On September 30, 2023, Generac (NYSE:GNRC) saw its price objective increase by equities research analysts at Bank of America. The analysts raised the price target from $93.00 to $94.00 in a research report that was issued on Friday, according to FlyOnTheWall.
Bank of America’s revised price target suggests a potential downside of 13.75% from the stock’s previous close. Despite this decrease, NYSE GNRC opened at $108.98 on Friday. The company maintains a debt-to-equity ratio of 0.63, a current ratio of 2.43, and a quick ratio of 0.89.
Generac has a market capitalization of $6.78 billion and operates with a price-to-earnings ratio of 45.22, along with a price-to-earnings-growth ratio of 2.01 and a beta of 1.28. Its 50-day simple moving average stands at $118.72, while the 200-day simple moving average is slightly higher at $118.28.
Investors should take note that Generac has experienced fluctuating stock prices over the past year, with a 52-week low of $86.29 and a 52-week high of $186.70.
Turning our attention to institutional investments, several investors and hedge funds have recently engaged in buying and selling shares of Generac stock. For instance, Parkside Financial Bank & Trust significantly increased its position in shares by an impressive 1,066.7% during the first quarter.
Additionally, Comerica Bank acquired new stakes in Generac during the second quarter valued at around $230,000, while Zions Bancorporation N.A., owning approximately 182 shares worth $27,000 as of Q2 increased their position by an impressive 85%.
Moreover, OLD Mission Capital LLC purchased a stake worth roughly $26,000 in Generac during the fourth quarter. Ameritas Advisory Services LLC also joined the list of institutional investors by acquiring a stake valued at approximately $28,000 during the first quarter. Overall, institutional investors hold 87.59% of the company’s stock.
In its most recent quarterly earnings report released on August 2nd, 2023, Generac reported earnings per share of $1.08 for the quarter. This figure fell short of market expectations as analysts had anticipated earnings per share of $1.16, resulting in a difference of ($0.08).
Generac achieved a net margin of 4.64% and generated a return on equity of 14.23%. The company’s revenue for the quarter amounted to $1,000 million, surpassing analyst estimates of $979.51 million.
When comparing this quarter to the same period last year, Generac experienced a decline in its quarterly revenue by 22.5%. In the previous year’s corresponding quarter, the company reported significantly higher earnings per share at $2.99.
Equities research analysts predict that Generac will post earnings per share of approximately $5.41 for the current fiscal year.
In conclusion, Generac has recently been subject to an increase in its price objective by Bank of America analysts. Despite this adjustment implying a potential downside for investors, it is important to consider Generac’s strong market capitalization and consistent performance in various financial indicators such as its debt-to-equity ratio and return on equity.
Investors should also note that while institutional investors have shown mixed activity with buying and selling shares recently, they continue to hold a significant portion of the company’s stock.
Furthermore, it is worth mentioning that Generac fell slightly short of market expectations in terms of earnings per share for its most recent quarterly report but remains optimistic about future performance based on expected annual earnings per share of $5.41 for the current fiscal year.
As always, potential investors should conduct their own analysis and consider various factors when making investment decisions.
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Insider Sales and Analyst Ratings Create Perplexity for Generac’s Stock
On September 30, 2023, several research analysts provided their insights and opinions on the stock of Generac. These analysts offered various price targets and ratings, shedding light on the market’s perception of the company. The Goldman Sachs Group, for instance, reduced their price target from $154.00 to $135.00 but maintained a “buy” rating on Generac’s stock. Similarly, Canaccord Genuity Group lowered their target price from $175.00 to $140.00 while still endorsing a “buy” rating.
Argus took a more positive stance by upgrading Generac from a “hold” to a “buy” rating and setting an optimistic price objective of $155.00. Piper Sandler also expressed their confidence in the company by raising their target price from $150.00 to $155.00 and assigning it an “overweight” rating.
Nonetheless, not all analysts were optimistic about Generac’s prospects; Oppenheimer decreased their price target from $145.00 to $130.00 but maintained an “outperform” rating for the company.
In totality, out of the twenty-three analysts that evaluated Generac’s stock, three recommended selling it, seven rated it as a hold, while thirteen assigned it a buy rating. According to Bloomberg data, Generac currently has a consensus rating of “Hold” and an average target price of $143.22.
Amidst these analyst evaluations, news concerning insider trading emerged within the company as well.
On Friday, September 1st, CEO Aaron Jagdfeld sold 5,000 shares of Generac’s stock at an average price of $120.23 per share amounting to a total transaction value of $601,150. Following this sale, Jagdfeld now owns 602,690 shares in the company with an estimated value of approximately $72,461,418.70.
Another insider, EVP Rajendra Kumar Kanuru, also sold 250 shares of Generac’s stock on the same day for an average price of $120.23 per share, totaling $30,057.50. As a result, Kanuru now holds 16,118 shares in the company valued at around $1,937,867.14.
These transactions were disclosed to the Securities & Exchange Commission (SEC) and can be accessed through their official website or by following the hyperlink provided.
In addition to these sales, other insiders within Generac have sold a total of 10,500 shares of company stock during the last quarter with a combined value of $1,414,245. Currently, insiders hold approximately 2.80% of the company’s stock.
The market is buzzing with these developments surrounding Generac’s stock and its insider activities. Analyst ratings provide varying perspectives on its potential future performance, leaving investors perplexed about whether to buy or sell. Only time will reveal how this perplexity plays out for both analysts and investors alike.
