Generac (NYSE:GNRC) Hits New 1-Year High - Here's Why

Key Points

• Generac reached a new 52-week high, trading as high as $296 and closing near $293, reflecting strong recent momentum in the stock.
• Recent analyst sentiment remains constructive overall, with a consensus “Moderate Buy” rating and an average price target of $278.65, even though a few firms trimmed targets or downgraded the stock.
• The company’s latest quarterly results topped expectations, with EPS of $1.80 versus $1.33 expected and revenue up 12.5% year over year to $1.06 billion.

Generac Holdings Inc. (NYSE:GNRC - Get Free Report) reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $296.00 and last traded at $293.1860, with a volume of 205683 shares. The stock had previously closed at $279.15.

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Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on GNRC shares. Bank of America reduced their price target on shares of Generac from $260.00 to $248.00 and set a "buy" rating for the company in a research report on Thursday, March 26th. Stifel Nicolaus set a $275.00 price objective on Generac in a research note on Thursday, April 30th. Zacks Research lowered Generac from a "strong-buy" rating to a "hold" rating in a research note on Thursday, June 4th. Barclays raised their price target on Generac from $213.00 to $228.00 and gave the company an "equal weight" rating in a report on Friday, March 27th. Finally, Stephens reiterated an "overweight" rating and set a $290.00 price target on shares of Generac in a research report on Thursday, May 21st. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $278.65.

Generac Price Performance

The firm's 50-day moving average is $251.44 and its 200-day moving average is $206.26. The company has a market capitalization of $17.27 billion, a PE ratio of 91.84, a price-to-earnings-growth ratio of 2.61 and a beta of 1.93. The company has a quick ratio of 0.99, a current ratio of 2.03 and a debt-to-equity ratio of 0.47.

Generac (NYSE:GNRC - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The technology company reported $1.80 earnings per share for the quarter, beating analysts' consensus estimates of $1.33 by $0.47. Generac had a return on equity of 15.45% and a net margin of 4.37%.The business had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.05 billion. During the same quarter last year, the business posted $1.26 earnings per share. The company's revenue for the quarter was up 12.5% on a year-over-year basis. Equities analysts predict that Generac Holdings Inc. will post 8.91 earnings per share for the current fiscal year.

Insider Transactions at Generac

In related news, insider Norman P. Taffe sold 550 shares of the business's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $272.26, for a total value of $149,743.00. Following the completion of the sale, the insider owned 16,108 shares in the company, valued at $4,385,564.08. The trade was a 3.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through 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 company's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $272.18, for a total value of $1,360,900.00. Following the completion of the sale, the chief executive officer directly owned 564,528 shares of the company's stock, valued at approximately $153,653,231.04. This represents a 0.88% decrease in their position. 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. Company insiders own 2.40% of the company's stock.

Hedge Funds Weigh In On Generac

Several institutional investors and hedge funds have recently made changes to their positions in GNRC. Nicollet Investment Management Inc. raised its stake in Generac by 0.7% during the 4th quarter. Nicollet Investment Management Inc. now owns 7,734 shares of the technology company's stock valued at $1,055,000 after acquiring an additional 50 shares during the last quarter. Gen Wealth Partners Inc lifted its holdings in shares of Generac by 8.7% during the fourth quarter. Gen Wealth Partners Inc now owns 675 shares of the technology company's stock worth $92,000 after purchasing an additional 54 shares during the period. Root Financial Partners LLC grew its position in Generac by 32.9% in the 1st quarter. Root Financial Partners LLC now owns 218 shares of the technology company's stock valued at $43,000 after buying an additional 54 shares during the last quarter. Meridian Financial Partners LLC increased its stake in Generac by 0.6% in the 4th quarter. Meridian Financial Partners LLC now owns 10,056 shares of the technology company's stock valued at $1,371,000 after buying an additional 61 shares during the period. Finally, Essential Partners LLC increased its stake in Generac by 57.0% in the 1st quarter. Essential Partners LLC now owns 168 shares of the technology company's stock valued at $33,000 after buying an additional 61 shares during the period. Institutional investors own 84.04% of the company's stock.

About Generac

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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