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

Company Overview - Generac Holdings is a leading provider of power generation and energy storage solutions, serving residential, commercial, and industrial markets globally [5] - The company has a market capitalization of $9.47 billion and reported revenue of $4.35 billion with a net income of $310.18 million [4] Recent Developments - Matrix Asset Advisors increased its holdings in Generac by 46,101 shares during the fourth quarter, valued at approximately $7.44 million [2] - This purchase raised Generac's stake to 1.38% of Matrix Asset Advisors' total reportable U.S. equity assets, which amount to $1.11 billion as of December 31 [3] Financial Performance - Generac's third-quarter net sales decreased by 5% to $1.1 billion, attributed to softened residential demand, while commercial and industrial revenue grew by 9% year over year [8] - The company maintained a steady adjusted EBITDA margin of 17.3% and generated $96 million in free cash flow during the third quarter [9] Market Position - Generac's stock price was $161.43 as of January 15, with a return of 0.81% over the past year, underperforming the S&P 500 by approximately 16 percentage points [3][9] - The company has a diversified revenue stream, with significant contributions from residential and light commercial standby generators, and is focused on critical infrastructure sectors [7]