Gentex (NASDAQ:GNTX) Shares Gap Up Following Strong Earnings

Key Points

• Gentex beat estimates with Q EPS of $0.48 vs. $0.44 expected and revenue of $675.44M (+17.1% YoY); the stock gapped up premarket (prior close $23.03, opened $24.43) and was last near $23.73, up about 3.5%.
• Gentex paid a quarterly dividend of $0.12 (annualized $0.48) for a yield of 2.0% and a dividend payout ratio of 27.59%, with the payment made April 22 and an ex-dividend/record date of April 8.
• Analysts are mixed—MarketBeat shows a consensus "Hold" with a $26.17 average price target amid several target downgrades and upgrades—meanwhile insiders sold ~58,133 shares last quarter and institutional ownership stands high at 86.76%.

Shares of Gentex Corporation (NASDAQ:GNTX - Get Free Report) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $23.03, but opened at $24.43. Gentex shares last traded at $23.7280, with a volume of 372,557 shares traded.

The auto parts company reported $0.48 EPS for the quarter, topping the consensus estimate of $0.44 by $0.04. The company had revenue of $675.44 million during the quarter, compared to analyst estimates of $649.42 million. Gentex had a return on equity of 16.05% and a net margin of 15.19%.The business's revenue was up 17.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.42 EPS.

Gentex Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 22nd. Stockholders of record on Wednesday, April 8th were given a $0.12 dividend. The ex-dividend date was Wednesday, April 8th. This represents a $0.48 annualized dividend and a dividend yield of 2.0%. Gentex's dividend payout ratio (DPR) is presently 27.59%.

Analysts Set New Price Targets

Several brokerages have weighed in on GNTX. B. Riley Financial cut their target price on Gentex from $32.00 to $28.00 and set a "buy" rating on the stock in a research note on Monday, February 2nd. Wall Street Zen upgraded Gentex from a "hold" rating to a "buy" rating in a report on Sunday, March 8th. Freedom Capital upgraded Gentex to a "strong-buy" rating in a report on Friday, March 27th. UBS Group restated a "neutral" rating and issued a $24.00 target price (down from $25.00) on shares of Gentex in a report on Tuesday, April 14th. Finally, JPMorgan Chase & Co. decreased their target price on Gentex from $28.00 to $27.00 and set a "neutral" rating on the stock in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, Gentex currently has an average rating of "Hold" and a consensus price target of $26.17.

Insider Transactions at Gentex

In other news, CTO Neil Boehm sold 11,248 shares of the firm's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $24.82, for a total value of $279,175.36. Following the completion of the sale, the chief technology officer owned 58,951 shares of the company's stock, valued at $1,463,163.82. This trade represents a 16.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Kevin C. Nash sold 11,885 shares of the firm's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $24.98, for a total value of $296,887.30. Following the completion of the sale, the chief financial officer directly owned 59,430 shares of the company's stock, valued at approximately $1,484,561.40. This trade represents a 16.67% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 58,133 shares of company stock valued at $1,442,313 over the last quarter. Company insiders own 0.45% of the company's stock.

Institutional Trading of Gentex

A number of institutional investors have recently bought and sold shares of GNTX. Bank of Montreal Can boosted its position in Gentex by 14,398.7% during the fourth 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 during the last quarter. Caisse de depot et placement du Quebec lifted its position in shares of Gentex by 297.0% in 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 buying an additional 2,352,668 shares during the last quarter. Norges Bank acquired a new stake in shares of Gentex in the fourth quarter worth about $52,767,000. Wellington Management Group LLP lifted 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 last quarter. Finally, Dimensional Fund Advisors LP lifted its position 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 worth $154,271,000 after buying an additional 1,349,445 shares during the last quarter. Institutional investors and hedge funds own 86.76% of the company's stock.

Gentex Stock Up 3.5%

The business has a 50-day simple moving average of $22.37 and a two-hundred day simple moving average of $23.38. The company has a market cap of $5.09 billion, a price-to-earnings ratio of 13.67 and a beta of 0.77.

Gentex Company Profile

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).

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