Generac (NYSE:GNRC) Shares Down 5.8% - What's Next?

Key Points

• Generac shares dropped 5.8% to about $194.72, with trading volume below the daily average. The stock remains well below its 50-day and 200-day moving averages, both near $230.
• Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $284.84. Generac also exceeded quarterly EPS expectations, reporting $2.91 versus the $2.01 consensus, while revenue increased 10.3% year over year.
• Insiders sold 12,236 shares worth approximately $2.87 million over the past three months, while institutional investors own 84.04% of the company and several increased their positions.

Generac Holdings Inc. (NYSE:GNRC - Get Free Report)'s share price fell 5.8% during trading on Thursday . The company traded as low as $195.95 and last traded at $194.7230. 768,248 shares were traded during mid-day trading, a decline of 25% from the average session volume of 1,030,179 shares. The stock had previously closed at $206.62.

Wall Street Analyst Weigh In

Several brokerages have issued reports on GNRC. Argus boosted their target price on shares of Generac from $255.00 to $290.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Weiss Ratings raised Generac from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, August 5th. JPMorgan Chase & Co. lifted their price target on Generac from $229.00 to $267.00 and gave the company an "overweight" rating in a report on Thursday, April 30th. Wall Street Zen raised Generac from a "hold" rating to a "strong-buy" rating in a research report on Saturday, May 9th. Finally, Stifel Nicolaus increased their price objective on Generac from $275.00 to $285.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Generac has a consensus rating of "Moderate Buy" and an average target price of $284.84.

Generac Stock Performance

The company has a quick ratio of 1.00, a current ratio of 2.04 and a debt-to-equity ratio of 0.43. The stock has a market cap of $11.31 billion, a P/E ratio of 44.08, a price-to-earnings-growth ratio of 1.72 and a beta of 1.92. The firm's 50-day moving average is $229.81 and its two-hundred day moving average is $230.37.

Generac (NYSE:GNRC - Get Free Report) last posted its earnings results on Wednesday, July 29th. The technology company reported $2.91 EPS for the quarter, topping 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 5.82% and a return on equity of 17.83%. The company's revenue for the quarter was up 10.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.65 earnings per share. As a group, research analysts expect that Generac Holdings Inc. will post 9.78 EPS for the current year.

Insider Buying and Selling

In other Generac news, insider Kyle Andrew Raabe sold 586 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $213.35, for a total transaction of $125,023.10. Following the transaction, the insider directly owned 10,746 shares of the company's stock, valued at $2,292,659.10. This represents a 5.17% decrease in their ownership of the stock. 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 firm's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $194.89, for a total value of $974,450.00. Following the transaction, the chief executive officer owned 554,528 shares in the company, valued at approximately $108,071,961.92. This trade represents a 0.89% 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. Over the last three months, insiders sold 12,236 shares of company stock worth $2,871,273. Corporate insiders own 2.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in GNRC. NewEdge Advisors LLC raised its position in shares of Generac by 6.2% in the first quarter. NewEdge Advisors LLC now owns 2,439 shares of the technology company's stock valued at $309,000 after purchasing an additional 142 shares during the period. Woodline Partners LP boosted its holdings in shares of Generac by 40.9% during 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 period. First Trust Advisors LP grew its stake in Generac by 27.6% in the 2nd quarter. First Trust Advisors LP now owns 101,298 shares of the technology company's stock valued at $14,507,000 after buying an additional 21,908 shares during the last quarter. Cerity Partners LLC grew its stake in Generac by 1.6% in the 2nd quarter. Cerity Partners LLC now owns 50,550 shares of the technology company's stock valued at $7,239,000 after buying an additional 816 shares during the last quarter. Finally, California Public Employees Retirement System raised its holdings in 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 acquiring an additional 8,213 shares during the period. 84.04% of the stock is owned by institutional investors.

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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