Generac Holdings Inc. Initiates Position in Diamond Hill Small-Mid Cap Strategy

Diamond Hill Capital's Small-Mid Cap Fund initiated a position in Generac Holdings (GNRC) in Q2 2025, citing compelling valuations. The fund returned 5.60% (gross) and 5.37% (net) compared to the Russell 2500 Index's 8.59% return. Generac Holdings is a manufacturer and supplier of power generation equipment, energy storage systems, and other power products, with a market capitalization of $11.531 billion.

Diamond Hill Capital's Small-Mid Cap Fund recently initiated a position in Generac Holdings (NYSE:GNRC) during the second quarter of 2025, citing compelling valuations. The fund achieved a gross return of 5.60% and a net return of 5.37% compared to the Russell 2500 Index's 8.59% return. Generac Holdings, a manufacturer and supplier of power generation equipment, energy storage systems, and other power products, has a market capitalization of $11.531 billion.

Analysts at Jefferies upgraded Generac to a "Hold" rating from "Underperform," noting a more favorable outlook for the generator manufacturer. The decision to shift away from struggling clean-tech investments is expected to boost margins. While challenges from established rivals in the data center sector persist, the current backlog provides some visibility, and the broader market trend is supporting investor sentiment. Jefferies also increased its price target to $200 from $150 [1].

Generac shares have surged more than 90% since hitting a low in April, driven by strong earnings and expanding market opportunities. The company's quarterly earnings results, announced on July 30, 2025, saw earnings per share (EPS) of $1.65, beating analysts' consensus estimates of $1.33. The firm reported revenue of $1.06 billion, up 6.3% year-over-year. Analysts forecast an average EPS of $8 for the current year [2].

Institutional investors and hedge funds have also shown interest in Generac. Mutual of America Capital Management LLC, Legal & General Group Plc, Bank of Nova Scotia, Raymond James Financial Inc., Treasurer of the State of North Carolina, and Covestor Ltd. have made significant changes to their positions in GNRC. Additionally, CEO Aaron Jagdfeld sold 5,000 shares in July 2025 [2].

Wall Street analysts have issued a mix of ratings for Generac. Six analysts have a "Hold" rating, while thirteen have issued a "Buy" rating. The stock has a consensus rating of "Moderate Buy" and an average price target of $174.28 [2].

References:
[1] https://seekingalpha.com/news/4483290-generac-holdings-upgraded-at-jefferies-on-improved-outlook-for-generators
[2] https://www.marketbeat.com/instant-alerts/filing-mutual-of-america-capital-management-llc-has-878000-stake-in-generac-holdings-inc-nysegnrc-2025-08-11/