Gagnon Securities Fully Exits Power Solutions International Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy PSIX?
Source: NASDAQ.COM
- Complete Exit: Gagnon Securities sold 64,770 shares of Power Solutions International in Q4, resulting in a total position value decrease of $6.36 million, indicating a cautious outlook on the stock's future performance.
- Performance Review: Despite Power Solutions International posting record Q3 sales of $203.8 million, up 62%, and net income of $27.6 million, up 59%, Gagnon chose to trim its position after a 140% stock price increase, reflecting a strategy of risk management.
- Market Dynamics: The company anticipates a 45% sales increase for 2025 driven by data center demand, yet gross margins compressed to 23.9%, highlighting operational risks associated with rapid expansion, which investors should monitor for future profitability.
- Investment Advice: Following Gagnon's exit, Power Solutions International was not included in The Motley Fool Stock Advisor's list of the 10 best stocks, indicating market skepticism about its growth potential, prompting investors to carefully assess its investment value.
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Analyst Views on PSIX
Wall Street analysts forecast PSIX stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 92.720
Low
101.51
Averages
101.51
High
101.51
Current: 92.720
Low
101.51
Averages
101.51
High
101.51
About PSIX
Power Solutions International, Inc. designs, engineers, manufactures, markets and sells a broad range of advanced, emission-certified engines and power systems that are powered by a wide variety of clean, alternative fuels, including natural gas, propane, and biofuels, as well as gasoline and diesel options, within the power systems, industrial and transportation end markets. It develops and delivers complete power systems that are used worldwide in stationary and mobile power generation applications supporting standby, prime, demand response, and microgrid solutions, as well as products and packages supporting the data center markets. The Company’s industrial end market provides engine and battery powertrain solutions to serve applications such as forklifts, agricultural and turf, arbor care, industrial sweepers, aerial lifts, irrigation pumps, ground support, and construction equipment. The Company’s products are primarily used by global original equipment manufacturers (OEMs).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gagnon Securities Fully Exits Power Solutions International Holdings
- Complete Exit: Gagnon Securities sold 64,770 shares of Power Solutions International in Q4, resulting in a total position value decrease of $6.36 million, indicating a cautious outlook on the stock's future performance.
- Performance Review: Despite Power Solutions International posting record Q3 sales of $203.8 million, up 62%, and net income of $27.6 million, up 59%, Gagnon chose to trim its position after a 140% stock price increase, reflecting a strategy of risk management.
- Market Dynamics: The company anticipates a 45% sales increase for 2025 driven by data center demand, yet gross margins compressed to 23.9%, highlighting operational risks associated with rapid expansion, which investors should monitor for future profitability.
- Investment Advice: Following Gagnon's exit, Power Solutions International was not included in The Motley Fool Stock Advisor's list of the 10 best stocks, indicating market skepticism about its growth potential, prompting investors to carefully assess its investment value.
See More
Gagnon Securities Fully Exits Power Solutions International Position
- Complete Exit: Gagnon Securities sold approximately 64,770 shares of Power Solutions International (PSI) in Q4 2026, valued at $6.36 million, resulting in no holdings by year-end, reflecting a risk control strategy amid market volatility.
- Strong Stock Performance: As of February 12, 2026, PSI shares were priced at $92.72, marking a staggering 140% increase over the past year, significantly outperforming the S&P 500's 12% gain, indicating robust market performance and investor confidence.
- Impressive Financial Results: PSI reported third-quarter sales of $203.8 million, up 62%, and net income of $27.6 million, up 59%, showcasing strong growth potential driven by data center demand.
- Strategic Risk Management: Following a substantial stock price increase, Gagnon Securities opted to trim its position, indicating a cautious risk management approach within its portfolio, even as the company may continue to grow due to sustained data center demand.
See More
Small-Cap Stocks Surge, Outperforming Large-Caps
- Small-Cap Outperformance: Year-to-date in 2026, the iShares Core S&P Small-Cap ETF (IJR) has surged 10.9%, significantly outperforming the SPDR S&P 500 ETF Trust (SPY), which only rose 1.4%, indicating a potential shift in investor sentiment towards small-cap stocks after years of underperformance.
- Top Small-Cap Stocks: Leading the small-cap industrial sector is Power Solutions International (PSIX), with an impressive 18.23% above its 200-day simple moving average (200DSMA), highlighting its strong market position and potential for attracting investor interest.
- Close Competitors: Healthcare Services Group (HCSG) and Wabash National (WNC) follow closely with 17.84% and 17.83% above their respective 200DSMAs, showcasing their competitive edge in the small-cap space and potential for future growth.
