Generac (NYSE:GNRC) Shares Gap Up After Earnings Beat

Key Points

• Generac shares jumped after a quarterly earnings beat: The company reported EPS of $2.91, exceeding the $2.01 consensus estimate, while revenue rose 10.3% year over year to $1.17 billion, slightly below expectations.
• Analysts remain broadly positive: Generac has a “Moderate Buy” consensus rating and an average price target of $286.44, with several firms recently raising their targets.
• Insiders have recently sold shares, while institutional ownership remains high: Insiders sold 6,100 shares worth about $1.65 million over the past 90 days, while institutional investors and hedge funds own 84.04% of the stock.

Generac Holdings Inc. (NYSE:GNRC - Get Free Report)'s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $195.60, but opened at $210.00. Generac shares last traded at $202.2370, with a volume of 375,250 shares.

The technology company reported $2.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.01 by $0.90. The company had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.18 billion. Generac had a net margin of 4.37% and a return on equity of 15.45%. The company's revenue for the quarter was up 10.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.65 earnings per share.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Jefferies Financial Group reaffirmed a "buy" rating on shares of Generac in a report on Wednesday, June 3rd. Canaccord Genuity Group raised their target price on shares of Generac from $300.00 to $325.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Stifel Nicolaus set a $275.00 price target on shares of Generac in a research report on Thursday, April 30th. JPMorgan Chase & Co. upped their price target on shares of Generac from $229.00 to $267.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. Finally, Wall Street Zen upgraded shares of Generac from a "hold" rating to a "strong-buy" rating in a report on Saturday, May 9th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $286.44.

Insider Buying and Selling

In other news, insider Norman P. Taffe sold 550 shares of the stock in a transaction on Monday, July 6th. The stock was sold at an average price of $256.00, for a total transaction of $140,800.00. Following the completion of the sale, the insider owned 15,808 shares in the company, valued at approximately $4,046,848. This represents a 3.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Aaron Jagdfeld sold 5,000 shares of Generac stock in a transaction 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 transaction, the chief executive officer owned 564,528 shares in the company, valued at $153,653,231.04. The trade was a 0.88% 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. Insiders have sold 6,100 shares of company stock valued at $1,651,443 over the last 90 days. 2.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. 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 purchasing an additional 50 shares during the period. Root Financial Partners LLC boosted its position in shares of Generac by 32.9% in the first quarter. Root Financial Partners LLC now owns 218 shares of the technology company's stock worth $43,000 after buying an additional 54 shares during the period. Gen Wealth Partners Inc boosted its position in shares of Generac by 8.7% in the fourth quarter. Gen Wealth Partners Inc now owns 675 shares of the technology company's stock worth $92,000 after buying an additional 54 shares during the period. Meridian Financial Partners LLC grew its holdings in shares of Generac by 0.6% during the fourth 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 in the last quarter. Finally, Essential Partners LLC lifted its stake in Generac by 57.0% in the 1st quarter. Essential Partners LLC now owns 168 shares of the technology company's stock worth $33,000 after acquiring an additional 61 shares in the last quarter. 84.04% of the stock is currently owned by institutional investors and hedge funds.

Generac Price Performance

The company has a current ratio of 2.03, a quick ratio of 0.99 and a debt-to-equity ratio of 0.47. The stock has a 50-day simple moving average of $254.18 and a 200 day simple moving average of $223.96. The stock has a market capitalization of $12.00 billion, a price-to-earnings ratio of 63.88, a price-to-earnings-growth ratio of 1.85 and a beta of 1.89.

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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