Generac Holdings Inc. (NYSE:GNRC) CEO Aaron Jagdfeld has sold 5,000 shares of company stock, totaling over $790,000, according to a recent SEC filing. The transaction took place on October 1, with shares sold at a price of $158.93 each.
This sale comes under the executive's pre-arranged 10b5-1 trading plan, which was adopted on November 13, 2023. Such plans allow company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, providing a defense against potential allegations of insider trading.
After the sale, Jagdfeld still holds a substantial amount of Generac stock, with 562,177 shares remaining in his direct ownership. Generac, known for its design and manufacture of power generation equipment and other engine-powered products, has seen its stock price fluctuate in recent months, reflecting the broader market's volatility.
Investors often monitor insider sales for signals about executives' confidence in their company's prospects, although such transactions can also be motivated by personal financial planning and diversification strategies.
The filing was signed by attorney-in-fact Raj Kanuru, indicating that he executed the transaction on behalf of Jagdfeld. Generac Holdings Inc., headquartered in Waukesha, Wisconsin, has not issued any public statement regarding this latest stock sale by its CEO.
In other recent news, Generac Holdings maintained steady net sales of $998 million in the second quarter of 2024, mirroring the previous year's figures. This was achieved despite a 10% decline in Global Commercial & Industrial product sales, offset by an 8% growth in residential product sales. The company's gross profit margin improved to 37.6%, and adjusted EBITDA for the quarter was reported at $165 million.
Generac has also completed the acquisition of Ageto, a firm recognized for its advanced microgrid controllers, enhancing Generac's commercial and industrial sector offerings. Analysts from Canaccord Genuity and Piper Sandler have maintained their Buy and Overweight ratings on Generac, respectively, citing recent developments such as increased demand following power outage events and a $35 million minority investment in Wallbox (NYSE:WBX) to expand its electric vehicle charging solutions.
These recent developments underscore Generac's resilience and growth potential in the face of evolving market conditions. The company's efforts to expand its product portfolio, coupled with strategic acquisitions and partnerships, reflect its commitment to meeting the diverse energy needs of its clientele.
InvestingPro Insights
Adding depth to the recent insider transaction at Generac Holdings Inc. (NYSE:GNRC), InvestingPro data reveals some intriguing financial metrics that provide context to the company's current position. As of the last twelve months ending Q2 2024, Generac reported a revenue of $4.02 billion, with a gross profit margin of 36.21%. Despite a slight revenue decline of 0.1% over this period, the company maintained profitability with an operating income of $426.31 million.
Notably, Generac's stock has shown strong performance recently, with a 15.2% price return over the past three months and an impressive 49.08% return over the past year. This positive momentum aligns with an InvestingPro Tip indicating that Generac has demonstrated a "Strong return over the last three months."
Another relevant InvestingPro Tip highlights that 16 analysts have revised their earnings upwards for the upcoming period, suggesting a potentially optimistic outlook for the company's near-term financial performance. This could be particularly interesting for investors considering the recent insider sale by CEO Aaron Jagdfeld.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Generac, providing a deeper understanding of the company's financial health and market position.
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