- Notable Performers: LSI Industries (LYTS) and FTAI Infrastructure (FIP) round out the top five with 17.40% and 17.33% above their 200DSMA, reflecting the robust performance of small-cap stocks in the industrial sector and prompting investors to reassess their portfolios.
See More
Uncertain Future for Electric Vehicle Investments
- Uneven Investment Distribution: According to Atlas Public Policy, over $200 billion has been invested in U.S. EV and battery manufacturing from 2000 to 2024, with 84% of battery investments and 62% of EV manufacturing investments directed to Republican-led districts, indicating a significant political influence on investment patterns that may lead to future job imbalances.
- Sales Decline Impact: Hyundai Motor Group has experienced dramatic fluctuations in EV sales, with a 50% drop by the fourth quarter after initial growth in the first quarter, directly affecting its competitive position in the U.S. market and forcing the company to adjust its strategy in response to market changes.
- Massive Investment and Layoff Risks: Hyundai's $12.6 billion investment in the Metaplant in Georgia is expected to create 8,500 jobs by 2031, but the cancellation of federal incentives has led to an additional $2.7 billion investment to boost production, highlighting the high risks associated with uncertain market conditions.
- Industry-Wide Challenges: Companies like Ford and General Motors have announced they will face at least $100 billion in write-downs on EV investments, reflecting the immense financial pressure the entire industry faces during the EV transition, while Hyundai aims to avoid similar financial losses through flexible production strategies.
See More
PSIX Stock Shows Significant Volatility with 52-Week High of $121.78
- Stock Price Analysis: PSIX's 52-week low is $18.10 per share, while the high is $121.78, with the last trade at $63.23, indicating significant volatility over the past year and reflecting varying market expectations regarding its future performance.
- Market Trend Observation: The current stock price of $63.23 is below the 200-day moving average, which may suggest a lack of investor confidence in the short term, necessitating close monitoring of subsequent market dynamics to assess potential impacts on the company's fundamentals.
- Investor Sentiment Assessment: Despite the considerable price fluctuations, market perceptions of PSIX remain diverse, prompting investors to carefully analyze its financial health and industry outlook to make informed investment decisions.
- Technical Indicator Interpretation: The disparity between PSIX's high and low points within the 52-week range may provide crucial insights for technical analysis, allowing investors to formulate effective trading strategies.
See More
PSIX Options Selling Offers 19.4% Annualized Return Potential
- Options Selling Strategy: By selling puts at a $40 strike price, investors can only achieve a 19.4% annualized return unless PSIX shares decline by 36.3%, indicating a careful balance of risk and reward in this strategy.
- Market Volatility Analysis: With a trailing twelve-month volatility of 97%, PSIX's stock price fluctuations highlight the need for investors to consider market uncertainties and potential risks when evaluating options selling.
- Exercise Conditions: The put seller will only be forced to hold shares if PSIX's price drops below $35, which will affect the cost basis and future investment decisions, emphasizing the importance of market monitoring.
- Return and Risk Assessment: While selling options can yield short-term gains, investors must prudently assess market dynamics to ensure a favorable risk-reward ratio, particularly in a volatile environment.
See More
Gagnon Securities Fully Exits Power Solutions International Holdings
- Complete Exit: Gagnon Securities sold 64,770 shares of Power Solutions International in Q4, resulting in a total position value decrease of $6.36 million, indicating a cautious outlook on the stock's future performance.
- Performance Review: Despite Power Solutions International posting record Q3 sales of $203.8 million, up 62%, and net income of $27.6 million, up 59%, Gagnon chose to trim its position after a 140% stock price increase, reflecting a strategy of risk management.
- Market Dynamics: The company anticipates a 45% sales increase for 2025 driven by data center demand, yet gross margins compressed to 23.9%, highlighting operational risks associated with rapid expansion, which investors should monitor for future profitability.
- Investment Advice: Following Gagnon's exit, Power Solutions International was not included in The Motley Fool Stock Advisor's list of the 10 best stocks, indicating market skepticism about its growth potential, prompting investors to carefully assess its investment value.
See More
Gagnon Securities Fully Exits Power Solutions International Position
- Complete Exit: Gagnon Securities sold approximately 64,770 shares of Power Solutions International (PSI) in Q4 2026, valued at $6.36 million, resulting in no holdings by year-end, reflecting a risk control strategy amid market volatility.
