XXEC Inc. Makes New Investment in Gentex Corporation $GNTX

Key Points

• XXEC Inc. acquired a major stake in Gentex, purchasing 187.25 million shares valued at approximately $7.7 billion. The position represented 3.9% of XXEC’s holdings and about 87.93% of Gentex’s outstanding shares.
• Gentex reported quarterly EPS of $0.58, exceeding estimates of $0.50, while revenue fell 1% year over year to $651.3 million and missed expectations. The company also maintains a quarterly dividend of $0.12, equal to a 2.0% annualized yield.
• Analyst sentiment remains cautious: Gentex has a consensus “Hold” rating from eight analysts, with a consensus price target of $26.80 versus a recent share price of $23.64.

XXEC Inc. bought a new stake in shares of Gentex Corporation (NASDAQ:GNTX - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 187,246,546 shares of the auto parts company's stock, valued at approximately $7,705,220,000. Gentex accounts for 3.9% of XXEC Inc.'s holdings, making the stock its 3rd largest holding. XXEC Inc. owned about 87.93% of Gentex at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Anchor Investment Management LLC bought a new stake in shares of Gentex during the 1st quarter worth approximately $26,000. CIBC Private Wealth Group LLC grew its position in Gentex by 2,420.7% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 2,067 shares of the auto parts company's stock valued at $58,000 after acquiring an additional 1,985 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Gentex in the 2nd quarter valued at $54,000. Arax Advisory Partners purchased a new stake in Gentex in the fourth quarter worth $52,000. Finally, AdvisorNet Financial Inc increased its stake in Gentex by 2,299.0% in the first quarter. AdvisorNet Financial Inc now owns 2,399 shares of the auto parts company's stock worth $52,000 after purchasing an additional 2,299 shares during the period. Institutional investors own 86.76% of the company's stock.

Gentex Stock Up 0.2%

GNTX opened at $23.64 on Friday. The stock's fifty day moving average is $24.28 and its two-hundred day moving average is $23.50. The company has a market capitalization of $5.03 billion, a P/E ratio of 12.51 and a beta of 0.79. Gentex Corporation has a 52 week low of $20.48 and a 52 week high of $29.38.

Gentex (NASDAQ:GNTX - Get Free Report) last issued its earnings results on Friday, July 24th. The auto parts company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.08. Gentex had a return on equity of 16.78% and a net margin of 15.50%.The business had revenue of $651.30 million during the quarter, compared to analysts' expectations of $669.65 million. During the same period in the prior year, the business earned $0.43 EPS. The business's revenue for the quarter was down 1.0% compared to the same quarter last year. Equities analysts anticipate that Gentex Corporation will post 2.04 earnings per share for the current year.

Gentex Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Investors of record on Wednesday, July 8th were paid a $0.12 dividend. The ex-dividend date of this dividend was Wednesday, July 8th. This represents a $0.48 dividend on an annualized basis and a yield of 2.0%. Gentex's dividend payout ratio is 25.40%.

Wall Street Analyst Weigh In

GNTX has been the subject of a number of recent analyst reports. Freedom Capital lowered shares of Gentex from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, July 29th. UBS Group reaffirmed a "neutral" rating and issued a $25.00 price target (down from $26.00) on shares of Gentex in a research note on Thursday, July 9th. Wall Street Zen lowered shares of Gentex from a "buy" rating to a "hold" rating in a report on Sunday, July 12th. Weiss Ratings raised shares of Gentex from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. Finally, JPMorgan Chase & Co. lowered their price objective on shares of Gentex from $28.00 to $27.00 and set a "neutral" rating for the company in a research report on Monday, August 10th. One analyst has rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, Gentex has a consensus rating of "Hold" and a consensus price target of $26.80.

About Gentex

Gentex Corporation NASDAQ: GNTX is a global technology company specializing in the design and manufacture of automotive and aerospace products. The company's primary business centers on automatic-dimming rearview mirrors, advanced driver-assistance systems (ADAS), and camera-based driver monitoring technologies. In the automotive sector, Gentex supplies exterior and interior mirrors with integrated electronics, connectivity features, and safety capabilities to many of the world's leading original equipment manufacturers (OEMs).

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