Is it smart to be bullish on Gentex Corporation (NASDAQ:GNTX)?
At the moment, there are tons of methods market participants can use to track the equity markets. Two of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can trounce the S&P 500 by a significant amount (see just how much).
Equally as crucial, bullish insider trading sentiment is another way to analyze the world of equities. Just as you’d expect, there are plenty of reasons for a corporate insider to downsize shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the valuable potential of this method if “monkeys” understand what to do (learn more here).
Furthermore, it’s important to examine the latest info about Gentex Corporation (NASDAQ:GNTX).
What does the smart money think about Gentex Corporation (NASDAQ:GNTX)?
In preparation for the third quarter, a total of 17 of the hedge funds we track were long in this stock, a change of 31% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their stakes considerably.
With a general bullishness amongst the titans, certain money managers were breaking ground themselves. Royce & Associates, managed by Chuck Royce, initiated the most valuable position in Gentex Corporation (NASDAQ:GNTX). Royce & Associates had 77.2 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $24.3 million investment in the stock during the quarter. The other funds with brand new GNTX positions are Phill Gross and Robert Atchinson’s Adage Capital Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Bill Miller’s Legg Mason Capital Management.
What have insiders been doing with Gentex Corporation (NASDAQ:GNTX)?
Legal insider trading, particularly when it’s bullish, is most useful when the company we’re looking at has seen transactions within the past 180 days. Over the last six-month time frame, Gentex Corporation (NASDAQ:GNTX) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Gentex Corporation (NASDAQ:GNTX). These stocks are Allison Transmission Holdings Inc (NYSE:ALSN), WABCO Holdings Inc. (NYSE:WBC), Tenneco Inc (NYSE:TEN), Dana Holding Corporation (NYSE:DAN), and Visteon Corp (NYSE:VC). All of these stocks are in the auto parts industry and their market caps are similar to GNTX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Allison Transmission Holdings Inc (NYSE:ALSN) | 7 | 0 | 0 |
| WABCO Holdings Inc. (NYSE:WBC) | 33 | 0 | 0 |
| Tenneco Inc (NYSE:TEN) | 20 | 0 | 0 |
| Dana Holding Corporation (NYSE:DAN) | 34 | 0 | 0 |
| Visteon Corp (NYSE:VC) | 41 | 0 | 0 |
Using the results shown by the previously mentioned analyses, regular investors should always pay attention to hedge fund and insider trading activity, and Gentex Corporation (NASDAQ:GNTX) applies perfectly to this mantra.
