Generac (NYSE:GNRC) Shares Down 5.8% – Should You Sell?

Shares of Generac Holdings Inc. (NYSE:GNRC) dropped 5.8% during mid-day trading on Thursday . The stock traded as low as $195.95 and last traded at $194.7230. Approximately 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.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on GNRC shares. Wells Fargo & Company increased their price objective on Generac from $238.00 to $280.00 and gave the company an “overweight” rating in a research report on Friday, May 1st. Wall Street Zen raised shares of Generac from a “hold” rating to a “strong-buy” rating in a research report on Saturday, May 9th. Raymond James Financial set a $302.00 price target on Generac in a research note on Friday, May 22nd. Robert W. Baird set a $305.00 price objective on shares of Generac in a research note on Thursday, July 30th. Finally, Canaccord Genuity Group decreased their price target on shares of Generac from $325.00 to $275.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Generac presently has a consensus rating of “Moderate Buy” and an average target price of $284.84.

Generac Price Performance

The stock has a market capitalization of $10.86 billion, a PE ratio of 42.40, a PEG ratio of 1.68 and a beta of 1.92. The company has a current ratio of 2.04, a quick ratio of 1.00 and a debt-to-equity ratio of 0.43. The firm’s 50-day moving average price is $226.30 and its 200-day moving average price is $230.15.

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

Insider Buying and Selling at Generac

In other Generac news, insider Norman P. Taffe sold 550 shares of the company’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $218.83, for a total value of $120,356.50. Following the transaction, the insider directly owned 15,508 shares in the company, valued at $3,393,615.64. This represents a 3.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kyle Andrew Raabe sold 586 shares of Generac stock in a transaction that occurred 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 sale, 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 position. 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 12,236 shares of company stock valued at $2,871,273 in the last three months. Company insiders own 2.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. California State Teachers Retirement System lifted its position in shares of Generac by 29,322.7% in the 2nd quarter. California State Teachers Retirement System now owns 19,945,924 shares of the technology company’s stock worth $5,840,366,000 after purchasing an additional 19,878,133 shares during the period. BlackRock Inc. purchased a new position in Generac during the second quarter valued at approximately $1,170,960,000. Invesco Ltd. raised its stake in Generac by 49.9% in the fourth quarter. Invesco Ltd. now owns 2,423,971 shares of the technology company’s stock worth $330,557,000 after buying an additional 806,430 shares in the last quarter. Diamant Asset Management Inc. raised its stake in Generac by 19,433.0% in the first quarter. Diamant Asset Management Inc. now owns 666,075 shares of the technology company’s stock worth $130,104,000 after buying an additional 662,665 shares in the last quarter. Finally, Bank of Montreal Can lifted its holdings in Generac by 1,141.1% during the fourth quarter. Bank of Montreal Can now owns 695,600 shares of the technology company’s stock worth $94,859,000 after buying an additional 639,551 shares during the period. 84.04% of the stock is currently 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.