Why a $7.4 Million Buy in this Power Stock Matters Even as Shares Trail the S&P by 16 Points

On January 16, Matrix Asset Advisors disclosed in a U.S. Securities and Exchange Commission filing that it added 46,101 shares of Generac Holdings (NYSE:GNRC) in the fourth quarter, an estimated $7.44 million transaction based on average pricing in the period.

What happened

According to a U.S. Securities and Exchange Commission filing dated January 16, Matrix Asset Advisors increased its holdings of Generac by 46,101 shares during the fourth quarter. The estimated transaction value was $7.44 million, calculated using the average unadjusted closing price over the quarter. Meanwhile, the quarter-end position value changed by $4.21 million, reflecting both the trade and share price movement in the period.

What else to know

The purchase lifted the Generac stake to 1.38% of Matrix Asset Advisors’ $1.11 billion in reportable U.S. equity assets as of December 31.

Top fund holdings after the filing:

• NASDAQ: MSFT: $69.02 million (6.2% of AUM)
• NASDAQ: GOOGL: $50.69 million (4.6% of AUM)
• UNK: MAVF: $50.45 million (4.5% of AUM)
• NYSE: MS: $46.25 million (4.2% of AUM)
• NYSE: JPM: $43.87 million (3.9% of AUM)

As of January 15, Generac shares were priced at $161.43. The stock returned 0.81% over the past year and underperformed the S&P 500 by about 16 percentage points.

Company overview

Company snapshot

• Generac Holdings offers power generation equipment, energy storage systems, and a range of outdoor power products, with significant revenue from residential and light commercial standby generators.
• The company generates revenue through the design, manufacture, and sale of proprietary products, distributed via independent dealers, distributors, retailers, e-commerce, and direct-to-end-user channels.
• It serves residential, commercial, industrial, and municipal customers globally, with a focus on homeowners, small businesses, and critical infrastructure sectors.

Generac Holdings Inc. is a leading provider of power generation and energy storage solutions, with a diversified portfolio spanning residential, commercial, and industrial markets. The company leverages a broad distribution network and proprietary technology to address the growing demand for reliable backup power and energy management. Its scale and product innovation support a competitive position in the global industrial machinery sector.

What this transaction means for investors

Residential demand softened last year for Generac as outage hours hit their lowest third-quarter level since 2015, pushing net sales down 5% to $1.1 billion during the third quarter. But that headline misses the offset. Commercial and industrial revenue grew 9% year over year, driven by telecom, industrial customers, and early shipments of large-megawatt generators to data centers. Management said the backlog for those data-center products doubled in just 90 days, a detail that matters more than last year’s storm count.

Financially, the business remains solidly profitable despite the lull. Third-quarter adjusted EBITDA margin held roughly steady at 17.3%, and the company generated $96 million in free cash flow. Guidance was reset to roughly flat sales for 2025, but that reset already appears reflected in a stock that underperformed the S&P 500 by about 16 percentage points over the past year.

Meanwhile, this position sits at just 1.38% of assets, well below Matrix Asset Advisors’ largest holdings like Microsoft and Google. That sizing suggests patience, not panic, and long-term investors should probably keep that in mind.

JPMorgan Chase is an advertising partner of Motley Fool Money. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, JPMorgan Chase, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.