Gentex (NASDAQ:GNTX) Sees Large Volume Increase After Analyst Upgrade

Key Points

• Gentex Corporation (NASDAQ:GNTX) experienced a 150% increase in trading volume after JPMorgan Chase raised its price target from $30 to $32, with the stock last trading at $26.20.
• Multiple research firms have issued varying outlooks on Gentex, with the consensus rating being a "Hold" and an average price target of $29.14.
• The company recently announced a quarterly dividend of $0.12 per share and has authorized a stock buyback program for up to 40 million shares, indicating management believes the stock is undervalued.

Gentex Corporation (NASDAQ:GNTX - Get Free Report) shares saw unusually-high trading volume on Monday after JPMorgan Chase & Co. raised their price target on the stock from $30.00 to $32.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Approximately 5,674,324 shares were traded during mid-day trading, an increase of 150% from the previous session's volume of 2,271,644 shares.The stock last traded at $26.20 and had previously closed at $26.01.

Several other research firms have also recently issued reports on GNTX. The Goldman Sachs Group set a $32.00 price objective on shares of Gentex in a research report on Monday, September 29th. B. Riley increased their price objective on Gentex from $28.00 to $32.00 and gave the company a "buy" rating in a report on Monday, July 28th. Zacks Research lowered Gentex from a "strong-buy" rating to a "hold" rating in a research report on Friday, September 19th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Gentex in a report on Wednesday, October 8th. Finally, UBS Group reiterated a "neutral" rating and issued a $29.00 price target (up from $28.00) on shares of Gentex in a research note on Monday, October 6th. Two equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $29.14.

Institutional Trading of Gentex

Several institutional investors and hedge funds have recently added to or reduced their stakes in GNTX. Larson Financial Group LLC grew its position in Gentex by 1,471.0% in the 1st quarter. Larson Financial Group LLC now owns 1,084 shares of the auto parts company's stock valued at $25,000 after buying an additional 1,015 shares during the last quarter. Addison Advisors LLC purchased a new stake in shares of Gentex in the second quarter valued at about $25,000. Brooklyn Investment Group raised its holdings in Gentex by 305.7% during the first quarter. Brooklyn Investment Group now owns 1,217 shares of the auto parts company's stock worth $28,000 after purchasing an additional 917 shares in the last quarter. Whittier Trust Co. of Nevada Inc. boosted its holdings in Gentex by 85.4% in the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 1,222 shares of the auto parts company's stock valued at $28,000 after purchasing an additional 563 shares in the last quarter. Finally, State of Wyoming acquired a new position in Gentex during the 1st quarter worth approximately $45,000. 86.76% of the stock is owned by hedge funds and other institutional investors.

Gentex Trading Up 1.7%

The firm has a market capitalization of $5.80 billion, a PE ratio of 14.94 and a beta of 0.84. The business has a 50 day moving average price of $27.72 and a 200-day moving average price of $24.41.

Gentex (NASDAQ:GNTX - Get Free Report) last announced its quarterly earnings data on Friday, July 25th. The auto parts company reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates of $0.39 by $0.08. Gentex had a return on equity of 16.86% and a net margin of 16.82%.The firm had revenue of $657.86 million for the quarter, compared to analyst estimates of $591.94 million. During the same quarter in the prior year, the company posted $0.37 earnings per share. Gentex's quarterly revenue was up 14.8% on a year-over-year basis. Gentex has set its FY 2025 guidance at EPS. On average, equities research analysts forecast that Gentex Corporation 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. Shareholders of record on Wednesday, October 8th will be given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 1.8%. The ex-dividend date is Wednesday, October 8th. Gentex's dividend payout ratio is presently 27.12%.

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

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.

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.