Element Capital Management LLC Invests $2.57 Million in Gentex Corporation $GNTX

Key Points

• Element Capital Management LLC invested $2.57 million in Gentex Corporation, acquiring 110,148 shares according to a recent SEC filing.
• Gentex reported a quarterly earnings per share of $0.47, exceeding analysts' expectations and showing a 14.8% year-over-year revenue increase.
• The company has authorized a share repurchase program allowing the repurchase of 40 million shares, indicating leadership's belief in the stock's undervaluation.

Element Capital Management LLC purchased a new stake in Gentex Corporation (NASDAQ:GNTX - Free Report) in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund purchased 110,148 shares of the auto parts company's stock, valued at approximately $2,566,000.

A number of other institutional investors have also made changes to their positions in GNTX. JPMorgan Chase & Co. raised its holdings in shares of Gentex by 46.2% in the first quarter. JPMorgan Chase & Co. now owns 7,673,701 shares of the auto parts company's stock valued at $178,797,000 after buying an additional 2,424,471 shares during the last quarter. Vanguard Group Inc. raised its holdings in shares of Gentex by 4.1% in the first quarter. Vanguard Group Inc. now owns 22,581,938 shares of the auto parts company's stock valued at $526,159,000 after buying an additional 886,785 shares during the last quarter. Raymond James Financial Inc. bought a new stake in Gentex during the 4th quarter worth about $24,479,000. Epoch Investment Partners Inc. lifted its position in Gentex by 16.0% during the 4th quarter. Epoch Investment Partners Inc. now owns 4,438,938 shares of the auto parts company's stock valued at $127,531,000 after purchasing an additional 611,635 shares during the period. Finally, Adage Capital Partners GP L.L.C. acquired a new position in Gentex during the 4th quarter valued at about $15,802,000. 86.76% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have commented on GNTX. The Goldman Sachs Group reiterated a "neutral" rating on shares of Gentex in a research report on Friday, July 11th. Wall Street Zen raised Gentex from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Robert W. Baird upped their price target on Gentex from $26.00 to $30.00 and gave the company a "neutral" rating in a research note on Monday, July 28th. UBS Group upped their price target on Gentex from $23.00 to $28.00 and gave the company a "neutral" rating in a research note on Monday, July 28th. Finally, Industrial Alliance Securities set a $25.00 price target on Gentex in a research note on Friday, July 11th. Two investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $28.63.

Gentex Price Performance

NASDAQ:GNTX traded up $0.51 during trading hours on Tuesday, reaching $27.69. 1,558,012 shares of the stock were exchanged, compared to its average volume of 2,319,423. Gentex Corporation has a twelve month low of $20.28 and a twelve month high of $31.75. The stock has a market cap of $6.08 billion, a PE ratio of 15.64 and a beta of 0.82. The firm has a 50 day moving average of $24.16 and a 200 day moving average of $23.41.

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

Gentex announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, July 16th that allows the company to buyback 40,000,000 shares. This buyback authorization allows the auto parts company to buy shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Gentex Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 23rd. Shareholders of record on Wednesday, July 9th were issued a dividend of $0.12 per share. The ex-dividend date of this dividend was Wednesday, July 9th. This represents a $0.48 annualized dividend and a yield of 1.7%. Gentex's dividend payout ratio (DPR) is currently 27.12%.

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.