Gentex (NASDAQ:GNTX) Announces Earnings Results

Key Points

• Gentex reported earnings per share of $0.47 for the quarter, exceeding analysts' expectations of $0.39, with revenue of $657.86 million, significantly above estimates of $591.94 million.
• The company announced a quarterly dividend of $0.12 per share, representing a 1.75% yield, and initiated a stock repurchase plan allowing for the buyback of 40 million shares.
• Following the earnings announcement, Gentex's stock rose by 16.2%, hitting a trading price of $27.42.

Gentex (NASDAQ:GNTX - Get Free Report) posted its earnings results on Friday. The auto parts company reported $0.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.39 by $0.08, RTT News reports. Gentex had a net margin of 17.01% and a return on equity of 16.11%. The firm had revenue of $657.86 million during the quarter, compared to analyst estimates of $591.94 million. During the same period in the previous year, the business posted $0.37 EPS. Gentex's revenue was up 14.8% on a year-over-year basis. Gentex updated its FY 2025 guidance to EPS.

Gentex Trading Up 16.2%

NASDAQ:GNTX traded up $3.82 on Friday, hitting $27.42. The company's stock had a trading volume of 6,812,382 shares, compared to its average volume of 2,467,679. The stock has a fifty day moving average of $22.37 and a two-hundred day moving average of $23.51. The firm has a market capitalization of $6.16 billion, a P/E ratio of 16.04 and a beta of 0.81. Gentex has a one year low of $20.28 and a one year high of $31.75.

Gentex Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 23rd. Investors 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 1.75%. Gentex's payout ratio is presently 28.07%.

Gentex announced that its board has initiated a stock repurchase 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 reacquire shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

Insider Transactions at Gentex

In other Gentex news, Director Joseph B. Anderson, Jr. sold 3,764 shares of the company's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $22.87, for a total value of $86,082.68. Following the sale, the director owned 5,939 shares in the company, valued at $135,824.93. This represents a 38.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.45% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Gentex

A number of large investors have recently made changes to their positions in the company. Goldman Sachs Group Inc. increased its stake in shares of Gentex by 1.8% during the first quarter. Goldman Sachs Group Inc. now owns 1,321,634 shares of the auto parts company's stock worth $30,794,000 after purchasing an additional 23,454 shares during the period. Royal Bank of Canada increased its stake 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 worth $4,418,000 after purchasing an additional 47,150 shares during the period. Finally, Empowered Funds LLC increased its stake in shares of Gentex by 255.6% during the first quarter. Empowered Funds LLC now owns 81,142 shares of the auto parts company's stock worth $1,891,000 after purchasing an additional 58,323 shares during the period. Institutional investors own 86.76% of the company's stock.

Analyst Ratings Changes

A number of analysts recently commented on GNTX shares. Baird R W downgraded shares of Gentex from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 15th. Robert W. Baird upped their price objective on shares of Gentex from $25.00 to $26.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Industrial Alliance Securities set a $25.00 price target on Gentex in a research note on Friday, July 11th. Wall Street Zen raised Gentex from a "hold" rating to a "buy" rating in a research note on Saturday. Finally, Guggenheim lowered their target price on Gentex from $30.00 to $24.00 and set a "buy" rating on the stock in a report on Tuesday, April 22nd. Seven equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat.com, Gentex currently has an average rating of "Hold" and a consensus price target of $28.28.

Gentex Company Profile

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.

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