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.
