Are Generac Holdings Inc. (NYSE:GNRC) Prospects Worsening?

Generac Holdings Inc. (NYSE:GNRC) Relative Strength Index (RSI) is 62.70, with weekly volatility at 4.40% and ATR at 8.29. The GNRC stock’s 52-week price range has touched low of $75.50 and a $234.55 high. Intraday shares traded counted 0.82 million, which was -0.34% lower than its 30-day average trading volume of 813.41K. Its shares traded higher over the last trading session, gaining 2.73% on 12/24/20. The shares fell to a low of $227.00 before closing at $233.20. GNRC’s previous close was $227.01 while the outstanding shares total 62.35M. The firm has a beta of 0.91, a 12-month trailing P/E ratio of 50.27, and a growth ratio of 6.28.

Investors have identified the Specialty Industrial Machinery company Generac Holdings Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $14.26 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Generac Holdings Inc. (GNRC) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For GNRC, the company has in raw cash 513.94 million on their books with 48.22 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 1.48 billion total, with 556.26 million as their total liabilities.

GNRC were able to record 234.37 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 191.06 million. In cash movements, the company had a total of 268.31 million as operating cash flow.

Potential earnings growth for Generac Holdings Inc. (GNRC)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Generac Holdings Inc. recorded a total of 701.36 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 14.29% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 22.03%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 425.21 million trying to sell their products during the last quarter, with the result yielding a gross income of 276.15 million. This allows shareholders to hold on to 62.35M with the recently reported earning now reading 1.85 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (2.08 cents a share).

Having a look at the company’s valuation, the company is expected to record 7.29 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on GNRC sounds very interesting.

Is the stock of GNRC attractive?

In related news, Chief Executive Officer, Jagdfeld Aaron sold 5,000 shares of the company’s stock in a transaction that recorded on Dec 01. The sale was performed at an average price of 214.98, for a total value of 1,074,918. As the sale deal closes, the Chief Financial Officer, Ragen York A. now sold 9,500 shares of the company’s stock, valued at 2,094,284. Also, EVP Industrial, Americas, Wilde Erik sold 3,611 shares of the company’s stock in a deal that was recorded on Nov 02. The shares were price at an average price of 210.76 per share, with a total market value of 761,048. Following this completion of acquisition, the Chief Executive Officer, Jagdfeld Aaron now holds 5,000 shares of the company’s stock, valued at 1,068,637. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.50%.

11 out of 15 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Generac Holdings Inc.. 0 analysts has assigned a Sell rating on the GNRC stock. The 12-month mean consensus price target for the company’s shares has been set at $253.00.

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