Generac (NYSE:GNRC) Stock Price Target Cut by Piper Sandler

Key Points

• Piper Sandler cut Generac’s price target to $266 from $279 but maintained its overweight rating, implying 39.47% upside from the prior close.
• Analyst sentiment remains favorable overall: MarketBeat reports a “Moderate Buy” consensus and an average price target of $289.82.
• Generac beat quarterly EPS estimates, reporting $2.54 versus $2.40 expected, while revenue of $1.29 billion fell short of forecasts; revenue nevertheless grew 16.2% year over year.

Generac (NYSE:GNRC - Get Free Report) had its target price dropped by research analysts at Piper Sandler from $279.00 to $266.00 in a research report issued on Monday, Benzinga reports. The firm currently has an "overweight" rating on the technology company's stock. Piper Sandler's target price indicates a potential upside of 39.47% from the stock's previous close.

A number of other analysts have also recently commented on the company. JPMorgan Chase & Co. lifted their target price on Generac from $261.00 to $265.00 and gave the stock an "overweight" rating in a research report on Friday, September 18th. Canaccord Genuity Group upped their target price on Generac from $275.00 to $375.00 and gave the company a "buy" rating in a research report on Thursday, September 17th. DA Davidson set a $333.00 price target on Generac in a research note on Thursday, July 30th. Citigroup raised their price target on Generac from $232.00 to $235.00 and gave the stock a "neutral" rating in a research note on Friday, October 30th. Finally, UBS Group reaffirmed a "buy" rating on shares of Generac in a research report on Friday, September 25th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $289.82.

Generac Stock Up 7.9%

NYSE:GNRC traded up $13.94 during midday trading on Monday, hitting $190.72. 332,602 shares of the company were exchanged, compared to its average volume of 1,103,556. The company has a fifty day simple moving average of $197.79 and a 200 day simple moving average of $218.22. Generac has a fifty-two week low of $134.80 and a fifty-two week high of $296.44. The company has a current ratio of 1.97, a quick ratio of 1.06 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $11.25 billion, a PE ratio of 37.73, a price-to-earnings-growth ratio of 1.50 and a beta of 1.86.

Generac (NYSE:GNRC - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The technology company reported $2.54 earnings per share for the quarter, beating analysts' consensus estimates of $2.40 by $0.14. Generac had a net margin of 6.52% and a return on equity of 18.78%. The firm had revenue of $1.29 billion during the quarter, compared to analysts' expectations of $1.32 billion. During the same period in the previous year, the company earned $1.83 earnings per share. Generac's quarterly revenue was up 16.2% compared to the same quarter last year. As a group, equities analysts anticipate that Generac will post 9.84 earnings per share for the current fiscal year.

Insider Buying and Selling at Generac

In other Generac news, CEO Aaron Jagdfeld sold 5,000 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $182.21, for a total transaction of $911,050.00. Following the completion of the sale, the chief executive officer directly owned 549,528 shares of the company's stock, valued at approximately $100,129,496.88. This trade represents a 0.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kyle Raabe sold 603 shares of the stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $212.57, for a total value of $128,179.71. Following the sale, the insider directly owned 9,966 shares of the company's stock, valued at approximately $2,118,472.62. This represents a 5.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 12,606 shares of company stock worth $2,491,310. 2.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in GNRC. BlackRock Inc. bought a new stake in Generac in the second quarter valued at about $1,170,960,000. Arrowstreet Capital Limited Partnership grew its position in shares of Generac by 9.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,038,493 shares of the technology company's stock worth $202,849,000 after acquiring an additional 86,863 shares in the last quarter. Bank of America Corp DE acquired a new position in shares of Generac in the 2nd quarter worth approximately $175,942,000. Park Presidio Capital LLC bought a new stake in shares of Generac in the 2nd quarter valued at approximately $158,140,000. Finally, Amundi increased its holdings in shares of Generac by 5.0% in the 2nd quarter. Amundi now owns 454,516 shares of the technology company's stock valued at $133,087,000 after acquiring an additional 21,500 shares during the last quarter. 84.04% of the stock is currently owned by institutional investors and hedge funds.

Generac Company Profile

Generac Holdings Inc designs and manufactures backup power generation equipment and energy technology solutions. Its products include home standby and portable generators, as well as power systems for commercial, industrial, and other applications.

The company also offers energy storage and management products, solar-related solutions, and services that help customers monitor and manage power use. Generac serves residential, commercial, and industrial customers, with a presence in North America and other markets around the world.

Founded in 1959, Generac has expanded from its generator-manufacturing roots into a broader provider of backup power and energy management technologies.

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