Gentex (NASDAQ:GNTX) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Gentex from a "hold" rating to a "strong-buy," reflecting increased confidence in the company's future performance.
• Gentex reported earnings of $0.47 per share for the last quarter, exceeding analyst expectations, alongside a year-over-year revenue increase of 14.8%.
• The company has initiated a stock buyback program allowing the repurchase of up to 40 million shares, indicating management's belief that the stock is undervalued.

Gentex (NASDAQ:GNTX - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Wednesday, August 20th,Zacks.com reports. Zacks Research also issued estimates for Gentex's Q4 2025 earnings at $0.44 EPS, Q1 2026 earnings at $0.46 EPS, Q2 2026 earnings at $0.49 EPS, Q3 2026 earnings at $0.50 EPS, FY2026 earnings at $1.93 EPS, Q1 2027 earnings at $0.52 EPS, Q2 2027 earnings at $0.54 EPS and FY2027 earnings at $2.13 EPS.

Other equities research analysts have also issued research reports about the stock. Industrial Alliance Securities set a $25.00 price target on shares of Gentex in a research report on Friday, July 11th. UBS Group upped their price target on Gentex from $23.00 to $28.00 and gave the stock a "neutral" rating in a research note on Monday, July 28th. The Goldman Sachs Group reiterated a "neutral" rating on shares of Gentex in a research report on Friday, July 11th. Wall Street Zen upgraded Gentex from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Finally, B. Riley increased their target price on Gentex from $28.00 to $32.00 and gave the stock a "buy" rating in a research note on Monday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $28.63.

Gentex Price Performance

Shares of GNTX stock traded up $0.22 on Wednesday, hitting $28.50. The stock had a trading volume of 560,594 shares, compared to its average volume of 2,291,924. Gentex has a 12-month low of $20.28 and a 12-month high of $31.72. The business has a 50 day moving average of $24.75 and a 200 day moving average of $23.50. The stock has a market cap of $6.25 billion, a price-to-earnings ratio of 16.09 and a beta of 0.82.

Gentex (NASDAQ:GNTX - Get Free Report) last issued its earnings results 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. The firm had revenue of $657.86 million during the quarter, compared to analyst estimates of $591.94 million. Gentex had a net margin of 16.82% and a return on equity of 16.86%. The company's quarterly revenue was up 14.8% on a year-over-year basis. During the same quarter last year, the business earned $0.37 earnings per share. Gentex has set its FY 2025 guidance at EPS. As a group, research analysts expect that Gentex will post 2.04 earnings per share for the current fiscal year.

Gentex announced that its Board of Directors has authorized a stock buyback 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 buy shares of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in GNTX. Vanguard Group Inc. grew its stake in Gentex by 4.1% during the 1st quarter. Vanguard Group Inc. now owns 22,581,938 shares of the auto parts company's stock worth $526,159,000 after buying an additional 886,785 shares during the last quarter. Burgundy Asset Management Ltd. lifted its position in shares of Gentex by 3.1% in the second quarter. Burgundy Asset Management Ltd. now owns 7,964,555 shares of the auto parts company's stock valued at $175,141,000 after acquiring an additional 236,346 shares in the last quarter. JPMorgan Chase & Co. lifted its position in shares of Gentex by 46.2% in the first quarter. JPMorgan Chase & Co. now owns 7,673,701 shares of the auto parts company's stock valued at $178,797,000 after acquiring an additional 2,424,471 shares in the last quarter. State Street Corp increased its stake in Gentex by 1.0% in the second quarter. State Street Corp now owns 7,439,333 shares of the auto parts company's stock valued at $163,591,000 after purchasing an additional 74,779 shares during the last quarter. Finally, Ariel Investments LLC increased its stake in Gentex by 3.9% in the second quarter. Ariel Investments LLC now owns 7,359,272 shares of the auto parts company's stock valued at $161,830,000 after purchasing an additional 277,217 shares during the last quarter. Hedge funds and other institutional investors own 86.76% of the company's stock.

About Gentex

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.