Generac Holdings Inc. (NYSE: GNRC) is seeing another instance where insiders are selling out of shares in a secondary offering. The power backup generator company is selling 9 million shares of common stock. Morgan Stanley was the sole underwriter named in the offering, and this share sale went off at $37.17 per share.
What investors need to know is that the shares are being sold by funds affiliated with private equity player CCMP Capital. None of the proceeds will go to Generac or to its officers and directors.
The SEC filing on record shows that CCMP Capital will still own 14,512,998 shares after this offering. That translates to what remains the highest outside stake, at 21.2%, of the generator company.
Generac shares closed at $38.17 on Monday, against a 52-week trading range of $18.35 to $41.40. The aftermath of Hurricane Sandy and other weather related instances have given a serious boost to Generac and its $2.6 billion valuation.
Currently shares are trading down just over 3% at $37.00 in active trading. After the drop this Tuesday, Generac shares trade at only about 11.4 times the expected consensus earnings estimate for 2013. That may not sound expensive at all, but note that Generac’s main source of sales is selling new equipment year after year.
In 20 Years, I Haven’t Seen A Cash Back Card This Good
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.