WAUKESHA, WI - Generac Holdings Inc. (NYSE:GNRC), a leader in power generation equipment and other engine-powered products, announced the results of its recent annual meeting of shareholders, held on June 13, 2024. The company's stockholders voted on several key issues, including the election of directors, ratification of the company's independent auditor, and approval of executive compensation and an equity incentive plan.
The shareholders elected all four of the company’s director nominees for a three-year term. Robert D. Dixon received 39,379,615 votes for his election, with 6,836,272 withheld votes, and William D. Jenkins, Jr. secured 44,721,612 votes in favor, with 1,495,068 votes withheld. David A. Ramon and Kathryn V. Roedel were also elected with 42,680,003 and 44,503,503 votes for, respectively. All director elections saw a significant number of broker non-votes, each tallying 6,161,824.
In addition, stockholders ratified the appointment of Deloitte & Touche LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024, with an overwhelming majority of 51,190,812 votes for, 1,128,533 against, and 135,549 abstentions.
The compensation of the company's named executive officers was approved on an advisory, non-binding basis, with 43,241,482 votes for, 2,887,846 against, and 163,742 abstentions. Furthermore, the Amended and Restated 2019 Equity Incentive Plan was approved with 31,987,566 votes for, 14,124,988 against, and 180,516 abstentions, also accompanied by 6,161,824 broker non-votes.
Generac's filing with the Securities and Exchange Commission on Monday confirmed these outcomes and provided detailed vote counts for each proposal. The annual meeting is a routine process for publicly traded companies, allowing shareholders to weigh in on corporate governance and other significant matters.
In other recent news, Generac Holdings reported a slight increase in net sales to $889 million in Q1 2024, driven by a 2% growth in residential product sales. However, the company saw a 2% decline in global commercial and industrial product sales. Despite these mixed results, Generac maintains a positive outlook for 2024, projecting sales growth between 3-7% and an improvement in gross margins by 300-350 basis points.
In terms of analyst ratings, Truist Securities raised the stock's price target for Generac to $170.00 from $160.00, reiterating a Buy rating. This decision came after discussions with Generac, focusing on the home standby market dynamics and the company's 2024 guidance and new product strategies in the Energy Technology segment.
On the other hand, JPMorgan (NYSE:JPM) downgraded Generac's stock from Overweight to Neutral, reducing its price target to $149.00. This change reflects the firm's cautious approach, given the stock's significant year-to-date performance. Similarly, Oppenheimer downgraded Generac from an Outperform to a Perform rating, as the company's stock price surpassed the previously set target of $145.
InvestingPro Insights
As Generac Holdings Inc. (NYSE:GNRC) continues to navigate the competitive landscape of power generation equipment, current financial metrics and expert analysis provide additional context for investors assessing the company’s performance. Generac's market capitalization stands at $8.24 billion, reflecting its substantial presence in the industry. Despite experiencing a slight revenue decline of 6.78% in the last twelve months as of Q1 2024, the company maintains a robust gross profit margin of 35.02%, underscoring efficient operations and cost management.
InvestingPro Tips suggest that Generac operates with a moderate level of debt, which could be a stabilizing factor in its financial structure. Additionally, the company's liquid assets exceed its short-term obligations, indicating a healthy liquidity position. Investors might also take note of Generac's strong return over the last three months, showcasing a 20.64% price total return, which could signal investor confidence in the company's trajectory.
For those looking to delve deeper into Generac's financial health and future prospects, InvestingPro offers additional tips and insights. There are 6 more InvestingPro Tips available for Generac, which can be accessed at Investing.com/pro/GNRC. To benefit from these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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