Possible Explanations for Why Generac Holdings Inc. (GNRC) Trades Today Down -2.28%

An interesting stock that came up in some of our conversations today is Generac Holdings Inc. (NYSE:GNRC). At current price of $113.11, the shares have already lost -2.64 points (-2.28% lower) from its previous close of $115.75. Should you buy or avoid them? The stock sets an active trading volume day with a reported 607739 contracts so far this session. GNRC shares had a relatively better volume day versus average trading capacity of 822.3 thousand shares, but with a 61.49 million float and a 12.47% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for GNRC stock indicates that the average analyst price target is $107.71 per share. This means the stock has a potential decrease of -4.77% from where the GNRC share price has been trading recently.

During the recent trading session for Generac Holdings Inc. (NYSE:GNRC), the company witnessed their stock rise $11.33 over a week and surge $8.76 from the price 20 days ago. When compared to their established 52-week high of $117.83, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 02/14/20. The recent low of $49.41 stood for a -3.69% since 03/25/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.09 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Generac Holdings Inc., the two-week RSI stands at 64.06. This figure suggests that GNRC stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current GNRC readings is similarly very revealing as it has a stochastic reading of 84.88% at this stage. This figure means that GNRC share price today is being oversold.

Technical chart claims that Generac Holdings Inc. (GNRC) would settle between $118.03/share to $120.31/share level. However, if the stock price goes below the $112.88 mark, then the market for Generac Holdings Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $110.01 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 5.79. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Oppenheimer raised their recommendation on shares of GNRC from Perform to Outperform in their opinion released on January 24. BofA/Merrill analysts have lowered their rating of Generac Holdings Inc. (NYSE:GNRC) stock from Buy to Neutral in a separate flash note issued to investors on November 01. Analysts at Canaccord Genuity are sticking to their Hold stance. However, on September 06, they lifted price target for these shares to $80 from $74.

GNRC equity has an average rating of 2.5, with the figure leaning towards a bullish end. 10 analysts who tracked the company were contacted by Reuters. Amongst them, 6 rated the stock as a hold while the remaining 4 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 4 analysts rated Generac Holdings Inc. (NYSE:GNRC) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, GNRC stock price is currently trading at 21.94X forward 12-month Consensus EPS estimates, and its P/E ratio is 28.1 while for the average stock in the same group, the multiple is 30.6. Generac Holdings Inc. current P/B ratio of 7.7 means it is trading at a premium against its industry’s 5.

Generac Holdings Inc. (GNRC)’s current-quarter revenues are projected to climb by nearly 6.2% to hit $499620, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over 7.6% from $2.2 billion to a noteworthy $2.37 billion. At the other end of the current quarter income statement, Generac Holdings Inc. is expected to see its adjusted earnings surge by roughly -4.4% to hit $0.87 per share. For the fiscal year, GNRC’s earnings are projected to climb by roughly 4.2% to hit $5.27 per share.