Gentex (NASDAQ:GNTX) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Gentex beat expectations, reporting Q EPS of $0.48 versus the $0.44 consensus and revenue of $675.44M (up 17.1% year-over-year), with a 16.05% ROE and a 15.19% net margin.
• Shares rose about 1.6% to $23.39 after the release; the company has a $5.0B market cap, a P/E of 13.43, and announced a quarterly dividend of $0.12 (annualized $0.48) for a ~2.1% yield.
• Insiders (including the CEO and CFO) sold meaningful blocks of stock recently while several hedge funds and institutional investors significantly increased positions, leaving institutional ownership around 86.8%; analysts’ consensus is a “Hold” with an average target of $26.17.

Gentex (NASDAQ:GNTX - Get Free Report) announced its earnings results on Friday. The auto parts company reported $0.48 EPS for the quarter, beating analysts' consensus estimates of $0.44 by $0.04, FiscalAI reports. The firm had revenue of $675.44 million for the quarter, compared to analysts' expectations of $649.42 million. Gentex had a return on equity of 16.05% and a net margin of 15.19%.Gentex's quarterly revenue was up 17.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.42 EPS.

Gentex Trading Up 1.6%

Shares of Gentex stock traded up $0.36 during trading hours on Friday, reaching $23.39. The stock had a trading volume of 2,606,834 shares, compared to its average volume of 2,217,893. The firm has a market capitalization of $5.00 billion, a price-to-earnings ratio of 13.43 and a beta of 0.77. Gentex has a 1 year low of $20.48 and a 1 year high of $29.38. The firm has a 50 day simple moving average of $22.37 and a two-hundred day simple moving average of $23.38.

Gentex Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 22nd. Stockholders of record on Wednesday, April 8th were issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date was Wednesday, April 8th. Gentex's dividend payout ratio (DPR) is 27.59%.

Insider Transactions at Gentex

In related news, CFO Kevin C. Nash sold 11,885 shares of the stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $24.98, for a total transaction of $296,887.30. Following the completion of the sale, the chief financial officer owned 59,430 shares of the company's stock, valued at approximately $1,484,561.40. This represents a 16.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Steven R. Downing sold 35,000 shares of the firm's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $24.75, for a total transaction of $866,250.00. Following the completion of the transaction, the chief executive officer owned 211,670 shares in the company, valued at $5,238,832.50. The trade was a 14.19% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 58,133 shares of company stock worth $1,442,313. 0.45% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Gentex

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Bank of Montreal Can increased its holdings in Gentex by 14,398.7% in the 4th quarter. Bank of Montreal Can now owns 7,726,057 shares of the auto parts company's stock valued at $179,785,000 after purchasing an additional 7,672,769 shares in the last quarter. Caisse de depot et placement du Quebec lifted its stake in shares of Gentex by 297.0% during the fourth quarter. Caisse de depot et placement du Quebec now owns 3,144,881 shares of the auto parts company's stock worth $73,181,000 after purchasing an additional 2,352,668 shares in the last quarter. Wellington Management Group LLP boosted its position in shares of Gentex by 10.3% in the third quarter. Wellington Management Group LLP now owns 14,828,120 shares of the auto parts company's stock worth $419,636,000 after buying an additional 1,383,203 shares during the period. Dimensional Fund Advisors LP grew its stake in shares of Gentex by 25.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 6,629,380 shares of the auto parts company's stock valued at $154,271,000 after buying an additional 1,349,445 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its stake in shares of Gentex by 118.1% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,460,139 shares of the auto parts company's stock valued at $57,247,000 after buying an additional 1,331,998 shares in the last quarter. Institutional investors and hedge funds own 86.76% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have weighed in on GNTX. B. Riley Financial cut their price target on Gentex from $32.00 to $28.00 and set a "buy" rating for the company in a report on Monday, February 2nd. Freedom Capital raised Gentex to a "strong-buy" rating in a research note on Friday, March 27th. JPMorgan Chase & Co. lowered their price target on Gentex from $28.00 to $27.00 and set a "neutral" rating for the company in a report on Thursday. UBS Group reaffirmed a "neutral" rating and set a $24.00 price objective (down from $25.00) on shares of Gentex in a research note on Tuesday, April 14th. Finally, Robert W. Baird set a $26.00 target price on shares of Gentex in a research report on Wednesday, January 14th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $26.17.

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).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.