Analysts at Needham & Company LLC have initiated coverage of Generac Holdings Inc (NYSE: GNRC), issuing a buy rating and setting a price target of $211.00 for the technology company’s stock. This development, reported on Monday, adds to a series of recent ratings adjustments from various financial institutions.
In a report released on December 8, 2023, JPMorgan Chase & Co. upgraded Generac from a “neutral” rating to an “overweight” rating, establishing a price target of $200.00. Similarly, Wells Fargo & Company set a target price of $195.00 for the shares in a report published on December 19. Other analysts have shown a mixed outlook; Wall Street Zen downgraded the stock from a “buy” rating to a “hold” on September 28, while Citigroup raised its rating from “neutral” to “buy” with a price target of $207.00.
Market Performance and Analyst Sentiment
As of Monday, Generac shares opened at $156.58. Over the past year, the stock has seen fluctuations, with a low of $99.50 and a high of $203.25. The company currently holds a market capitalization of $9.19 billion and exhibits a price-to-earnings (PE) ratio of 29.83. Additionally, Generac possesses a current ratio of 2.18 and a debt-to-equity ratio of 0.51, indicating a stable financial position.
According to data from MarketBeat, Generac has garnered an average analyst rating of “Moderate Buy” with a consensus price target of $196.39. The ratings reflect a positive sentiment, with one analyst giving a “Strong Buy” rating, seventeen issuing “Buy” ratings, and four providing a “Hold” rating.
“Generac is a leader in backup power generation products, and we expect continued demand for their offerings,” stated a market analyst.
Financial Results and Insider Activity
On October 29, 2023, Generac reported its quarterly earnings, revealing an earnings per share (EPS) of $1.83, which fell short of the consensus estimate of $2.25 by $0.42. The company reported a revenue of $1.11 billion for the quarter, again below the anticipated $1.20 billion. This marked a 5.0% decline in revenue compared to the same quarter in the previous year, while the net margin stood at 6.92% with a return on equity of 17.63%.
In related news, Aaron Jagdfeld, CEO of Generac, sold 5,000 shares of the company’s stock on November 3 at an average price of $166.43, totaling approximately $832,150.00. Following the transaction, Jagdfeld retained ownership of 542,966 shares, valued at around $90.37 million. This sale represents a 0.91% reduction in his holdings, with insiders currently owning 2.70% of the stock.
Institutional Investment Trends
Recent activity among institutional investors indicates a growing interest in Generac. JPMorgan Chase & Co. increased its holdings by 2.9% in the second quarter, acquiring an additional 10,325 shares to reach a total of 361,189 shares, valued at $51.73 million. Other investors, such as Valeo Financial Advisors LLC and Acadian Asset Management LLC, have also expanded their stakes, demonstrating confidence in the company’s growth potential. Currently, institutional investors own 84.04% of Generac’s stock.
Generac Holdings Inc. specializes in manufacturing backup power generation products for residential, commercial, and industrial applications. The company has broadened its portfolio to include innovative clean energy technologies, such as battery storage and solar-plus-storage systems, catering to diverse customer needs. As the demand for reliable power solutions continues to rise, Generac is well-positioned to capitalize on market opportunities.
