Market Commentary
Tom Suozzi Sold Generac Stock Days Before Big Drop
Tom Suozzi, the U.S. Representative for New York's 3rd congressional district since 2017, disclosed yesterday he sold more Generac Holdings (GNRC:US) shares. Rep. Suozzi of the house traded between $1,000 - $15,000 of Generac stock on November 15, when shares closed at $107.7.
It could be that Congressman Suozzi was completely exiting the position in a stock that vastly underperformed the market in recent months. Earlier this month, the Congressman disclosed he sold between $50,000 - $100,000 worth of GNRC stock on October 11, when shares closed at $152.06.
Just a couple of days later, GNRC stock slumped about 25% in a single day after the manufacturer of backup power generators slashed its full-year sales growth forecast range to 22-24%, from 36-40% previously. Moreover, the company reported preliminary Q3 results that missed the average analyst estimates.
“Despite reporting mid-teens net sales growth, third quarter results fell short of our prior expectations,” said Aaron Jagdfeld, President and Chief Executive Officer. “While shipments of Commercial & Industrial products performed as expected, Residential product sales were pressured during the quarter.”
Understandably, Generac shares plunged in the weeks to come to trade 40% lower since Mr. Suozzi made the sale. GNRC stock is down almost 70% since mid-August.
Rep. Suozzi selling Generac shares in October and November follows a period of accumulating a stake in the industrial company. The Congressman was buying GNRC shares in May and September with one purchase made while the stock was trading above $300 per share.
Although he sold shares at a significant discount relative to entry prices from earlier in 2022, Rep. Suozzi still saved himself some money by selling before the big drop in Generac stock, which closed at $90.93 on Tuesday.
Congressman Suozzi often mostly traded tech stocks with chipmakers Nvidia (NVDA:US) and Advanced Micro Devices (AMD:US) topping the list.