What Happened?
Shares of power generation products company Generac (NYSE: GNRC) fell 2.3% in the morning session after investment firm Canaccord Genuity lowered its price target on the stock, pointing to a mild hurricane season and fewer power outages.
The firm noted that power outages in the third quarter averaged around 74,000 per day, a sharp drop from the 228,000 per day recorded in the same period of the previous year. Since a large portion of Generac's revenue, roughly 50%, came from home standby generators, the lower outage activity signaled potentially weaker near-term sales. Despite cutting the price target to $240 from $250, Canaccord maintained its 'Buy' rating on the shares, indicating that it still saw long-term growth potential for the company.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Generac? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Generac’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 23 days ago when the stock dropped 3.7% on the news that the major indices continued to retreat amid profit-taking and renewed concerns about tariffs.
Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.
Generac is up 4.7% since the beginning of the year, but at $164.43 per share, it is still trading 18.9% below its 52-week high of $202.85 from August 2025. Investors who bought $1,000 worth of Generac’s shares 5 years ago would now be looking at an investment worth $910.16.
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