2023-06-27 14:31:18 ET
Generac ( NYSE: GNRC ) on Tuesday rose to an eight-month high after a news report said the maker of home backup generators saw rising demand as a heat wave in parts of the southern United States sparks concerns about the power grid. The stock advanced as much as 9.6% -- the biggest intraday gain since May 3 -- to $143.56 a share.
The company has seen “a dramatic increase in the Texas region in sales leads” for generators and battery backup equipment, CEO Aaron Jagdfeld said in an interview with Bloomberg News on Monday.
Most of the country this summer is likely to experience above-normal temperatures, according to the National Oceanic and Atmospheric Administration’s seasonal outlook. Oklahoma, Texas and northern Mexico have seen soaring temperatures as what’s known as a “heat dome” of high-pressure air hovers for days.
Owners of Generac’s ( GNRC ) standby generators in Texas stood to provide 1 megawatt of electricity to the state’s power grid last week, Jagdfeld said. A megawatt is enough power for 200 homes in the state.
Despite the gains, Generac's ( GNRC ) stock is still down about 39% in the past 12 months.
More about Generac
- Why did Generac's stock jump today? Texas may hold a clue
- Generac rises most in 7 weeks as Texas grid eyes record power demand
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Generac rises to 8-month high after heat waves said to drive generator demand