The Case for and Against Gentex Corporation (GNTX)

Gentex Corporation (GNTX) is an interesting player in the Consumer Goods space, with a focus on Auto Parts. The stock has been active on the tape, currently trading at $23.36, up from yesterday’s close by 0.47%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Gentex Corporation (GNTX) currently trades with a market capitalization of $6.55 Billion. That value represents a market adjusting for revenues that have been growing by 9.44 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $355.43 Million over the past twelve months. Generally speaking, earnings are expected to hold steady in coming quarters. Analysts are forecasting earnings of $0.4 on a per share basis this quarter. Perhaps, that suggests something about why 2.18% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Gentex Corporation recorded a 52-week high of $24.07. It is now trading 0.71% off that level. The stock is trading $22.60 its 50-day moving average by -0.76%. The stock carved out a 52-week low down at $16.59.

In recent action, Gentex Corporation (GNTX) has made a move of +5.37% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.8, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 3.81% with $277.39 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of GNTX.

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