Zacks Investment Research Lowers Generac (NYSE:GNRC) to Sell

Zacks Investment Research downgraded shares of Generac (NYSE:GNRC) from a hold rating to a sell rating in a research note published on Wednesday morning, Zacks.com reports.

According to Zacks, “Generac Holdings Inc. is a manufacturer of backup power generation products serving residential, light commercial and industrial markets. The Company designs, engineers, manufactures, and markets a range of automatic, stationary standby, and portable generators. Generac’s power systems range in output from 800 watts to 9 megawatts and are available through a broad network of independent and industrial dealers, retailers and wholesalers. The Company offers generators fueled by natural gas, liquid propane, gasoline, diesel, and Bi-Fuel. It also provides air-cooled engines. In addition, Generac designs, manufactures, sources and modifies engines, alternators, automatic transfer switches and other components necessary for its products. The Company’s generators are fueled by natural gas, liquid propane, gasoline, diesel and Bi-Fuel (combined diesel and natural gas). Generac Holdings Inc. is headquartered in Waukesha, Wisconsin. “

Other analysts have also issued research reports about the stock. Oppenheimer upped their target price on shares of Generac from $115.00 to $120.00 and gave the stock an outperform rating in a research note on Friday, May 1st. Bank of America reduced their target price on shares of Generac from $125.00 to $105.00 and set a neutral rating for the company in a research note on Monday, March 23rd. Goldman Sachs Group reduced their price target on shares of Generac from $113.00 to $105.00 and set a neutral rating for the company in a research report on Thursday, March 19th. William Blair upgraded shares of Generac from a market perform rating to an outperform rating in a research report on Friday, March 27th. Finally, Stifel Nicolaus increased their price target on shares of Generac from $109.00 to $111.00 and gave the company a hold rating in a research report on Friday, May 1st. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and four have given a buy rating to the company. The company currently has a consensus rating of Hold and a consensus price target of $108.88.

Shares of NYSE GNRC traded down $0.04 during trading on Wednesday, hitting $114.40. The stock had a trading volume of 348,780 shares, compared to its average volume of 683,547. Generac has a 12 month low of $54.19 and a 12 month high of $118.86. The company has a debt-to-equity ratio of 0.97, a current ratio of 2.50 and a quick ratio of 1.34. The company has a market capitalization of $7.17 billion, a PE ratio of 28.89, a PEG ratio of 4.05 and a beta of 0.89. The firm has a fifty day moving average of $98.44 and a two-hundred day moving average of $100.27.

Generac (NYSE:GNRC) last posted its earnings results on Thursday, April 30th. The technology company reported $0.87 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.74 by $0.13. Generac had a net margin of 11.39% and a return on equity of 32.73%. The firm had revenue of $475.90 million during the quarter, compared to analyst estimates of $473.87 million. During the same quarter in the prior year, the business posted $0.91 EPS. The business’s revenue was up .5% compared to the same quarter last year. On average, equities analysts expect that Generac will post 4.35 earnings per share for the current fiscal year.

In other Generac news, CEO Aaron Jagdfeld sold 5,000 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $87.44, for a total transaction of $437,200.00. Following the completion of the transaction, the chief executive officer now owns 689,846 shares in the company, valued at $60,320,134.24. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CMO Russell S. Minick sold 32,686 shares of the stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $99.70, for a total transaction of $3,258,794.20. Following the transaction, the chief marketing officer now owns 14,150 shares of the company’s stock, valued at approximately $1,410,755. The disclosure for this sale can be found here. Insiders have sold 53,686 shares of company stock valued at $5,318,614 in the last quarter. Company insiders own 2.70% of the company’s stock.

Several institutional investors have recently made changes to their positions in GNRC. OmniStar Financial Group Inc. purchased a new stake in shares of Generac in the first quarter worth about $29,000. Exchange Traded Concepts LLC purchased a new stake in shares of Generac in the first quarter worth about $34,000. Harel Insurance Investments & Financial Services Ltd. purchased a new stake in shares of Generac in the fourth quarter worth about $38,000. Ninety One SA PTY Ltd purchased a new stake in shares of Generac in the first quarter worth about $38,000. Finally, Arcadia Investment Management Corp MI purchased a new stake in shares of Generac in the fourth quarter worth about $50,000. 95.00% of the stock is currently owned by hedge funds and other institutional investors.

Generac Company Profile

Generac Holdings Inc designs, manufactures, and sells power generation equipment and other power products for the residential, light commercial, and industrial markets worldwide. The company offers engines, alternators, transfer switches, and other components fueled by natural gas, liquid propane, gasoline, diesel, and bi-fuel.

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