Generac (NYSE:GNRC) Price Target Raised to $265.00 at JPMorgan Chase & Co.

Key Points

• JPMorgan raised Generac’s price target to $265 from $261 and maintained an “overweight” rating, implying 30.61% upside from the prior close. Analysts overall hold a “Moderate Buy” consensus with an average target of $295.40.
• Generac reported quarterly EPS of $2.91, beating estimates of $2.01, while revenue rose 10.3% year over year to $1.17 billion. The stock traded at $202.89, well below its 12-month high of $296.44.
• The company’s broader outlook is supported by an agreement to supply Amazon with generators potentially worth up to $8 billion through 2033, although the deal brings customer-concentration, cost-pressure and potential shareholder-dilution risks.

Generac (NYSE:GNRC - Get Free Report) had its price target hoisted by analysts at JPMorgan Chase & Co. from $261.00 to $265.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm currently has an "overweight" rating on the technology company's stock. JPMorgan Chase & Co.'s target price indicates a potential upside of 30.61% from the company's previous close.

A number of other research analysts have also recently commented on the stock. DA Davidson set a $333.00 price target on shares of Generac in a research report on Thursday, July 30th. Wells Fargo & Company set a $280.00 price objective on shares of Generac in a research note on Thursday. Needham & Company LLC reaffirmed a "buy" rating and set a $283.00 target price on shares of Generac in a report on Thursday. Barclays decreased their target price on shares of Generac from $285.00 to $278.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 30th. Finally, Raymond James Financial set a $286.00 price target on shares of Generac in a research note on Thursday. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $295.40.

Generac Price Performance

GNRC stock traded down $4.34 during mid-day trading on Friday, hitting $202.89. 890,614 shares of the stock were exchanged, compared to its average volume of 1,074,137. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.04 and a quick ratio of 1.00. The business has a fifty day moving average price of $203.07 and a 200 day moving average price of $226.58. Generac has a 12 month low of $134.80 and a 12 month high of $296.44. The stock has a market capitalization of $11.97 billion, a price-to-earnings ratio of 46.66, a PEG ratio of 1.49 and a beta of 1.91.

Generac (NYSE:GNRC - Get Free Report) last announced 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 firm had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.18 billion. Generac had a return on equity of 17.83% and a net margin of 5.82%.The company's revenue was up 10.3% on a year-over-year basis. During the same period in the prior year, the company earned $1.65 EPS. On average, sell-side analysts anticipate that Generac will post 9.78 EPS for the current year.

Insider Transactions at Generac

In other news, insider Kyle Raabe sold 586 shares of Generac stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $213.35, for a total transaction of $125,023.10. Following the sale, the insider owned 10,746 shares of the company's stock, valued at approximately $2,292,659.10. The trade was a 5.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Norman Taffe sold 400 shares of Generac 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 directly owned 11,276 shares in the company, valued at $2,127,781.20. The trade was 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. In the last ninety days, insiders sold 12,086 shares of company stock valued at $2,347,160. Company insiders own 2.40% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Sequoia Financial Advisors LLC lifted its stake in shares of Generac by 5.6% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 6,417 shares of the technology company's stock valued at $1,879,000 after purchasing an additional 341 shares during the period. Tidal Investments LLC grew its stake in Generac by 94.3% in the second quarter. Tidal Investments LLC now owns 55,302 shares of the technology company's stock worth $16,193,000 after purchasing an additional 26,836 shares during the period. WINTON GROUP Ltd bought a new position in Generac in the second quarter worth $1,260,000. Engineers Gate Manager LP purchased a new position in Generac during the second quarter valued at $688,000. Finally, NorthRock Partners LLC purchased a new position in Generac during the second quarter valued at $377,000. 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: Amazon deal creates substantial future revenue visibility. Amazon agreed to purchase Generac generators, with initial deliveries expected to total approximately $2.4 billion in 2027 and 2028. The broader agreement could generate as much as $8 billion through 2033, positioning Generac as a significant supplier to the rapidly expanding AI data-center market. Generac Plugs into Amazon for an $8B AI-Powered Deal
• Positive Sentiment: The contract could materially diversify Generac beyond its weather-sensitive residential generator business. The expected 2027-2028 deliveries represent roughly $1.2 billion of annual sales, or about 28% of the company’s recent revenue base, while strengthening its commercial and industrial operations.
• Positive Sentiment: Amazon also received warrants to purchase up to approximately $340 million of Generac stock, aligning Amazon’s interests with the supplier relationship. Analysts responded favorably: Canaccord raised its price target to $375 from $275, and Stephens maintained an overweight rating with a $335 target.
• Neutral Sentiment: Recent earnings-estimate revisions and above-average trading volume may support additional momentum, although the stock’s ability to extend its advance is uncertain after the initial surge. Generac Holdings Moves Higher
• Negative Sentiment: Investors may be locking in gains after GNRC’s dramatic response to the announcement, creating short-term selling pressure. The stock now faces higher expectations and a richer valuation, leaving less room for execution missteps.
• Negative Sentiment: The agreement introduces customer concentration risk: Amazon will have considerable negotiating leverage, and margin pressure could emerge from higher copper, steel, working-capital, or manufacturing costs. Amazon’s warrants could also dilute existing shareholders by roughly 2.9% if fully vested.

Generac Company Profile

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.

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