Zacks Investment Research Upgrades Gentex (GNTX) to Buy

Share on StockTwits

Zacks Investment Research upgraded shares of Gentex (NASDAQ:GNTX) from a hold rating to a buy rating in a report issued on Thursday morning, Zacks.com reports. Zacks Investment Research currently has $25.00 price target on the auto parts company’s stock.

According to Zacks, “In first-quarter 2019, Gentex’s earnings and revenues surpassed the Zacks Consensus Estimate. Revenues also improved year over year during the quarter. The company aims to attain long-term growth, driven by robust product launches, better mix and unique technology platforms. It pursues an aggressive capital-deployment strategy. Also, rising demand for its dimmable devices is adding to its growth momentum. However, high operating expenses, and pricing pressure from automotive customers and competitors are concerns for Gentex.”

A number of other equities research analysts also recently issued reports on GNTX. Wells Fargo & Co reiterated a buy rating on shares of Gentex in a research report on Wednesday, January 30th. BidaskClub downgraded shares of Gentex from a buy rating to a hold rating in a research report on Saturday, February 2nd. Jefferies Financial Group reiterated a hold rating and set a $23.00 price target on shares of Gentex in a research report on Monday, February 4th. Longbow Research downgraded shares of Gentex from a buy rating to a neutral rating and set a $20.65 price target for the company. in a research report on Tuesday, February 5th. Finally, ValuEngine downgraded shares of Gentex from a hold rating to a sell rating in a research report on Thursday, February 14th. Seven analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. The company has an average rating of Hold and a consensus target price of $22.28.

Shares of GNTX stock traded up $0.01 during midday trading on Thursday, reaching $22.20. 33,229 shares of the company traded hands, compared to its average volume of 1,410,394. Gentex has a 1-year low of $17.80 and a 1-year high of $25.41. The company has a market cap of $5.67 billion, a price-to-earnings ratio of 13.70, a PEG ratio of 2.24 and a beta of 1.14.

Gentex (NASDAQ:GNTX) last posted its quarterly earnings results on Wednesday, April 24th. The auto parts company reported $0.40 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.39 by $0.01. Gentex had a net margin of 23.45% and a return on equity of 23.03%. The company had revenue of $468.60 million during the quarter, compared to the consensus estimate of $463.79 million. During the same period last year, the firm earned $0.40 EPS. The company’s revenue for the quarter was up .7% on a year-over-year basis. As a group, equities research analysts expect that Gentex will post 1.64 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 24th. Investors of record on Wednesday, April 10th were given a dividend of $0.115 per share. This is an increase from Gentex’s previous quarterly dividend of $0.11. This represents a $0.46 annualized dividend and a dividend yield of 2.07%. The ex-dividend date was Tuesday, April 9th. Gentex’s payout ratio is currently 28.40%.

In related news, Director Gary F. Goode sold 5,045 shares of Gentex stock in a transaction that occurred on Monday, April 29th. The stock was sold at an average price of $23.20, for a total transaction of $117,044.00. Following the completion of the transaction, the director now directly owns 21,045 shares in the company, valued at approximately $488,244. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Matthew Chiodo sold 3,000 shares of Gentex stock in a transaction that occurred on Monday, March 18th. The stock was sold at an average price of $20.82, for a total value of $62,460.00. Following the transaction, the vice president now owns 34,454 shares of the company’s stock, valued at $717,332.28. The disclosure for this sale can be found here. Over the last 90 days, insiders have purchased 2,009 shares of company stock valued at $35,318 and have sold 10,731 shares valued at $235,427. Insiders own 0.37% of the company’s stock.

Institutional investors have recently modified their holdings of the stock. BlackRock Inc. raised its holdings in Gentex by 0.9% in the 4th quarter. BlackRock Inc. now owns 24,277,225 shares of the auto parts company’s stock valued at $490,643,000 after acquiring an additional 227,469 shares during the last quarter. Vanguard Group Inc grew its stake in shares of Gentex by 1.1% during the 3rd quarter. Vanguard Group Inc now owns 24,110,056 shares of the auto parts company’s stock valued at $517,401,000 after buying an additional 272,847 shares during the period. Dimensional Fund Advisors LP grew its stake in shares of Gentex by 3.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,308,565 shares of the auto parts company’s stock valued at $130,461,000 after buying an additional 189,244 shares during the period. Maj Invest Holding A S grew its stake in shares of Gentex by 10.5% during the 1st quarter. Maj Invest Holding A S now owns 4,206,037 shares of the auto parts company’s stock valued at $86,980,000 after buying an additional 400,743 shares during the period. Finally, Geode Capital Management LLC grew its stake in shares of Gentex by 8.3% during the 4th quarter. Geode Capital Management LLC now owns 3,950,871 shares of the auto parts company’s stock valued at $79,846,000 after buying an additional 303,378 shares during the period. Hedge funds and other institutional investors own 86.81% of the company’s stock.

Gentex Company Profile

Gentex Corporation provides digital vision, connected car, dimmable glass, and fire protection products worldwide. It designs, develops, manufactures, and markets 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, tier one automotive mirror manufacturers, and various aftermarket and accessory customers.

Further Reading: What is the price-sales ratio?

Get a free copy of the Zacks research report on Gentex (GNTX)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Gentex (NASDAQ:GNTX)

Receive News & Ratings for Gentex Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gentex and related companies with MarketBeat.com's FREE daily email newsletter.