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

Generac Holdings Inc. (NYSE:GNRC)’s stock price gapped up before the market opened on Wednesday following a stronger than expected earnings report. 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 changing hands.

The technology company reported $2.91 earnings per share for the quarter, beating the consensus estimate of $2.01 by $0.90. Generac had a net margin of 4.37% and a return on equity of 15.45%. The firm had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.18 billion. During the same quarter in the prior year, the business earned $1.65 EPS. The company’s revenue for the quarter was up 10.3% compared to the same quarter last year.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on GNRC shares. Canaccord Genuity Group upped their price target on shares of Generac from $300.00 to $325.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. Wall Street Zen upgraded Generac from a “hold” rating to a “strong-buy” rating in a research note on Saturday, May 9th. Needham & Company LLC reaffirmed a “buy” rating on shares of Generac in a research note on Tuesday, June 2nd. Weiss Ratings cut Generac from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, July 14th. Finally, Citigroup raised their price objective on shares of Generac from $263.00 to $300.00 and gave the company a “neutral” rating in a research report on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Generac presently has a consensus rating of “Moderate Buy” and an average price target of $286.44.

Insiders Place Their Bets

In other news, insider Norman P. Taffe sold 550 shares of the firm’s stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $256.00, for a total value of $140,800.00. Following the sale, the insider directly owned 15,808 shares of the company’s stock, valued at approximately $4,046,848. This trade represents a 3.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed 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 dated 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 sold a total of 6,100 shares of company stock worth $1,651,443 over the last quarter. 2.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Hsbc Holdings PLC grew its holdings in shares of Generac by 42.8% during the 4th quarter. Hsbc Holdings PLC now owns 93,080 shares of the technology company’s stock worth $12,711,000 after purchasing an additional 27,893 shares in the last quarter. Willis Investment Counsel raised its stake in shares of Generac by 10.5% in the fourth quarter. Willis Investment Counsel now owns 143,137 shares of the technology company’s stock valued at $19,520,000 after purchasing an additional 13,553 shares in the last quarter. Needham Investment Management LLC lifted its position in Generac by 213.6% in the fourth quarter. Needham Investment Management LLC now owns 34,500 shares of the technology company’s stock worth $4,705,000 after purchasing an additional 23,500 shares during the period. BOK Financial Private Wealth Inc. bought a new position in Generac in the fourth quarter worth $699,000. Finally, Patton Fund Management Inc. acquired a new stake in Generac during the first quarter worth $3,797,000. 84.04% of the stock is owned by institutional investors.

Generac Price Performance

The stock has a market cap of $12.00 billion, a price-to-earnings ratio of 63.88, a P/E/G ratio of 1.85 and a beta of 1.89. The company has a debt-to-equity ratio of 0.47, a current ratio of 2.03 and a quick ratio of 0.99. The stock’s 50 day simple moving average is $254.18 and its two-hundred day simple moving average is $223.96.

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.