Stephens Reaffirms Overweight Rating for Generac (NYSE:GNRC)

Key Points

• Stephens reaffirmed its Overweight rating on Generac and set a $335 price target, implying 91.1% upside from the prior close. The analyst consensus remains “Moderate Buy,” with an average target of $294.50.
• Generac reported quarterly EPS of $2.91, beating estimates of $2.01, while revenue reached $1.17 billion and rose 10.3% year over year. Shares opened at $175.31, well below their 52-week high of $296.44.
• A long-term Amazon supply agreement could generate approximately $2.4 billion in initial generator deliveries during 2027–2028, with broader payments potentially reaching $8 billion. However, the deal includes warrants for up to $340 million of Generac shares, creating potential dilution and execution risks.

Generac (NYSE:GNRC - Get Free Report)'s stock had its "overweight" rating reaffirmed by Stephens in a report released on Thursday, Benzinga reports. They currently have a $335.00 price objective on the technology company's stock. Stephens' price target indicates a potential upside of 91.10% from the company's previous close.

GNRC has been the topic of a number of other reports. HSBC cut Generac to a "hold" rating and set a $333.00 price objective on the stock. in a report on Thursday. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $333.00 price objective on shares of Generac in a research note on Wednesday. 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. Jefferies Financial Group reaffirmed a "buy" rating on shares of Generac in a research note on Thursday. Finally, UBS Group lifted their price objective on Generac from $335.00 to $340.00 and gave the stock a "buy" rating in a report on Tuesday, August 4th. Two research 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 company. Based on data from MarketBeat, Generac presently has an average rating of "Moderate Buy" and a consensus price target of $294.50.

Generac Trading Up 0.2%

Shares of GNRC opened at $175.31 on Thursday. Generac has a 1-year low of $134.80 and a 1-year high of $296.44. The company has a market capitalization of $10.34 billion, a P/E ratio of 40.39, a P/E/G ratio of 1.49 and a beta of 1.91. 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 firm's 50 day simple moving average is $203.64 and its 200 day simple moving average is $226.70.

Generac (NYSE:GNRC - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The technology company reported $2.91 EPS for the quarter, topping analysts' consensus estimates 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 net margin of 5.82% and a return on equity of 17.83%. The business's revenue for the quarter was up 10.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.65 EPS. Sell-side analysts forecast that Generac will post 9.78 earnings per share for the current fiscal year.

Insider Transactions at Generac

In other Generac news, insider Kyle Raabe sold 586 shares of the company's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $213.35, for a total transaction of $125,023.10. Following the completion of the transaction, the insider owned 10,746 shares of the company's stock, valued at $2,292,659.10. This represents a 5.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 value of $911,050.00. Following the completion of the sale, the chief executive officer 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 12,086 shares of company stock worth $2,347,160. Company insiders own 2.40% of the company's stock.

Hedge Funds Weigh In On Generac

A number of hedge funds and other institutional investors have recently made changes to their positions in GNRC. BlackRock Inc. bought a new stake in shares of Generac during the second quarter valued at approximately $1,170,960,000. Geode Capital Management LLC lifted its position in Generac by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 1,490,876 shares of the technology company's stock valued at $202,943,000 after buying an additional 6,332 shares during the period. Arrowstreet Capital Limited Partnership lifted its position in Generac by 9.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,038,493 shares of the technology company's stock valued at $202,849,000 after buying an additional 86,863 shares during the period. Bank of America Corp DE boosted its holdings in shares of Generac by 19.7% during the 1st quarter. Bank of America Corp DE now owns 742,576 shares of the technology company's stock valued at $145,047,000 after buying an additional 122,101 shares in the last quarter. Finally, Diamant Asset Management Inc. boosted its holdings in shares of Generac by 19,433.0% during the 1st quarter. Diamant Asset Management Inc. now owns 666,075 shares of the technology company's stock valued at $130,104,000 after buying an additional 662,665 shares in the last quarter. Institutional investors own 84.04% of the company's stock.

Key Stories Impacting Generac

Here are the key news stories impacting Generac this week:

• Positive Sentiment: Significant revenue opportunity: Generac expects initial generator deliveries worth approximately $2.4 billion in 2027 and 2028. Payments connected to the broader relationship could reach as much as $8 billion, providing substantial multi-year visibility and exposure to data-center infrastructure spending. Generac, Amazon strike $2.4 billion long-term generator supply deal
• Positive Sentiment: Strategic customer validation: Amazon’s commitment strengthens Generac’s position in the fast-growing market for reliable backup power for data centers and could support manufacturing utilization, future orders and investor confidence in the company’s commercial business. Generac surges on $2.4B Amazon data-center deal
• Neutral Sentiment: Amazon receives equity rights: As part of the arrangement, Amazon received warrants to purchase up to approximately $340 million of Generac shares. The warrants align Amazon’s interests with Generac’s performance, but the eventual exercise of those rights could dilute existing shareholders. Amazon obtains right to buy stock in Generac
• Negative Sentiment: Execution and concentration risks: The agreement’s longer-term value depends on Amazon’s data-center buildout, Generac’s ability to deliver at scale and the terms governing future purchases. Investors may also assess whether the sizable customer relationship increases dependence on a single large buyer and whether warrant issuance limits per-share upside.

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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