Gentex Corporation (NASDAQ:GNTX) Receives Average Rating of "Hold" from Brokerages

Key Points

• Gentex Corporation has received a consensus rating of "Hold" from nine analysts, with target prices ranging from $23.00 to $32.00.
• The company recently reported earnings of $0.47 per share, beating estimates, and announced a quarterly dividend of $0.12 per share.
• Gentex has implemented a stock buyback plan, allowing the repurchase of 40 million outstanding shares, a move typically signaling that the stock is undervalued.

Gentex Corporation (NASDAQ:GNTX - Get Free Report) has been assigned an average recommendation of "Hold" from the nine analysts that are currently covering the firm, Marketbeat reports. Six research analysts have rated the stock with a hold recommendation, two have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $28.6250.

A number of equities analysts recently issued reports on GNTX shares. The Goldman Sachs Group restated a "neutral" rating on shares of Gentex in a report on Friday, July 11th. B. Riley lifted their target price on Gentex from $28.00 to $32.00 and gave the stock a "buy" rating in a report on Monday, July 28th. Industrial Alliance Securities set a $25.00 target price on Gentex in a report on Friday, July 11th. UBS Group lifted their target price on Gentex from $23.00 to $28.00 and gave the stock a "neutral" rating in a report on Monday, July 28th. Finally, Robert W. Baird lifted their target price on Gentex from $26.00 to $30.00 and gave the stock a "neutral" rating in a report on Monday, July 28th.

Gentex Stock Performance

Shares of GNTX stock traded down $0.01 during mid-day trading on Friday, hitting $29.05. 1,782,933 shares of the stock traded hands, compared to its average volume of 1,760,572. Gentex has a twelve month low of $20.28 and a twelve month high of $31.72. The firm has a market cap of $6.38 billion, a price-to-earnings ratio of 16.41 and a beta of 0.85. The company's 50-day simple moving average is $26.79 and its 200-day simple moving average is $23.95.

Gentex (NASDAQ:GNTX - Get Free Report) last issued its quarterly earnings results on Friday, July 25th. The auto parts company reported $0.47 earnings per share (EPS) for the quarter, beating the consensus estimate 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 period last year, the firm earned $0.37 EPS. The firm's revenue for the quarter was up 14.8% on a year-over-year basis. Gentex has set its FY 2025 guidance at EPS. Analysts forecast that Gentex will post 2.04 earnings per share for the current year.

Gentex Dividend Announcement

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

Gentex declared that its Board of Directors has initiated a share buyback program on Wednesday, July 16th that authorizes the company to repurchase 40,000,000 outstanding shares. This repurchase authorization authorizes the auto parts company to repurchase shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company's leadership believes its stock is undervalued.

Institutional Trading of Gentex

Several hedge funds and other institutional investors have recently modified their holdings of GNTX. Fuller & Thaler Asset Management Inc. boosted its position in shares of Gentex by 487.7% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 3,447,651 shares of the auto parts company's stock worth $80,330,000 after buying an additional 2,860,969 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Gentex by 142.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,589,585 shares of the auto parts company's stock worth $106,937,000 after buying an additional 2,695,117 shares during the period. American Century Companies Inc. boosted its position in shares of Gentex by 60.5% in the second quarter. American Century Companies Inc. now owns 6,611,258 shares of the auto parts company's stock worth $145,382,000 after buying an additional 2,492,026 shares during the period. JPMorgan Chase & Co. boosted its position 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 worth $178,797,000 after buying an additional 2,424,471 shares during the period. Finally, Norges Bank acquired a new stake in shares of Gentex in the second quarter worth $51,815,000. Institutional investors and hedge funds own 86.76% of the company's stock.

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.