EdgePoint Investment Group Inc. Lowers Holdings in Gentex Corporation $GNTX

Key Points

• EdgePoint Investment Group Inc. has reduced its stake in Gentex Corporation by 1.8%, now holding approximately 7.22 million shares valued at $168.26 million, which represents 1.4% of its investment portfolio.
• Gentex reported strong Q2 earnings, with an EPS of $0.47 exceeding analysts' expectations of $0.39 and revenue of $657.86 million, a 14.8% increase year-over-year.
• The company announced a stock buyback program to repurchase up to 40 million outstanding shares, indicating its management's confidence in the stock's value.

EdgePoint Investment Group Inc. decreased its holdings in Gentex Corporation (NASDAQ:GNTX - Free Report) by 1.8% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 7,221,460 shares of the auto parts company's stock after selling 134,348 shares during the quarter. Gentex accounts for about 1.4% of EdgePoint Investment Group Inc.'s holdings, making the stock its 23rd largest holding. EdgePoint Investment Group Inc. owned 3.21% of Gentex worth $168,260,000 as of its most recent SEC filing.

A number of other large investors also recently bought and sold shares of GNTX. Ariel Investments LLC raised its holdings in shares of Gentex by 10.7% during the first quarter. Ariel Investments LLC now owns 7,082,055 shares of the auto parts company's stock valued at $165,012,000 after acquiring an additional 687,329 shares during the last quarter. EP Wealth Advisors LLC raised its holdings in shares of Gentex by 24.5% during the first quarter. EP Wealth Advisors LLC now owns 8,813 shares of the auto parts company's stock valued at $205,000 after acquiring an additional 1,737 shares during the last quarter. Royal Bank of Canada raised its holdings in shares of Gentex by 33.1% during the first quarter. Royal Bank of Canada now owns 189,561 shares of the auto parts company's stock valued at $4,418,000 after acquiring an additional 47,150 shares during the last quarter. Quarry LP raised its holdings in shares of Gentex by 169.2% during the first quarter. Quarry LP now owns 11,219 shares of the auto parts company's stock valued at $261,000 after acquiring an additional 7,052 shares during the last quarter. Finally, State of Wyoming acquired a new position in shares of Gentex during the first quarter valued at approximately $45,000. Institutional investors and hedge funds own 86.76% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on GNTX. Wall Street Zen raised Gentex from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. UBS Group increased their target price on Gentex from $23.00 to $28.00 and gave the company a "neutral" rating in a report on Monday, July 28th. Robert W. Baird increased their target price on Gentex from $26.00 to $30.00 and gave the company a "neutral" rating in a report on Monday, July 28th. B. Riley increased their target price on Gentex from $28.00 to $32.00 and gave the company a "buy" rating in a report on Monday, July 28th. Finally, The Goldman Sachs Group reissued a "neutral" rating on shares of Gentex in a report on Friday, July 11th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, Gentex presently has an average rating of "Hold" and a consensus price target of $28.63.

Gentex Stock Performance

Shares of GNTX stock traded up $0.23 during trading hours on Monday, reaching $28.71. The company had a trading volume of 1,910,399 shares, compared to its average volume of 2,288,506. The stock has a fifty day moving average of $25.79 and a 200-day moving average of $23.69. The company has a market capitalization of $6.30 billion, a price-to-earnings ratio of 16.22 and a beta of 0.85. Gentex Corporation has a 12-month low of $20.28 and a 12-month high of $31.72.

Gentex (NASDAQ:GNTX - Get Free Report) last posted its quarterly earnings results on Friday, July 25th. The auto parts company reported $0.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.39 by $0.08. The business had revenue of $657.86 million during the quarter, compared to analyst estimates of $591.94 million. Gentex had a return on equity of 16.86% and a net margin of 16.82%.The business's revenue was up 14.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.37 earnings per share. Gentex has set its FY 2025 guidance at EPS. On average, analysts forecast that Gentex Corporation will post 2.04 EPS for the current year.

Gentex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 22nd. Investors of record on Wednesday, October 8th will be given a $0.12 dividend. This represents a $0.48 annualized dividend and a yield of 1.7%. The ex-dividend date is Wednesday, October 8th. Gentex's dividend payout ratio is presently 27.12%.

Gentex declared that its Board of Directors has authorized a stock repurchase program on Wednesday, July 16th that allows the company to repurchase 40,000,000 shares. This repurchase authorization allows the auto parts company to repurchase shares of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board believes its stock is undervalued.

About Gentex

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, Republic of Korea, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers.