Generac (NYSE:GNRC) Downgraded by Wall Street Zen to “Buy”

Wall Street Zen cut shares of Generac (NYSE:GNRC) from a strong-buy rating to a buy rating in a research report released on Saturday morning,Wall Street Zen reports.

A number of other equities analysts also recently commented on GNRC. Roth Capital raised their price objective on shares of Generac from $214.00 to $250.00 and gave the stock a “neutral” rating in a report on Thursday. Stifel Nicolaus upped their target price on shares of Generac from $275.00 to $285.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Barclays dropped their price target on shares of Generac from $285.00 to $278.00 and set an “equal weight” rating for the company in a research report on Thursday, July 30th. JPMorgan Chase & Co. raised their price target on shares of Generac from $261.00 to $265.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, Wells Fargo & Company set a $280.00 price objective on Generac in a report on Thursday. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Generac has a consensus rating of “Moderate Buy” and an average price target of $295.40.

Generac Stock Performance

GNRC opened at $208.18 on Friday. The stock has a market cap of $12.28 billion, a PE ratio of 47.97, a P/E/G ratio of 1.77 and a beta of 1.91. The company has a current ratio of 2.04, a quick ratio of 1.00 and a debt-to-equity ratio of 0.43. Generac has a 1 year low of $134.80 and a 1 year high of $296.44. The stock’s 50 day simple moving average is $202.55 and its 200-day simple moving average is $226.45.

Generac (NYSE:GNRC) last issued its earnings results on Wednesday, July 29th. The technology company reported $2.91 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts’ expectations of $1.18 billion. During the same period last year, the business earned $1.65 earnings per share. Generac’s quarterly revenue was up 10.3% compared to the same quarter last year. Sell-side 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 Generac stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $182.21, for a total value of $911,050.00. Following the completion of the transaction, the chief executive officer owned 549,528 shares in the company, valued at approximately $100,129,496.88. The trade was a 0.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kyle Raabe sold 603 shares of the business’s stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $229.50, for a total value of $138,388.50. Following the completion of the transaction, the insider directly owned 10,356 shares in the company, valued at approximately $2,376,702. This represents a 5.50% 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 have sold a total of 12,839 shares of company stock worth $2,519,973 in the last three months. Insiders own 2.40% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new stake in Generac during the 2nd quarter worth about $1,170,960,000. Geode Capital Management LLC raised its stake in shares of Generac by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 1,490,876 shares of the technology company’s stock worth $202,943,000 after acquiring an additional 6,332 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of Generac by 9.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,038,493 shares of the technology company’s stock worth $202,849,000 after acquiring an additional 86,863 shares during the last quarter. Bank of America Corp DE lifted its position in shares of Generac by 19.7% during the first quarter. Bank of America Corp DE now owns 742,576 shares of the technology company’s stock worth $145,047,000 after purchasing an additional 122,101 shares in the last quarter. Finally, Diamant Asset Management Inc. lifted its position in shares of Generac by 19,433.0% during the first quarter. Diamant Asset Management Inc. now owns 666,075 shares of the technology company’s stock worth $130,104,000 after purchasing an additional 662,665 shares in the last quarter. 84.04% of the stock is owned by institutional investors.

Generac News Summary

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.