Gentex (NASDAQ:GNTX) Sets New 52-Week Low After Earnings Miss

Key Points

• Gentex shares fell to a new 52-week low of $19.95 after the company missed quarterly earnings and revenue expectations. EPS was $0.47 versus the $0.50 consensus, while revenue of $647.71 million declined 1.1% year over year and fell short of estimates.
• Gentex declared a quarterly dividend of $0.12, equivalent to $0.48 annually and a 2.3% yield; its payout ratio is 25.4%.
• Analyst sentiment is cautious, with a consensus “Hold” rating from one Buy, five Hold, and one Sell rating. The average price target is $25.20, although several firms recently lowered their targets.

Shares of Gentex Corporation (NASDAQ:GNTX - Get Free Report) hit a new 52-week low on Friday following a weaker than expected earnings announcement. The stock traded as low as $19.95 and last traded at $20.3380, with a volume of 19,649 shares trading hands. The stock had previously closed at $21.74.

The auto parts company reported $0.47 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.50 by ($0.03). Gentex had a net margin of 15.50% and a return on equity of 16.78%. The company had revenue of $647.71 million during the quarter, compared to analyst estimates of $669.69 million. During the same quarter last year, the business posted $0.46 EPS. Gentex's quarterly revenue was down 1.1% compared to the same quarter last year.

Gentex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 21st. Investors of record on Wednesday, October 7th were issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend was Wednesday, October 7th. Gentex's dividend payout ratio is 25.40%.

Analyst Ratings Changes

Several brokerages have recently issued reports on GNTX. JPMorgan Chase & Co. lowered their price objective on shares of Gentex from $28.00 to $27.00 and set a "neutral" rating on the stock in a research note on Monday, August 10th. UBS Group dropped their target price on shares of Gentex from $25.00 to $24.00 and set a "neutral" rating for the company in a research report on Wednesday, October 7th. Wall Street Zen lowered Gentex from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. The Goldman Sachs Group lowered Gentex from a "neutral" rating to a "sell" rating and lowered their price objective for the stock from $23.00 to $20.00 in a research report on Tuesday, October 6th. Finally, Weiss Ratings lowered Gentex from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, October 8th. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Gentex currently has a consensus rating of "Hold" and a consensus price target of $25.20.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Anchor Investment Management LLC acquired a new position in shares of Gentex in the first quarter valued at approximately $26,000. AdvisorNet Financial Inc raised its holdings in Gentex by 2,299.0% in the 1st quarter. AdvisorNet Financial Inc now owns 2,399 shares of the auto parts company's stock valued at $52,000 after acquiring an additional 2,299 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Gentex during the 2nd quarter valued at $54,000. North Point Portfolio Managers Corp OH acquired a new position in Gentex in the third quarter valued at about $55,000. Finally, Versant Capital Management Inc grew its stake in Gentex by 28.7% during the second quarter. Versant Capital Management Inc now owns 2,698 shares of the auto parts company's stock worth $68,000 after buying an additional 602 shares in the last quarter. 86.76% of the stock is owned by institutional investors and hedge funds.

Gentex Stock Performance

The stock has a market capitalization of $4.41 billion, a P/E ratio of 10.76 and a beta of 0.86. The firm's fifty day simple moving average is $22.32 and its 200 day simple moving average is $23.30.

About Gentex

Gentex Corporation NASDAQ: GNTX is a technology manufacturer headquartered in Zeeland, Michigan. Founded in 1974, the company develops products primarily for the automotive industry, along with selected applications in the aerospace and fire-protection markets.

Gentex is best known for its automatic-dimming rearview and side-view mirrors, which use electrochromic technology to reduce glare. Its automotive product portfolio also includes camera-based driver-assistance systems, digital vision and sensing technologies, connected-car products, overhead console systems, and HomeLink universal garage-door and home-control systems.

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