Array Technologies, Inc.

Array Technologies, Inc. (NASDAQ: ARRY) manufactures solar energy ground-mounting systems. The company's product is a single-axis tracker, an integrated system of steel supports, electric motors, gearboxes, and electronic controllers that moves solar panels throughout the day to maintain an optimal alignment to the sun, increasing energy production.

Key Highlights:

• The company reported YoY growth of 37.72% in revenues to USD 192.07 million in Q3FY21 (ended September 30, 2021) compared to USD 139.46 million in Q3FY20
• ARRY witnessed an increase in net losses to USD 25.55 million in Q3FY21 vs. USD 7.23 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 116.39 million and total debt of USD 303.51 million. The company's debt/equity ratio is at 41.67x as of September 30, 2021, indicating a solvency risk to its balance sheet,
• ARRY announced on January 11, 2022, that it had completed its previously announced acquisition of Soluciones Técnicas Integrales Norland, S.L. (STI Norland), one of Europe's leading solar tracker producers.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 8.70 to USD 41.35.
• ARRY's stock price has fallen 63.08% and 51.41% in the past three and six months, respectively.

Two-Year Technical Price Chart (as of February 18, 2022; 02:27 PM ET). Analysis by Kalkine Group

Conclusion: Considering the topline growth, widened net losses, leveraged balance sheet, accretive acquisition growth, and technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 9.13, down 1.83%, as of February 18, 2022, 02:27 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.