Generac (NYSE:GNRC) Stock Rating Lowered by Wall Street Zen

Generac (NYSE:GNRC) was downgraded by investment analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a research note issued to investors on Saturday, Wall Street Zen reports.

GNRC has been the subject of a number of other reports. Jefferies Financial Group reaffirmed a “buy” rating on shares of Generac in a research report on Thursday. Roth Capital increased their price target on Generac from $214.00 to $250.00 and gave the stock a “neutral” rating in a research report on Thursday. TD Cowen restated a “buy” rating on shares of Generac in a research note on Monday, July 20th. Robert W. Baird set a $305.00 price objective on Generac in a report on Thursday, July 30th. Finally, Cantor Fitzgerald restated an “overweight” rating and issued a $333.00 price objective on shares of Generac in a report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $295.40.

Generac Trading Up 0.4%

GNRC opened at $208.18 on Friday. Generac has a one year low of $134.80 and a one year high of $296.44. The stock has a market cap of $12.28 billion, a price-to-earnings ratio of 47.97, a P/E/G ratio of 1.78 and a beta of 1.91. The stock’s 50 day moving average price is $202.55 and its 200-day moving average price is $226.43. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.00 and a current ratio of 2.04.

Generac (NYSE:GNRC) last posted its quarterly earnings results on Wednesday, July 29th. 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 5.82% and a return on equity of 17.83%. The firm had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.18 billion. During the same quarter in the previous year, the firm posted $1.65 earnings per share. The company’s revenue was up 10.3% on a year-over-year basis. On average, equities analysts forecast that Generac will post 9.74 EPS for the current year.

Insider Buying and Selling

In other Generac news, CEO Aaron Jagdfeld sold 5,000 shares of the company’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $194.89, for a total transaction of $974,450.00. Following the completion of the sale, the chief executive officer owned 554,528 shares in the company, valued at $108,071,961.92. This represents a 0.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kyle Raabe sold 603 shares of the stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $229.50, for a total value of $138,388.50. Following the sale, the insider directly owned 10,356 shares in the company, valued at $2,376,702. This trade represents a 5.50% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,839 shares of company stock valued at $2,519,973 over the last 90 days. Corporate insiders own 2.40% of the company’s stock.

Hedge Funds Weigh In On Generac

Large investors have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC grew its position in shares of Generac by 5.6% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 6,417 shares of the technology company’s stock worth $1,879,000 after buying an additional 341 shares during the last quarter. Tidal Investments LLC lifted its position in Generac by 94.3% during the second 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 stake in Generac during the second quarter valued at approximately $1,260,000. Engineers Gate Manager LP acquired a new stake in Generac in the second quarter valued at approximately $688,000. Finally, NorthRock Partners LLC acquired a new stake in Generac in the second quarter valued at approximately $377,000. 84.04% of the stock is currently owned by institutional investors.

Key Stories Impacting Generac

Here are the key news stories impacting Generac this week:

• Positive Sentiment: Generac signed a long-term agreement to supply backup generators for Amazon Web Services data centers. Initial deliveries are expected to total approximately $2.4 billion in 2027 and 2028, while the broader agreement could reach $8 billion through 2033. The contract gives Generac greater revenue visibility and expands its position in the rapidly growing data-center power market. Reuters article
• Positive Sentiment: The Amazon relationship could diversify Generac beyond seasonal residential generator demand. Analysts view the deal as evidence that the company can benefit from the power shortages and grid-connection delays affecting AI and hyperscale data-center construction. Amazon also received warrants to purchase up to roughly 1.69 million Generac shares, aligning its interests with the supplier. Generac Amazon deal article
• Positive Sentiment: Wall Street became more bullish following the announcement. JPMorgan raised its price target to $265 while maintaining an overweight rating; Canaccord lifted its target to $375 and kept a buy rating; and Stephens reaffirmed its overweight rating with a $335 target. A Seeking Alpha analysis also upgraded Generac to buy, citing a $1.6 billion data-center backlog and potential multi-year AI-related growth. Seeking Alpha analysis
• Neutral Sentiment: Two insiders, Kyle Raabe and Norman Taffe, sold shares worth approximately $138,000 and $34,000, respectively. Both transactions were executed under pre-arranged Rule 10b5-1 trading plans, and the executives retained substantial holdings, reducing the significance of the sales as a bearish signal. Investors should nevertheless monitor potential dilution from Amazon’s warrants and execution risks as Generac expands production.

About Generac

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.