What Happened?
Shares of solar tracking systems manufacturer Array (NASDAQ: ARRY) jumped 10.8% in the afternoon session after investors reacted positively to favorable changes in clean energy tax credit guidance from the U.S. Treasury, which is expected to benefit solar tracker manufacturers.
The move comes as positive sentiment lifts the entire solar tracker sector after the IRS released updated safe-harbor rules for clean energy tax credits. An analyst at Guggenheim noted the rule changes are beneficial for tracker suppliers, prompting an upgrade for competitor Nextracker and fueling optimism for Array. This industry-wide catalyst builds on Array's recent positive momentum, including a strong second-quarter earnings report that surpassed expectations and led the company to raise its full-year guidance for revenue and earnings. Furthermore, Array recently completed the strategic acquisition of APA Solar, a move expected to be accretive to earnings and create new commercial synergies.
The shares closed the day at $8.43, up 10.6% from previous close.
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What Is The Market Telling Us
Array’s shares are extremely volatile and have had 75 moves greater than 5% over the last year. But moves this big are rare even for Array and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 3.1% on the news that an unexpectedly sharp rise in wholesale inflation fueled concerns about rising costs and their impact on corporate profits. The primary catalyst was the July 2025 Producer Price Index (PPI), a measure of inflation at the wholesale level, which jumped 0.9% against forecasts of a 0.2% rise. This represents the most significant monthly increase in over three years, pointing to mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, as persistent inflation may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.
Array is up 24.9% since the beginning of the year, and at $8.42 per share, it is trading close to its 52-week high of $8.44 from May 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 $231.00.
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