Gentex (NASDAQ:GNTX) Shares Gap Down on Disappointing Earnings

Key Points

• Gentex Corporation shares fell sharply from $26.32 to $25.45 after the company reported weaker than expected quarterly earnings, with earnings per share of $0.46, falling short of estimates by $0.01.
• The company announced a $0.12 quarterly dividend, representing a 2.0% annual yield, alongside a stock buyback plan allowing repurchase of up to 40 million shares.
• Despite the earnings miss, analysts maintain a consensus rating of "Hold"** on Gentex, with target prices ranging from $28.00 to $32.00.

Gentex Corporation (NASDAQ:GNTX - Get Free Report) shares gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $26.32, but opened at $25.45. Gentex shares last traded at $24.24, with a volume of 949,857 shares traded.

The auto parts company reported $0.46 earnings per share for the quarter, missing analysts' consensus estimates of $0.47 by ($0.01). Gentex had a return on equity of 16.86% and a net margin of 16.82%.The firm's revenue for the quarter was up 7.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.53 EPS. Gentex has set its FY 2025 guidance at EPS.

Gentex Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 22nd. Shareholders of record on Wednesday, October 8th were paid a $0.12 dividend. The ex-dividend date was Wednesday, October 8th. This represents a $0.48 annualized dividend and a yield of 2.0%. Gentex's dividend payout ratio is currently 27.12%.

Gentex declared that its Board of Directors has approved a stock buyback plan on Wednesday, July 16th that permits the company to repurchase 40,000,000 shares. This repurchase authorization permits the auto parts company to repurchase shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. Zacks Research lowered Gentex from a "strong-buy" rating to a "hold" rating in a research note on Friday, September 19th. The Goldman Sachs Group set a $32.00 target price on Gentex in a report on Monday, September 29th. Robert W. Baird boosted their price objective on shares of Gentex from $26.00 to $30.00 and gave the company a "neutral" rating in a research report on Monday, July 28th. Weiss Ratings reissued a "hold (c)" rating on shares of Gentex in a research note on Wednesday, October 8th. Finally, B. Riley boosted their target price on shares of Gentex from $28.00 to $32.00 and gave the company a "buy" rating in a report on Monday, July 28th. Two analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, Gentex has a consensus rating of "Hold" and an average target price of $29.14.

Institutional Investors Weigh In On Gentex

Large investors have recently added to or reduced their stakes in the stock. Larson Financial Group LLC lifted its stake in shares of Gentex by 1,471.0% during the 1st quarter. Larson Financial Group LLC now owns 1,084 shares of the auto parts company's stock worth $25,000 after acquiring an additional 1,015 shares during the last quarter. Addison Advisors LLC purchased a new stake in Gentex during the second quarter valued at approximately $25,000. Whittier Trust Co. of Nevada Inc. increased its position in Gentex by 85.4% during 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 buying an additional 563 shares in the last quarter. Brooklyn Investment Group grew its position in Gentex by 305.7% during the 1st 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 during the last quarter. Finally, State of Wyoming purchased a new position in Gentex in the 1st quarter worth $45,000. 86.76% of the stock is owned by institutional investors.

Gentex Stock Performance

The company has a market cap of $5.29 billion, a price-to-earnings ratio of 13.65 and a beta of 0.84. The company's fifty day moving average is $27.65 and its two-hundred day moving average is $24.51.

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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