Generac (NYSE:GNRC) Lowered to "Buy" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Generac from “strong buy” to “buy,” although broader analyst sentiment remains positive with a “Moderate Buy” consensus and an average price target of $295.40.
• Generac’s latest quarterly results beat expectations, reporting $2.91 in adjusted EPS versus the $2.01 consensus, while revenue rose 10.3% year over year to $1.17 billion.
• The company’s long-term generator supply agreement with Amazon Web Services could generate approximately $2.4 billion in 2027–2028 and up to $8 billion through 2033, expanding its data-center power business beyond seasonal residential demand.

Generac (NYSE:GNRC - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report issued on Saturday, Wall Street Zen reports.

Several other research analysts also recently commented on GNRC. Jefferies Financial Group reaffirmed a "buy" rating on shares of Generac in a report on Thursday. Zacks Research raised shares of Generac from a "hold" rating to a "strong-buy" rating in a report on Friday, July 31st. Wells Fargo & Company set a $280.00 target price on Generac in a research report on Thursday. JPMorgan Chase & Co. raised their price target on Generac from $261.00 to $265.00 and gave the stock an "overweight" rating in a report on Friday. Finally, Citigroup lifted their price target on Generac from $263.00 to $300.00 and gave the company a "neutral" rating in a research report on Thursday, July 2nd. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, Generac has an average rating of "Moderate Buy" and an average price target of $295.40.

Generac Stock Up 0.5%

GNRC stock opened at $208.18 on Friday. The stock has a fifty day moving average of $202.55 and a 200-day moving average of $226.45. Generac has a fifty-two week low of $134.80 and a fifty-two week high of $296.44. The company has a market capitalization of $12.28 billion, a price-to-earnings ratio of 47.97, a PEG ratio of 1.77 and a beta of 1.91. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.00 and a current ratio of 2.04.

Generac (NYSE:GNRC - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The technology company reported $2.91 EPS for the quarter, beating the consensus estimate of $2.01 by $0.90. The business had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.18 billion. Generac had a net margin of 5.82% and a return on equity of 17.83%. The company's revenue was up 10.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.65 earnings per share. As a group, equities research analysts predict that Generac will post 9.78 earnings per share for the current year.

Insider Buying and Selling at Generac

In related news, insider Kyle Raabe sold 603 shares of the stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $229.50, for a total value of $138,388.50. Following the sale, the insider owned 10,356 shares in the company, valued at approximately $2,376,702. This trade represents a 5.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Norman P. Taffe sold 550 shares of Generac stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $218.83, for a total value of $120,356.50. Following the sale, the insider directly owned 15,508 shares of the company's stock, valued at $3,393,615.64. This represents a 3.43% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 12,839 shares of company stock valued at $2,519,973 in the last three months. Company insiders own 2.40% of the company's stock.

Institutional Trading of Generac

Institutional investors and hedge funds have recently modified their holdings of the business. N.E.W. Advisory Services LLC bought a new stake in shares of Generac during the 2nd quarter valued at about $25,000. Avalon Trust Co bought a new position in shares of Generac in the first quarter worth approximately $32,000. Essential Partners LLC raised its stake in 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 purchasing an additional 61 shares in the last quarter. Continuum Advisory LLC purchased a new stake in Generac in the second quarter valued at approximately $51,000. Finally, Fiduciary Financial Advisors bought a new stake in Generac during the second quarter valued at approximately $50,000. Hedge funds and other institutional investors own 84.04% of the company's stock.

Generac News Summary

Here are the key news stories impacting Generac this week:

• Positive Sentiment: Generac signed a long-term agreement to supply backup generators for Amazon Web Services data centers. Initial deliveries are expected to total approximately $2.4 billion in 2027 and 2028, while the broader agreement could reach $8 billion through 2033. The contract gives Generac greater revenue visibility and expands its position in the rapidly growing data-center power market. Reuters article
• Positive Sentiment: The Amazon relationship could diversify Generac beyond seasonal residential generator demand. Analysts view the deal as evidence that the company can benefit from the power shortages and grid-connection delays affecting AI and hyperscale data-center construction. Amazon also received warrants to purchase up to roughly 1.69 million Generac shares, aligning its interests with the supplier. Generac Amazon deal article
• Positive Sentiment: Wall Street became more bullish following the announcement. JPMorgan raised its price target to $265 while maintaining an overweight rating; Canaccord lifted its target to $375 and kept a buy rating; and Stephens reaffirmed its overweight rating with a $335 target. A Seeking Alpha analysis also upgraded Generac to buy, citing a $1.6 billion data-center backlog and potential multi-year AI-related growth. Seeking Alpha analysis
• Neutral Sentiment: Two insiders, Kyle Raabe and Norman Taffe, sold shares worth approximately $138,000 and $34,000, respectively. Both transactions were executed under pre-arranged Rule 10b5-1 trading plans, and the executives retained substantial holdings, reducing the significance of the sales as a bearish signal. Investors should nevertheless monitor potential dilution from Amazon’s warrants and execution risks as Generac expands production.

About Generac

Generac Holdings Inc is an energy technology company that designs and manufactures power generation and energy management products. Its portfolio includes residential standby generators, portable generators, commercial and industrial generator systems, and related transfer switches, controls and monitoring technologies.

The company also offers clean energy and electrification solutions, including battery energy storage systems, solar-related products, electric vehicle chargers and load-management technologies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.