Gentex Corporation (NASDAQ:GNTX) Given Average Recommendation of "Hold" by 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.

Shares of Gentex Corporation (NASDAQ:GNTX - Get Free Report) have been assigned a consensus rating of "Hold" from the nine analysts that are presently covering the company, MarketBeat reports. Six equities research analysts have rated the stock with a hold recommendation, two have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $28.6250.

Several research firms have recently weighed in on GNTX. UBS Group boosted their target price on Gentex from $23.00 to $28.00 and gave the company a "neutral" rating in a research report on Monday, July 28th. Industrial Alliance Securities set a $25.00 target price on Gentex in a research report on Friday, July 11th. B. Riley boosted their target price on Gentex from $28.00 to $32.00 and gave the company a "buy" rating in a research report on Monday, July 28th. The Goldman Sachs Group reissued a "neutral" rating on shares of Gentex in a research report on Friday, July 11th. Finally, Wall Street Zen raised Gentex from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th.

Gentex Stock Up 0.2%

Gentex stock opened at $28.46 on Friday. The company has a market cap of $6.25 billion, a price-to-earnings ratio of 16.08 and a beta of 0.85. The firm's fifty day moving average is $26.34 and its 200 day moving average is $23.83. Gentex has a 52-week low of $20.28 and a 52-week high of $31.72.

Gentex (NASDAQ:GNTX - Get Free Report) last released 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 company had revenue of $657.86 million for the quarter, compared to the consensus estimate of $591.94 million. Gentex had a net margin of 16.82% and a return on equity of 16.86%. Gentex's revenue was up 14.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.37 earnings per share. Gentex has set its FY 2025 guidance at EPS. On average, equities research analysts anticipate that Gentex will post 2.04 earnings per share for the current fiscal year.

Gentex Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 22nd. Stockholders of record on Wednesday, October 8th will be given a dividend of $0.12 per share. The ex-dividend date of this dividend is Wednesday, October 8th. This represents a $0.48 annualized dividend and a dividend yield of 1.7%. Gentex's payout ratio is currently 27.12%.

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

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Orion Porfolio Solutions LLC grew its holdings in shares of Gentex by 4.5% in the second quarter. Orion Porfolio Solutions LLC now owns 13,025 shares of the auto parts company's stock worth $286,000 after purchasing an additional 562 shares during the last quarter. Squarepoint Ops LLC grew its holdings in shares of Gentex by 567.9% in the second quarter. Squarepoint Ops LLC now owns 275,091 shares of the auto parts company's stock worth $6,049,000 after purchasing an additional 233,904 shares during the last quarter. Thrivent Financial for Lutherans grew its holdings in shares of Gentex by 1.1% in the second quarter. Thrivent Financial for Lutherans now owns 271,971 shares of the auto parts company's stock worth $5,981,000 after purchasing an additional 2,970 shares during the last quarter. State of Wyoming grew its holdings in shares of Gentex by 333.4% in the second quarter. State of Wyoming now owns 8,416 shares of the auto parts company's stock worth $185,000 after purchasing an additional 6,474 shares during the last quarter. Finally, Public Sector Pension Investment Board grew its holdings in shares of Gentex by 0.8% in the second quarter. Public Sector Pension Investment Board now owns 150,221 shares of the auto parts company's stock worth $3,303,000 after purchasing an additional 1,166 shares during the last quarter. 86.76% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.