Generac (NYSE:GNRC) Hits New 1-Year High After Strong Earnings

Key Points

• Generac hit a 52‑week high intraday (as high as $246.19) after reporting quarterly EPS of $1.80 vs. consensus $1.33 and revenue up 12.5% year‑over‑year.
• Several analysts raised price targets (e.g., TD Cowen to $255, Wells Fargo to $238) and MarketBeat shows a consensus rating of "Moderate Buy" with a mean target of $233.94.
• CFO York Ragen sold 24,362 shares (~$5.74M); insiders own 2.7% while institutions hold about 84.04% of the stock, and the company trades at a high valuation (PE ~93.84).

Generac Holdings Inc. (NYSE:GNRC - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $246.19 and last traded at $240.6460, with a volume of 142014 shares changing hands. The stock had previously closed at $217.12.

The technology company reported $1.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.33 by $0.47. Generac had a net margin of 3.79% and a return on equity of 14.55%. The firm's revenue for the quarter was up 12.5% compared to the same quarter last year. During the same period last year, the firm posted $1.26 earnings per share.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Wells Fargo & Company raised their target price on shares of Generac from $234.00 to $238.00 and gave the stock an "overweight" rating in a report on Thursday, March 26th. TD Cowen lifted their price objective on shares of Generac from $220.00 to $255.00 and gave the company a "buy" rating in a report on Thursday, February 12th. Weiss Ratings reiterated a "hold (c)" rating on shares of Generac in a report on Thursday, January 22nd. Citigroup decreased their price objective on shares of Generac from $237.00 to $226.00 and set a "neutral" rating for the company in a report on Tuesday, April 21st. Finally, Barclays lifted their price objective on shares of Generac from $213.00 to $228.00 and gave the company an "equal weight" rating in a report on Friday, March 27th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $233.94.

Insider Activity at Generac

In other news, CFO York A. Ragen sold 24,362 shares of the business's stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $235.61, for a total value of $5,739,930.82. Following the completion of the sale, the chief financial officer owned 137,182 shares in the company, valued at approximately $32,321,451.02. The trade was a 15.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 2.70% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of GNRC. NewEdge Advisors LLC grew its position in shares of Generac by 6.2% in the 1st quarter. NewEdge Advisors LLC now owns 2,439 shares of the technology company's stock worth $309,000 after buying an additional 142 shares during the last quarter. Woodline Partners LP grew its position in shares of Generac by 40.9% in the 1st quarter. Woodline Partners LP now owns 5,036 shares of the technology company's stock worth $638,000 after buying an additional 1,463 shares during the last quarter. First Trust Advisors LP grew its position in shares of Generac by 27.6% in the 2nd quarter. First Trust Advisors LP now owns 101,298 shares of the technology company's stock worth $14,507,000 after buying an additional 21,908 shares during the last quarter. Cerity Partners LLC grew its position in shares of Generac by 1.6% in the 2nd quarter. Cerity Partners LLC now owns 50,550 shares of the technology company's stock worth $7,239,000 after buying an additional 816 shares during the last quarter. Finally, California Public Employees Retirement System grew its position in shares of Generac by 8.6% in the 2nd quarter. California Public Employees Retirement System now owns 104,246 shares of the technology company's stock worth $14,929,000 after buying an additional 8,213 shares during the last quarter. Hedge funds and other institutional investors own 84.04% of the company's stock.

Generac Stock Performance

The company has a market cap of $14.64 billion, a PE ratio of 93.84, a P/E/G ratio of 2.18 and a beta of 1.78. The company has a current ratio of 2.03, a quick ratio of 1.00 and a debt-to-equity ratio of 0.48. The firm's 50-day simple moving average is $210.40 and its two-hundred day simple moving average is $180.65.

Generac Company Profile

Generac Holdings Inc NYSE: GNRC is a leading manufacturer of backup power generation products for residential, commercial and industrial applications. The company offers a comprehensive portfolio of standby and portable generators, transfer switches and power management systems designed to provide reliable electricity during power outages and other critical situations. With an emphasis on innovation, Generac has expanded its offerings to include clean energy technologies such as battery storage and integrated solar-plus-storage systems.

Generac's product lineup addresses a broad range of customer needs.

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