Generac (NYSE:GNRC) Shares Gap Up Following Analyst Upgrade

Key Points

• Generac shares jumped 20.2% after Canaccord Genuity raised its price target from $275 to $375 and maintained a “buy” rating; the stock opened at $229.50 versus a prior close of $175.11.
• Analyst sentiment remains favorable, with Generac receiving a “Moderate Buy” consensus rating and an average price target of $293.70 from MarketBeat-tracked analysts.
• A long-term Amazon generator-supply agreement could provide about $2.4 billion in deliveries during 2027–2028 and as much as $8 billion overall, although potential stock dilution and execution risks remain.

Generac Holdings Inc. (NYSE:GNRC - Get Free Report)'s stock price gapped up before the market opened on Thursday after Canaccord Genuity Group raised their price target on the stock from $275.00 to $375.00. The stock had previously closed at $175.11, but opened at $229.50. Canaccord Genuity Group currently has a buy rating on the stock. Generac shares last traded at $209.9990, with a volume of 1,906,012 shares.

GNRC has been the subject of several other research reports. UBS Group raised their price objective on shares of Generac from $335.00 to $340.00 and gave the company a "buy" rating in a research note on Tuesday, August 4th. Barclays decreased their target price on Generac from $285.00 to $278.00 and set an "equal weight" rating for the company in a research note on Thursday, July 30th. Zacks Research upgraded shares of Generac from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 31st. Robert W. Baird set a $305.00 price objective on Generac in a report on Thursday, July 30th. Finally, TD Cowen reaffirmed a "buy" rating on shares of Generac in a report on Monday, July 20th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $293.70.

Insider Activity at Generac

In other Generac news, insider Norman P. Taffe sold 400 shares of the stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $188.70, for a total value of $75,480.00. Following the completion of the transaction, the insider directly owned 11,276 shares of the company's stock, valued at approximately $2,127,781.20. This trade represents a 3.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible 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 Generac stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $182.21, for a total transaction of $911,050.00. Following the sale, the chief executive officer owned 549,528 shares of the company's stock, valued at approximately $100,129,496.88. The trade was a 0.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,086 shares of company stock worth $2,347,160 over the last 90 days. Company insiders own 2.40% of the company's stock.

Trending Headlines about Generac

Here are the key news stories impacting Generac this week:

• Positive Sentiment: Amazon deal creates substantial revenue visibility: Generac signed a long-term agreement to supply backup generators for Amazon data centers, with initial deliveries expected to total approximately $2.4 billion in 2027 and 2028. The broader relationship could generate as much as $8 billion in payments, providing a major boost to Generac’s backlog and data-center exposure. Generac and Amazon strike $2.4 billion long-term generator supply deal
• Positive Sentiment: Analysts raised their expectations: Canaccord Genuity increased its price target from $275 to $375 and assigned a “buy” rating, while Stephens reaffirmed its “overweight” rating with a $335 target. The revisions indicate expectations for meaningful earnings upside from Amazon-related demand. Why Generac shares are trading higher
• Positive Sentiment: Exposure to AI infrastructure demand is strengthening: The agreement positions Generac as a supplier to Amazon’s expanding data-center network, reinforcing the investment case that rising power needs and grid constraints can drive growth in backup-generation equipment. Generac analysts see earnings upside from Amazon deal
• Negative Sentiment: Contract economics include potential dilution and execution risks: Amazon received warrants to purchase up to approximately $340 million of Generac stock. Investors may view the potential equity issuance as dilutive, while the deal’s long delivery timeline and greater customer concentration create execution risks. Amazon obtains right to buy Generac stock

Institutional Trading of Generac

Large investors have recently bought and sold shares of the company. Sequoia Financial Advisors LLC increased its position in shares of Generac by 5.6% in the second quarter. Sequoia Financial Advisors LLC now owns 6,417 shares of the technology company's stock valued at $1,879,000 after buying an additional 341 shares in the last quarter. Tidal Investments LLC grew its stake in Generac by 94.3% in the 2nd quarter. Tidal Investments LLC now owns 55,302 shares of the technology company's stock valued at $16,193,000 after acquiring an additional 26,836 shares during the last quarter. WINTON GROUP Ltd purchased a new position in Generac during the 2nd quarter valued at about $1,260,000. Engineers Gate Manager LP purchased a new position in Generac during the 2nd quarter valued at about $688,000. Finally, NorthRock Partners LLC acquired a new position in Generac during the second quarter worth about $377,000. Institutional investors and hedge funds own 84.04% of the company's stock.

Generac Trading Up 20.2%

The company has a market cap of $12.42 billion, a price-to-earnings ratio of 48.48, a PEG ratio of 1.49 and a beta of 1.91. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.04 and a quick ratio of 1.00. The business's 50-day simple moving average is $203.64 and its 200-day simple moving average is $226.70.

Generac (NYSE:GNRC - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The technology company reported $2.91 EPS for the quarter, beating the consensus estimate of $2.01 by $0.90. The business had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.18 billion. Generac had a net margin of 5.82% and a return on equity of 17.83%. The company's quarterly revenue was up 10.3% on a year-over-year basis. During the same period in the prior year, the business earned $1.65 earnings per share. Research analysts predict that Generac Holdings Inc. will post 9.78 earnings per share for the current fiscal year.

Generac Company Profile

Generac Holdings Inc is an energy technology company that designs and manufactures power generation and energy management products. Its portfolio includes residential standby generators, portable generators, commercial and industrial generator systems, and related transfer switches, controls and monitoring technologies.

The company also offers clean energy and electrification solutions, including battery energy storage systems, solar-related products, electric vehicle chargers and load-management technologies.

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