Generac Holdings Stock Scores Rare Praise at Oppenheimer

Analyst attention was looking grim heading into today

Emma Duncan
Jan 24, 2020 at 9:48 AM
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Shares of electrical equipment name Generac Holdings Inc. (NYSE:GNRC) are trading up 4.3% at $107.42 this morning, enjoying a lift on the heels of an upgrade to "outperform" from "perform" and a newly established $125 price target at Oppenheimer. This type of analyst sentiment is a rarity for the stock, with all but two of the eight covering firms sporting a tepid "hold" recommendation coming into today.

On the other hand, today's analyst praise doesn't come as an overwhelming surprise, given GNRC's long-term outperformance on the charts. In fact, just last Friday, Jan. 17, Generac stock hit a record high of $105.41, thanks to reliable support from its ascending 50-day moving average. Even more impressive, over the past 12 months, the equity has surged 94%.

Although absolute volume is light overall, data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a long-term preference for GNRC calls over puts in the options pits. This is per the security's 50-day call/put volume ratio of 2.21, which ranks in the 81st percentile of its annual range.

Meanwhile, short sellers have jumped ship amid GNRC's uptrend. Short interest dropped 16% in the most recent reporting period. It would still take bears nearly three days to cover their remaining bets, though, and a continued round of short covering could keep the wind at the equity's back.


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