Generac Holdings (GNRC) Fell on Lowered Guidance
Ariel Investments, an investment management company, released its “Ariel Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The third quarter saw losses in the U.S. stock market due to concerns about a government shutdown, autoworker strikes, rising oil prices, and the possibility that interest rates might stay higher for longer. In the third quarter, Ariel fund declined -7.15% underperforming both the Russell 2500 Value Index and the Russell 2500 Index, which returned -3.66% and -4.78%, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Fund highlighted stocks like Generac Holdings Inc. (NYSE:GNRC) in the Q2 2023 investor letter. Headquartered in Waukesha, Wisconsin, Generac Holdings Inc. (NYSE:GNRC) is a power generation equipment, energy storage systems, and other power product manufacturer and supplier. On November 28, 2023, Generac Holdings Inc. (NYSE:GNRC) stock closed at $113.88 per share. One-month return of Generac Holdings Inc. (NYSE:GNRC) was 18.46%, and its shares gained 7.92% of their value over the last 52 weeks. Generac Holdings Inc. (NYSE:GNRC) has a market capitalization of $6.996 billion.
Ariel Fund made the following comment about Generac Holdings Inc. (NYSE:GNRC) in its Q3 2023 investor letter:
"Finally, leading global manufacturer of power generation equipment, Generac Holdings Inc. (NYSE:GNRC), underperformed in the quarter. Management lowered full-year guidance as a soft consumer environment resulted in weaker-than-expected residential sales, margin contraction and an earnings miss. Subsequently, GNRC held an investor day and issued a new 3-year outlook above consensus driven by grid instability, climate change and accelerating power outages. In our view, GNRC’s home standby generator business as well as its commercial and industrial opportunities will benefit from such heightened consumer sensitivities and result in a long runway of penetration across an expanding addressable market, margin expansion and free cash flow generation."
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Generac Holdings Inc. (NYSE:GNRC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Generac Holdings Inc. (NYSE:GNRC) at the end of third quarter which was 43 in the previous quarter.
We discussed Generac Holdings Inc. (NYSE:GNRC) in another article and shared the list of best infrastructure stocks to buy. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
