Gentex Corporation (NASDAQ:GNTX) is engaged in designing, developing, manufacturing, and marketing automatic-dimming rearview mirrors and electronics for the automotive industry; variable dimmable aircraft windows for the aviation industry; and commercial smoke alarms and signaling devices for the fire protection industry worldwide.
Insider selling during the last 30 days
Here is a table of Gentex's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Kevin Nash||CAO||May 2-5||6,728||No||6,975 shares + 8,365 options||30.5%|
|Steven Downing||CFO||May 2||1,750||No||15,475 shares||10.2%|
|Mark Newton||SVP||April 30||34,674||No||43,060 shares + 33,264 options||31.2%|
There have been 43,152 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Gentex's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 566,324 shares sold, and there have been zero shares purchased by insiders since January 2013.
Gentex reported the first-quarter financial results on April 23 with the following highlights:
|Net income||$68.6 million|
The three insiders sold their shares after these results.
Gentex's second-quarter guidance is as follows:
|Gross profit margin||39%-39.5%|
|Qtrly Rev Growth (yoy):||0.25||0.14|
|PEG (5 yr expected):||1.29||0.83|
Gentex has a higher P/S ratio than Magna International. In Magna International, there have been 476,588 shares sold, and there have been 963 shares purchased by insiders this year. Only Gentex has seen intensive insider selling during the last 30 days.
There have been three different insiders selling Gentex, and there have not been any insiders buying Gentex during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Gentex has an insider ownership of 3.08%.
Gentex has a $22 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $22 price target. I would place a stop loss at $35, which is the all-time high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, relatively high P/S ratio, and the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in GNTX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.