Generac (NYSE:GNRC) Shares Down 11% – Here’s What Happened

Generac Holdings Inc. (NYSE:GNRC)’s stock price was down 11% on Wednesday. The stock traded as low as $186.78 and last traded at $186.2540. 451,748 shares were traded during mid-day trading, a decline of 59% from the average session volume of 1,092,147 shares. The stock had previously closed at $209.28.

Analyst Ratings Changes

GNRC has been the topic of several recent research reports. UBS Group reiterated a “buy” rating on shares of Generac in a research report on Friday, September 25th. Piper Sandler cut their price objective on shares of Generac from $303.00 to $279.00 and set an “overweight” rating for the company in a research report on Friday, October 23rd. Stephens restated an “overweight” rating and issued a $335.00 price objective on shares of Generac in a research note on Thursday, September 17th. Raymond James Financial set a $279.00 target price on Generac in a report on Thursday, October 29th. Finally, Canaccord Genuity Group increased their target price on shares of Generac from $275.00 to $375.00 and gave the stock a “buy” rating in a report on Thursday, September 17th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Generac presently has a consensus rating of “Moderate Buy” and an average target price of $290.41.

Generac Price Performance

The firm has a market cap of $11.14 billion, a P/E ratio of 37.47, a P/E/G ratio of 1.72 and a beta of 1.86. The firm’s fifty day simple moving average is $199.20 and its 200 day simple moving average is $217.96. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.06 and a current ratio of 1.97.

Generac (NYSE:GNRC) last issued its earnings results on Wednesday, October 28th. The technology company reported $2.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.14. Generac had a return on equity of 18.78% and a net margin of 6.52%. The firm had revenue of $1.29 billion for the quarter, compared to analysts’ expectations of $1.32 billion. During the same period in the previous year, the firm posted $1.83 earnings per share. The business’s revenue was up 16.2% compared to the same quarter last year. As a group, analysts forecast that Generac Holdings Inc. will post 9.80 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Aaron Jagdfeld sold 5,000 shares of the business’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $182.21, for a total value of $911,050.00. Following the sale, the chief executive officer directly owned 549,528 shares in the company, valued at $100,129,496.88. The trade was a 0.90% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Norman Taffe sold 400 shares of the company’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $188.70, for a total transaction of $75,480.00. Following the sale, the insider owned 11,276 shares in the company, valued at $2,127,781.20. This represents a 3.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,892 shares of company stock valued at $2,561,730 in the last three months. Corporate insiders own 2.40% of the company’s stock.

Hedge Funds Weigh In On Generac

A number of institutional investors and hedge funds have recently modified their holdings of GNRC. N.E.W. Advisory Services LLC acquired a new position in Generac in the 2nd quarter valued at $25,000. Avalon Trust Co acquired a new stake in shares of Generac in the 1st quarter worth $32,000. Essential Partners LLC boosted its holdings in shares of Generac by 57.0% in the first quarter. Essential Partners LLC now owns 168 shares of the technology company’s stock valued at $33,000 after acquiring an additional 61 shares in the last quarter. Continuum Advisory LLC purchased a new stake in shares of Generac in the second quarter valued at about $51,000. Finally, Fiduciary Financial Advisors acquired a new position in shares of Generac during the second quarter worth about $50,000. Hedge funds and other institutional investors own 84.04% of the company’s stock.

About Generac

Generac Holdings Inc is a technology and energy solutions company that designs and manufactures power generation equipment and other energy-related products. Its offerings include standby and portable generators, commercial and industrial power systems, energy storage solutions, and products that help customers manage and monitor energy use.

The company serves residential, commercial, industrial, and utility customers. Its products are used for backup power, prime power, and distributed energy applications across homes, businesses, data centers, healthcare facilities, construction sites, and other critical operations.