Generac Holdings Inc. (NYSE:GNRC) CEO Aaron Jagdfeld recently sold 5,000 shares of the company's common stock, according to a Form 4 filing with the Securities and Exchange Commission. The transaction, dated November 1, 2024, was executed under a 10b5-1 trading plan adopted on November 13, 2023. The shares were sold at an average price of $166.60, amounting to a total value of $833,000. Following this sale, Jagdfeld retains ownership of 557,177 shares in the company.
In other recent news, Generac Holdings reported a considerable increase in sales for the third quarter of 2024, with net sales reaching $1.17 billion, a 10% rise from the previous year. This growth was primarily driven by an uptick in power outage activity following Hurricanes Helen and Milton, leading to a 28% jump in residential product sales. Despite a decline in global commercial and industrial product sales and international sales, Generac revised its 2024 outlook upwards, expecting substantial growth in residential sales and improved gross and adjusted EBITDA margins.
Furthermore, TD Cowen affirmed its positive stance on Generac, increasing the company's price target from $172.00 to $183.00 while maintaining a Buy rating. This follows Generac's recent robust financial quarter, propelled by heightened demand due to adverse weather conditions. Generac also announced the receipt of a $50 million grant from the Department of Energy to implement microgrid solutions in California.
Analysts anticipate an increase in Generac's residential product sales in the high teens percentage and an improvement in gross margins and adjusted EBITDA margins for the full year. These recent developments highlight Generac's sustained momentum and its strategic positioning to address the ongoing demand.
InvestingPro Insights
While Generac Holdings Inc. (NYSE:GNRC) CEO Aaron Jagdfeld's recent stock sale might raise eyebrows, a closer look at the company's financials and market performance reveals a more nuanced picture. According to InvestingPro data, Generac's stock has shown remarkable strength, with a 60.99% price total return over the past year and a 26.64% return in the last six months. This robust performance aligns with an InvestingPro Tip indicating that Generac has demonstrated a strong return over the last three months.
The company's financial health appears solid, with InvestingPro data showing a revenue of $4.12 billion in the last twelve months as of Q3 2024, and a gross profit margin of 37.65%. An InvestingPro Tip highlights that Generac operates with a moderate level of debt, suggesting prudent financial management.
Despite trading at a high P/E ratio of 35.97, another InvestingPro Tip notes that Generac is trading at a low P/E ratio relative to its near-term earnings growth. This could indicate potential undervaluation, especially considering that net income is expected to grow this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Generac, providing a deeper understanding of the company's prospects and market position.
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