Is Generac Holdings (GNRC) Stock Under Macro-Economic Pressure?

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, its Investor Class fund ARTMX returned -1.13%, Advisor Class fund APDMX posted a return of -1.12%, and Institutional Class fund APHMX returned -1.07%, compared to a return of 6.90% for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Artisan Partners highlighted stocks like Generac Holdings Inc. (NYSE:GNRC) in the Q4 2022 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 January 19, 2023, Generac Holdings Inc. (NYSE:GNRC) stock closed at $105.32 per share. One-month return of Generac Holdings Inc. (NYSE:GNRC) was 14.24%, and its shares lost 61.16% of their value over the last 52 weeks. Generac Holdings Inc. (NYSE:GNRC) has a market capitalization of $6.673 billion.

Artisan Partners made the following comment about Generac Holdings Inc. (NYSE:GNRC) in its Q4 2022 investor letter:

“Generac Holdings Inc. (NYSE:GNRC) is a provider of residential backup generators in the US with a dominant market position. Our thesis was based on climate change causing more frequent and severe storms and power grid failures, both of which should bolster demand for Generac’s generators. In addition, the company’s residential solar backup battery business could also enhance its overall profit cycle potential over time. That said, we now believe generator demand (and potentially residential solar backup sales) may be entering a cyclical downturn as homeowners face inflation and rising interest rates. With sales and profits likely to come under pressure, we decided to harvest the position.”

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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, 36 hedge fund portfolios held Generac Holdings Inc. (NYSE:GNRC) at the end of the third quarter which was 34 in the previous quarter.

We discussed Generac Holdings Inc. (NYSE:GNRC) in another article and shared Carillon Tower Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.