term opportunity, but its valuation is currently too steep. Further, the risk-reward ratio of Array Technologies stock ahead of the U.S. election is negative. Therefore, I would advise investors to look to buy the shares after the election for around $32-$33. On the date of publication, Larry Ramer held a long position in JinkoSolar. Larry Ramer has conducted research and written articles on U.S. stocks for 13 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been Roku, solar stocks, and Snap. You can reach him on StockTwits at @larryramer. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post Wait for a Post-Election Pullback to Buy Array Technologies Stock appeared first on InvestorPlace.
ALBUQUERQUE, N.M., Oct. 19, 2020 (GLOBE NEWSWIRE) -- Array Technologies, Inc. (the “Company”) today announced the closing of its upsized initial public offering of 54,625,000 shares of common stock. The offering consisted of 7,000,000 shares of common stock issued and sold by the Company and 47,625,000 shares of common stock sold by a parent entity of the Company controlled by Oaktree Capital (the “Selling Stockholder”), which included an additional 7,125,000 shares of the Company’s common stock following the exercise in full of the underwriters’ option to purchase additional shares of the Company’s common stock from the Selling Stockholder, in each case at an initial public offering price of $22.00 per share. The Company did not receive any of the proceeds from the sale of shares offered by the Selling Stockholder. The common stock began trading on the Nasdaq Global Market under the symbol “ARRY” on October 15, 2020. Goldman Sachs & Co. LLC and J.P. Morgan acted as joint book-running managers and representatives of the underwriters for the offering. Guggenheim Securities and Morgan Stanley acted as joint book-running managers and Credit Suisse, Barclays and UBS Investment Bank acted as book-runners. Cowen, Oppenheimer & Co. Inc., MUFG and Nomura acted as co-managers.The offering was made only by means of a prospectus, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) and available on the SEC’s website at www.sec.gov. Copies of the final prospectus relating to this offering may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282 (telephone: (866) 471-2526 or email: firstname.lastname@example.org); J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (telephone: 1-866-803-9204), or by email at email@example.com; Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison, 8th Floor, New York, NY 10017, by telephone at (212) 518-9658, or by email at GSEquityProspectusDelivery@guggenheimpartners.com; and Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.A registration statement relating to the offering has been filed with the SEC and declared effective on October 14, 2020. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.About Array Technologies, Inc.Array Technologies is one of the world’s largest manufacturers of ground-mounting systems used in solar energy projects. The Company’s principal product is an integrated system of steel supports, electric motors, gearboxes, electronic controllers and software, commonly referred to as a single-axis “tracker.” Trackers move solar panels throughout the day to maintain an optimal orientation to the sun, which significantly increases their energy production. Solar energy projects that use trackers generate up to 25% more energy and deliver a lower levelized cost of energy than projects that use conventional “fixed tilt” mounting systems. Array Technologies is headquartered in the United States with offices in Europe, Central America, and Australia.Forward Looking StatementsThis press release contains forward looking statements, including statements regarding the initial public offering. These statements are not historical facts but rather are based on the Company's current expectations and projections regarding its business, operations and other factors relating thereto. Words such as "may," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expects," "intends," "plans," "projects," "believes," "estimates" and similar expressions are used to identify these forward looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Actual results may differ materially from those in the forward looking statements as a result of a number of factors, including those in the Company's registration statement filed with the Securities and Exchange Commission.SOURCE Array Technologies, Inc.Media Contact: James McCusker, 203-585-4750 firstname.lastname@example.orgInvestor Relations Contact: 505-437-0010 email@example.com
Despite political and economic uncertainty, U.S. exchanges still lead IPO activity in terms of the number of deals and total proceeds.