$GNRC Q3 2022 Earnings Report
$GNRC Long
Generac is a Fortune 1000 American manufacturer of backup power generation products for residential, light commercial, and industrial markets. They also have a very good history of beating the estimates with only one miss over the last four years. In the first quarter, Generac's revenue went up by 41% year over year to a record $1.14 billion. Sales grew 33%, excluding the impact of acquisitions and foreign currency exchange. Residential sales also jumped 43% and commercial and industrial sales rose 38%. As also mentioned by the CEO in the last quarter, the company "continued to experience robust and broad-based growth during the first quarter, and strong execution pushed shipments to new records". There weren’t any mentions of their record performance slowing down, however, I’m expecting their revenue to have an impact due to inflation. On a bright note, their revenue is still expected to increase by around 40% as compared to last quarter. On June 22, 2022, Spruce Point Capital Management issued a short report on Generac alleging multiple claims. Spruce Point stated, “Among other alarming findings, we find evidence to suggest a sham revenue transaction at Off Grid Energy, its recent UK acquisition acquired by Pramac’s subsidiary. Even more concerning, we find evidence that to grow its residential solar business and compete against the likes of Tesla, Generac has engaged in a shady transaction with Sunnova, a company we previously profiled for its shoddy financial reporting, which we believe may have been designed to finance its own sales. Generac has also partnered with a large solar distributor named Powerhome (now Pink Energy) which multiple undercover investigations allege has been misleading customers. Yet, Generac is still promoting the partnership, which we believe to be under FTC investigation.” On this news, Generac stock fell by $7.23, or 3.3%, during the day, to close at $212.57. Disadvantages: The allegations they are currently under could have a big influence on their stock price if it is mentioned in their report. The CEO also sold 1 million dollars worth of stocks last month. Due to high % changes in this stock, we could lose a lot of money if their report ends up being disappointing. Why this stock? They have a very good history of beating the estimates. At the same time, the only time they missed the estimates their stock fell only by around 4%. They have also been doing really well with their revenue and these records are expected to continue for this quarter as well.
Stock price history: Last week +11.55% Last month 23% last 6 months -5% Initial reaction: Short Researched reaction: Long Recent purchases of the company's stock: Aldebaran Financial Inc. raised its position in Generac by 2.7% during the 4th quarter. Aldebaran Financial Inc. now owns 1,355 shares of the technology company’s stock worth $477,000 after buying an additional 35 shares during the last quarter. Neville Rodie & Shaw Inc. increased its holdings in shares of Generac by 2.2% during the 1st quarter. Neville Rodie & Shaw Inc. now owns 1,620 shares of the technology company’s stock valued at $488,000 after purchasing an additional 35 shares in the last quarter. Profund Advisors LLC increased its holdings in shares of Generac by 4.1% during the 4th quarter. Profund Advisors LLC now owns 985 shares of the technology company’s stock valued at $347,000 after purchasing an additional 39 shares in the last quarter. IAG Wealth Partners LLC increased its holdings in shares of Generac by 40.0% during the 4th quarter. IAG Wealth Partners LLC now owns 140 shares of the technology company’s stock valued at $49,000 after purchasing an additional 40 shares in the last quarter. Finally, American National Bank increased its holdings in shares of Generac by 59.2% during the 1st quarter. American National Bank now owns 121 shares of the technology company’s stock valued at $36,000 after purchasing an additional 45 shares in the last quarter. 88.35% of the stock is currently owned by institutional investors and hedge funds.
Holder Shares Date Reported % Out Value Vanguard Group, Inc. (The) 6,770,488 Mar 30, 2022 10.61% 1,806,230,780 Blackrock Inc. 5,018,844 Mar 30, 2022 7.86% 1,338,927,196 Price (T.Rowe) Associates Inc 3,207,901 Mar 30, 2022 5.03% 855,803,824 State Street Corporation 2,494,699 Mar 30, 2022 3.91% 665,535,796 FMR, LLC 1,910,104 Mar 30, 2022 2.99% 509,577,542 Bank of America Corporation 1,437,020 Mar 30, 2022 2.25% 383,368,193 JP Morgan Chase & Company 1,376,431 Mar 30, 2022 2.16% 367,204,260 Geode Capital Management, LLC 1,203,293 Mar 30, 2022 1.89% 321,014,505 Invesco Ltd. 1,095,091 Mar 30, 2022 1.72% 292,148,375 Champlain Investment Partners, LLC 1,081,880 Mar 30, 2022 1.69% 288,623,945 Ceo: Time: Before market Estimate: +12%