Generac Holdings Inc. (NYSE:GNRC) Chief Executive Officer Aaron Jagdfeld has sold 5,000 shares of company stock, according to a recent SEC filing. The transaction, which took place on May 1st, was executed at a price of $139.95 per share, amounting to a total value of $699,750.
The sale was part of a pre-arranged 10b5-1 trading plan, a tool that allows insiders to set up a predetermined schedule for buying or selling stocks at a future date, which in this case had been adopted on November 13, 2023. Such plans are used by insiders to avoid accusations of trading on nonpublic information, as they demonstrate that the trades were planned ahead of time and not in response to recent developments.
Following the transaction, CEO Jagdfeld's direct holdings in Generac Holdings have decreased, yet he still retains 587,177 shares, indicating a continued significant investment in the company's future. The sale represents a small fraction of his overall stake in the firm, which is a leading manufacturer in motors and generators.
Generac Holdings Inc., headquartered in Waukesha, Wisconsin, has been a prominent player in the power generation equipment market. Despite the CEO's sale, his substantial remaining ownership can be seen as a sign of confidence in the company's long-term prospects.
Investors often monitor insider transactions for hints about executives' outlook on their company's stock. While a sale might prompt questions about the company's health, it is not uncommon for executives to liquidate portions of their holdings for personal financial management reasons.
The details of the transaction were formally filed with the SEC on May 3rd, and are publicly accessible for review by investors and regulators.
InvestingPro Insights
In light of the recent sale of Generac Holdings Inc. (NYSE:GNRC) stock by CEO Aaron Jagdfeld, investors may be interested in some of the latest metrics and analyst insights provided by InvestingPro. As of the last twelve months ending Q1 2024, Generac's market capitalization stands at $8.07 billion, reflecting the company's position in the power generation equipment market. Despite a notable drop in the stock price over the last week, with a total return of -8.18%, Generac is still trading at a premium with a price-to-earnings (P/E) ratio of 37.25. Adjusted for the same period, the P/E ratio is slightly lower at 36.36.
Generac's revenue for the last twelve months as of Q1 2024 was reported at $4.024 billion, with a gross profit margin of 35.02%, indicating a solid profitability framework. However, revenue growth has seen a slight decline of 6.78% over the last twelve months. Despite this, analysts remain optimistic about the company's profitability, with an InvestingPro Tip highlighting that Generac is expected to be profitable this year and has been profitable over the last twelve months.
For investors seeking additional insights, there are more InvestingPro Tips available, including observations on Generac's debt levels and liquidity. The company operates with a moderate level of debt and has liquid assets that exceed short-term obligations, suggesting a stable financial footing. It's also worth noting that Generac does not pay a dividend to shareholders, which could be a factor for those prioritizing income-generating investments.
For those interested in a deeper dive into Generac's financial health and future prospects, InvestingPro offers additional tips and metrics. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With this, investors can access a comprehensive set of tools and analytics to make more informed decisions.
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