After sending shares modestly higher, about 1.3% over the first eight days of August, investors are warming up to Array Technologies (NASDAQ:ARRY) in a big way today. As of 10:48 a.m. EDT, Array's stock has already soared 11.7%
Presuming the company, a leading manufacturer of ground-mounted systems for solar power projects, will report strong second-quarter earnings tomorrow, some investors may be trying to grab shares while shares are still on the inexpensive side. The other factor driving the price higher -- and likely the more significant one -- is an analyst's action regarding the stock.
With the company reporting Q2 2021 earnings tomorrow, it seems likely that some investors are optimistic the company will bounce back after a disappointing first-quarter earnings report. Last quarter, Array Technologies reported year-over-year declines for revenue and adjusted EBITDA of 44% and 69%, respectively.
In all likelihood, the greater catalyst for the stock's movement today stems from Wall Street. Roth Capital Partners upgraded the stock to buy from neutral while keeping a $25 price target, according to Thefly.com. The analyst, Philip Shen, says he's "incrementally more bullish" on the stock and believes it can rise on "any healthy amount of good news" tomorrow. Investors are probably celebrating Roth Capital's bullish opinion on the stock after the bearish attention that Array Technologies received from the Street in July and in light of the fact that Shen had downgraded the stock to neutral from buy in May.
It's not atypical for investors to hit the buy button before growth companies report earnings. Similarly, it's common for investors to follow analysts and pick up shares of stocks to which they've taken a liking. It's important, however, that potential investors who have Array Technologies on their radars recognize that today's action in the stock is not a reflection of anything significant with the company's performance. For that, we'll have to see what the company reports tomorrow. Stay tuned.