Generac (NYSE:GNRC) Shares Down 4.6% - Here's What Happened

Key Points

• Generac Holdings Inc. (NYSE:GNRC) shares dropped by 4.6% to $177.25, with trading volume falling significantly to 459,680 shares, indicating reduced investor activity.
• Analysts have mixed ratings on the stock, with TD Cowen raising the price target to $198.00 while a consensus rating remains a Moderate Buy with a target of $180.78.
• The company reported better-than-expected earnings of $1.65 per share, exceeding forecasts of $1.33, alongside revenue growth of 6.3% year-over-year, totaling $1.06 billion for the quarter.

Generac Holdings Inc. (NYSE:GNRC - Get Free Report) traded down 4.6% on Tuesday . The stock traded as low as $177.65 and last traded at $177.25. 459,680 shares were traded during mid-day trading, a decline of 50% from the average session volume of 928,268 shares. The stock had previously closed at $185.86.

Analyst Upgrades and Downgrades

GNRC has been the subject of several research reports. TD Cowen boosted their price target on Generac from $155.00 to $198.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Stephens restated an "overweight" rating and set a $175.00 price target on shares of Generac in a research note on Tuesday, May 27th. Roth Capital increased their target price on Generac from $122.00 to $140.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. JPMorgan Chase & Co. lifted their target price on Generac from $165.00 to $180.00 and gave the company a "neutral" rating in a research note on Friday. Finally, Barclays set a $200.00 target price on Generac and gave the stock an "equal weight" rating in a research report on Wednesday, July 30th. Twelve analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $180.78.

Generac Price Performance

The firm has a market capitalization of $9.78 billion, a price-to-earnings ratio of 27.68, a P/E/G ratio of 1.46 and a beta of 1.63. The company's 50 day moving average is $180.97 and its 200-day moving average is $145.48. The company has a current ratio of 2.00, a quick ratio of 0.88 and a debt-to-equity ratio of 0.50.

Generac (NYSE:GNRC - Get Free Report) last issued its earnings results on Wednesday, July 30th. The technology company reported $1.65 earnings per share for the quarter, beating analysts' consensus estimates of $1.33 by $0.32. Generac had a net margin of 7.91% and a return on equity of 19.14%. The firm had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.03 billion. During the same quarter last year, the business posted $1.35 earnings per share. The company's quarterly revenue was up 6.3% on a year-over-year basis. Generac has set its FY 2025 guidance at EPS. Equities research analysts anticipate that Generac Holdings Inc. will post 8 earnings per share for the current year.

Insider Buying and Selling at Generac

In related news, CEO Aaron Jagdfeld sold 5,000 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $181.21, for a total transaction of $906,050.00. Following the completion of the sale, the chief executive officer directly owned 552,966 shares in the company, valued at approximately $100,202,968.86. The trade was a 0.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 2.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Generac

Institutional investors and hedge funds have recently bought and sold shares of the company. Invesco Ltd. increased its stake in Generac by 40.9% during the 2nd quarter. Invesco Ltd. now owns 1,992,447 shares of the technology company's stock worth $285,338,000 after buying an additional 577,933 shares during the period. Norges Bank purchased a new stake in Generac in the second quarter valued at approximately $53,138,000. Federated Hermes Inc. lifted its position in Generac by 63.5% during the second quarter. Federated Hermes Inc. now owns 749,347 shares of the technology company's stock valued at $107,314,000 after buying an additional 291,012 shares in the last quarter. Holocene Advisors LP lifted its position in shares of Generac by 346.6% during the second quarter. Holocene Advisors LP now owns 356,623 shares of the technology company's stock worth $51,072,000 after purchasing an additional 276,775 shares in the last quarter. Finally, Merewether Investment Management LP acquired a new stake in Generac in the second quarter valued at $38,079,000. 84.04% of the stock is currently owned by institutional investors and hedge funds.

About Generac

Generac Holdings Inc designs, manufactures, and distributes various energy technology products and solution worldwide. The company offers residential automatic standby generators, automatic transfer switch, air-cooled engine residential standby generators, and liquid-cooled engine generators; Mobile Link, a remote monitoring system for home standby generators; residential storage solution, which consists of a system of batteries, an inverter, photovoltaic optimizers, power electronic controls, and other components; smart home solutions, such as smart thermostats and a suite of home monitoring products.

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