Insider Move: Aaron Jagdfeld Exercises Options, Realizing $2.66M At Generac Hldgs

Disclosed in a recent SEC filing on February 21, Jagdfeld, Chief Executive Officer at Generac Hldgs GNRC, made a noteworthy transaction involving the exercise of company stock options.

What Happened: A notable Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission revealed that Jagdfeld, Chief Executive Officer at Generac Hldgs, exercised stock options for 47,156 shares of GNRC, resulting in a transaction value of $2,659,126.

Generac Hldgs shares are trading, exhibiting up of 0.35% and priced at $114.02 during Thursday's morning. This values Jagdfeld's 47,156 shares at $2,659,126.

All You Need to Know About Generac Hldgs

Generac Power Systems designs and manufactures power generation equipment serving residential, commercial, and industrial markets. It offers standby generators, portable generators, lighting, outdoor power equipment, and a suite of clean energy products. Sales generated in the United States account for the majority of total sales.

A Deep Dive into Generac Hldgs's Financials

Revenue Growth: Generac Hldgs's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -0.65%. This indicates a decrease in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Analyzing Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 36.55%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Generac Hldgs's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 1.59.

Debt Management: Generac Hldgs's debt-to-equity ratio stands notably higher than the industry average, reaching 0.74. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Generac Hldgs's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 34.75.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.75 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 15.09 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Importance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Exploring Key Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Generac Hldgs's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.