- Strong Stock Performance: As of February 12, 2026, PSI shares were priced at $92.72, marking a staggering 140% increase over the past year, significantly outperforming the S&P 500's 12% gain, indicating robust market performance and investor confidence.
- Impressive Financial Results: PSI reported third-quarter sales of $203.8 million, up 62%, and net income of $27.6 million, up 59%, showcasing strong growth potential driven by data center demand.
- Strategic Risk Management: Following a substantial stock price increase, Gagnon Securities opted to trim its position, indicating a cautious risk management approach within its portfolio, even as the company may continue to grow due to sustained data center demand.
See More
Small-Cap Stocks Surge, Outperforming Large-Caps
- Small-Cap Outperformance: Year-to-date in 2026, the iShares Core S&P Small-Cap ETF (IJR) has surged 10.9%, significantly outperforming the SPDR S&P 500 ETF Trust (SPY), which only rose 1.4%, indicating a potential shift in investor sentiment towards small-cap stocks after years of underperformance.
- Top Small-Cap Stocks: Leading the small-cap industrial sector is Power Solutions International (PSIX), with an impressive 18.23% above its 200-day simple moving average (200DSMA), highlighting its strong market position and potential for attracting investor interest.
- Close Competitors: Healthcare Services Group (HCSG) and Wabash National (WNC) follow closely with 17.84% and 17.83% above their respective 200DSMAs, showcasing their competitive edge in the small-cap space and potential for future growth.
- Notable Performers: LSI Industries (LYTS) and FTAI Infrastructure (FIP) round out the top five with 17.40% and 17.33% above their 200DSMA, reflecting the robust performance of small-cap stocks in the industrial sector and prompting investors to reassess their portfolios.
See More
Uncertain Future for Electric Vehicle Investments
- Uneven Investment Distribution: According to Atlas Public Policy, over $200 billion has been invested in U.S. EV and battery manufacturing from 2000 to 2024, with 84% of battery investments and 62% of EV manufacturing investments directed to Republican-led districts, indicating a significant political influence on investment patterns that may lead to future job imbalances.
- Sales Decline Impact: Hyundai Motor Group has experienced dramatic fluctuations in EV sales, with a 50% drop by the fourth quarter after initial growth in the first quarter, directly affecting its competitive position in the U.S. market and forcing the company to adjust its strategy in response to market changes.
- Massive Investment and Layoff Risks: Hyundai's $12.6 billion investment in the Metaplant in Georgia is expected to create 8,500 jobs by 2031, but the cancellation of federal incentives has led to an additional $2.7 billion investment to boost production, highlighting the high risks associated with uncertain market conditions.
- Industry-Wide Challenges: Companies like Ford and General Motors have announced they will face at least $100 billion in write-downs on EV investments, reflecting the immense financial pressure the entire industry faces during the EV transition, while Hyundai aims to avoid similar financial losses through flexible production strategies.
See More
PSIX Stock Shows Significant Volatility with 52-Week High of $121.78
- Stock Price Analysis: PSIX's 52-week low is $18.10 per share, while the high is $121.78, with the last trade at $63.23, indicating significant volatility over the past year and reflecting varying market expectations regarding its future performance.
- Market Trend Observation: The current stock price of $63.23 is below the 200-day moving average, which may suggest a lack of investor confidence in the short term, necessitating close monitoring of subsequent market dynamics to assess potential impacts on the company's fundamentals.
- Investor Sentiment Assessment: Despite the considerable price fluctuations, market perceptions of PSIX remain diverse, prompting investors to carefully analyze its financial health and industry outlook to make informed investment decisions.
- Technical Indicator Interpretation: The disparity between PSIX's high and low points within the 52-week range may provide crucial insights for technical analysis, allowing investors to formulate effective trading strategies.
See More
PSIX Options Selling Offers 19.4% Annualized Return Potential
- Options Selling Strategy: By selling puts at a $40 strike price, investors can only achieve a 19.4% annualized return unless PSIX shares decline by 36.3%, indicating a careful balance of risk and reward in this strategy.
- Market Volatility Analysis: With a trailing twelve-month volatility of 97%, PSIX's stock price fluctuations highlight the need for investors to consider market uncertainties and potential risks when evaluating options selling.
- Exercise Conditions: The put seller will only be forced to hold shares if PSIX's price drops below $35, which will affect the cost basis and future investment decisions, emphasizing the importance of market monitoring.
- Return and Risk Assessment: While selling options can yield short-term gains, investors must prudently assess market dynamics to ensure a favorable risk-reward ratio, particularly in a volatile environment.
See More
