Zacks Research Upgrades Gentex (NASDAQ:GNTX) to "Strong-Buy"

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 equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Wednesday,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 analysts have also recently issued research reports about the company. Wall Street Zen raised Gentex from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Guggenheim dropped their price target on Gentex from $30.00 to $24.00 and set a "buy" rating for the company in a research report on Tuesday, April 22nd. Robert W. Baird raised their price objective on Gentex from $26.00 to $30.00 and gave the company a "neutral" rating in a report on Monday, July 28th. Industrial Alliance Securities set a $25.00 target price on shares of Gentex in a research note on Friday, July 11th. Finally, B. Riley increased their target price on shares of Gentex from $28.00 to $32.00 and gave the company a "buy" rating in a research report 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 stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $28.63.

Gentex Stock Up 0.1%

GNTX opened at $27.41 on Wednesday. The firm's fifty day simple moving average is $24.36 and its two-hundred day simple moving average is $23.45. Gentex has a 52-week low of $20.28 and a 52-week high of $31.75. The company has a market cap of $6.02 billion, a price-to-earnings ratio of 15.49 and a beta of 0.82.

Gentex (NASDAQ:GNTX - Get Free Report) last released its earnings results on Friday, July 25th. The auto parts company reported $0.47 EPS for the quarter, topping analysts' consensus estimates of $0.39 by $0.08. The business had revenue of $657.86 million during the quarter, compared to analysts' expectations 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 in the previous year, the company earned $0.37 earnings per share. Gentex has set its FY 2025 guidance at EPS. On average, research analysts forecast that Gentex will post 2.04 EPS for the current year.

Gentex announced that its board has initiated a stock buyback program on Wednesday, July 16th that permits the company to buyback 40,000,000 shares. This buyback authorization permits the auto parts company to purchase shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in GNTX. Northwestern Mutual Wealth Management Co. boosted its position in Gentex by 4.6% in the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 11,875 shares of the auto parts company's stock valued at $277,000 after buying an additional 521 shares during the period. Orion Porfolio Solutions LLC boosted its holdings in Gentex by 4.5% in the second quarter. Orion Porfolio Solutions LLC now owns 13,025 shares of the auto parts company's stock valued at $286,000 after purchasing an additional 562 shares during the period. Whittier Trust Co. of Nevada Inc. grew its stake 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 worth $28,000 after purchasing an additional 563 shares in the last quarter. State of Michigan Retirement System increased its holdings in Gentex by 1.1% during the 1st quarter. State of Michigan Retirement System now owns 54,440 shares of the auto parts company's stock worth $1,268,000 after purchasing an additional 600 shares during the period. Finally, Louisiana State Employees Retirement System raised its position in Gentex by 1.0% in the 1st quarter. Louisiana State Employees Retirement System now owns 63,700 shares of the auto parts company's stock valued at $1,484,000 after purchasing an additional 600 shares in the last quarter. 86.76% of the stock is currently owned by institutional investors and hedge funds.

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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