LEN, ARRY Stocks Hit New Lows As Price Target Cuts Pile Up — What’s Driving The Selloff?

• UBS said a change in how Array pays dividends on its preferred stock has weakened its outlook for how the company can use future cash flow.
• Barclays cut Lennar’s price target to $70 from $79 and maintained an ‘Underweight’ rating, saying uncertainty around the homebuilder is ‘only growing.’
• RBC Capital cut LEN’s price target to $69 from $85 and maintained an ‘Underperform’ rating.

Array Technologies (ARRY) and Lennar (LEN) shares sank to fresh lows on Friday as analyst downgrades and price-target cuts added to concerns around the companies, pushing ARRY to its lowest level in more than 17 months and LEN to a nearly four-year low.

At the time of writing, LEN shares were down 4.5% while ARRY stock slumped 7%.

UBS Slashes ARRY Target By 50%

UBS downgraded Array Technologies to ‘Neutral’ from ‘Buy’ and slashed its price target to $5 from $10. The firm said a change in how Array pays dividends on its preferred stock has weakened its outlook for how the company can use future cash flow.

Array’s preferred dividends switched from being added to the value of the preferred shares to being paid in cash starting in August. The company expects to pay about $12 million for the remainder of 2026.

UBS estimates these payments will total roughly $162 million through 2030, consuming about 25% of its projected cumulative free cash flow, according to Investing.com. While UBS believes Array can afford the payments, it said they leave less cash to reduce debt, invest in growth, and pursue acquisitions.

Retail sentiment surrounding ARRY on Stocktwits remained ‘bearish’ over the past 24 hours. The stock has crashed 60% so far in 2026.

Lennar’s Weak Q3 Margins Worry Wall Street

Barclays cut Lennar’s price target to $70 from $79 and maintained an ‘Underweight’ rating, saying uncertainty around the homebuilder is “only growing.” The firm sharply lowered its fiscal 2027 estimates, citing weaker margins and higher costs associated with Lennar’s land-banking strategy.

BTIG also lowered the target to $63 from $67 and kept a ‘Sell’ rating. The brokerage said Lennar’s core homebuilding business missed expectations across the board as demand weakened more than anticipated.

Meanwhile, RBC Capital cut the price target to $69 from $85 and maintained an ‘Underperform’ rating, citing weaker Q4 guidance and continued pressure on homebuilding margins.

Lennar reported Q3 revenue of $8.04 billion, below estimates of $8.35 billion and marking its third consecutive quarterly revenue miss, according to Fiscal.ai. Earnings of $1.23 per share also fell short of expectations.

Retail sentiment surrounding LEN on Stocktwits was also ‘bearish.’ The stock is down 27% so far in 2026.

Also read: Tesla Q3 Deliveries Could Beat Expectations, Says Barclays — Analyst Calls Fundamentals An ‘Afterthought’ To AI Story

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