Generac (NYSE:GNRC) Stock Price Down 10.3% - What's Next?

Key Points

• Generac shares fell 10.3% in mid-day trading, dropping from a prior close of $257.81 to as low as $230.00. Trading volume was about half the usual level, with roughly 511,870 shares changing hands.
• Analysts remain broadly positive on the stock despite the pullback. Generac has a consensus rating of “Moderate Buy” with an average price target of $284.18, and several firms recently raised targets, including UBS to $335.00 and Citigroup to $300.00.
• The company recently reported strong quarterly results, with EPS of $1.80 beating estimates and revenue of $1.06 billion slightly ahead of expectations. Insiders also sold shares in pre-arranged 10b5-1 transactions, while institutional ownership remains high at 84.04%.

Generac Holdings Inc. (NYSE:GNRC - Get Free Report) shares dropped 10.3% during mid-day trading on Tuesday . The stock traded as low as $230.00 and last traded at $231.2730. Approximately 511,870 shares traded hands during mid-day trading, a decline of 50% from the average session volume of 1,022,328 shares. The stock had previously closed at $257.81.

Analysts Set New Price Targets

Several brokerages have recently commented on GNRC. Citigroup raised their price objective on shares of Generac from $263.00 to $300.00 and gave the stock a "neutral" rating in a research report on Thursday, July 2nd. Roth Capital reiterated a "neutral" rating and set a $257.00 target price on shares of Generac in a research report on Thursday, April 30th. UBS Group increased their target price on shares of Generac from $305.00 to $335.00 and gave the stock a "buy" rating in a research note on Thursday, June 11th. Argus raised their price target on shares of Generac from $255.00 to $290.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. Finally, Wells Fargo & Company lifted their price target on shares of Generac from $238.00 to $280.00 and gave the company an "overweight" rating in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, Generac has a consensus rating of "Moderate Buy" and a consensus target price of $284.18.

Generac Stock Performance

The stock has a market cap of $13.69 billion, a P/E ratio of 72.72, a P/E/G ratio of 2.36 and a beta of 1.89. The company has a fifty day moving average price of $265.87 and a 200 day moving average price of $215.17. The company has a debt-to-equity ratio of 0.47, a current ratio of 2.03 and a quick ratio of 0.99.

Generac (NYSE:GNRC - Get Free Report) last issued its earnings results on Wednesday, April 29th. The technology company reported $1.80 earnings per share (EPS) for the quarter, topping 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 company had revenue of $1.06 billion for the quarter, compared to analysts' expectations of $1.05 billion. During the same period last year, the business earned $1.26 EPS. Generac's quarterly revenue was up 12.5% compared to the same quarter last year. On average, equities analysts expect that Generac Holdings Inc. will post 8.91 EPS for the current year.

Insiders Place Their Bets

In other Generac news, CEO Aaron Jagdfeld sold 5,000 shares of the firm's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $272.18, for a total value of $1,360,900.00. Following the transaction, the chief executive officer directly owned 564,528 shares of the company's stock, valued at approximately $153,653,231.04. This trade represents a 0.88% decrease in their ownership of the stock. The transaction was disclosed in a 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, insider Norman P. Taffe sold 550 shares of Generac stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $272.26, for a total transaction of $149,743.00. Following the transaction, the insider owned 16,108 shares of the company's stock, valued at $4,385,564.08. This represents a 3.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.40% of the stock is currently owned by company insiders.

Institutional Trading of Generac

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. DAVENPORT & Co LLC lifted its stake in Generac by 4.4% in the fourth quarter. DAVENPORT & Co LLC now owns 387,082 shares of the technology company's stock valued at $53,190,000 after purchasing an additional 16,229 shares during the last quarter. Private Advisory Group LLC increased its position in Generac by 26.2% in the fourth quarter. Private Advisory Group LLC now owns 58,781 shares of the technology company's stock worth $8,016,000 after buying an additional 12,191 shares during the last quarter. Lighthouse Investment Partners LLC increased its position in Generac by 556.7% in the third quarter. Lighthouse Investment Partners LLC now owns 51,903 shares of the technology company's stock worth $8,689,000 after buying an additional 43,999 shares during the last quarter. Altman Advisors Inc. bought a new stake in shares of Generac in the third quarter valued at $1,807,000. Finally, Willis Investment Counsel lifted its position in shares of Generac by 10.5% during the 4th quarter. Willis Investment Counsel now owns 143,137 shares of the technology company's stock valued at $19,520,000 after buying an additional 13,553 shares during the last quarter. 84.04% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.