Auto supplier approves $425M share buyback
An automotive supplier in the region is planning to buy back up to $425 million of its shares in the 2018 calendar year.
Zeeland-based Gentex said this month its board of directors approved a share repurchase authorization of 20 million shares, in addition to shares previously authorized for repurchase.
Companies typically issue stock repurchase plans when they believe their shares are undervalued, according to Stock News Times.
Gentex said it may vary from the targeted level of share repurchases in the current year, depending on macroeconomic issues, overall market trends and the anti-dilutive impact of share repurchases.
Steve Downing, president and CEO of Gentex, said the buyback is just one part of the plan to grow the company and return value to shareholders.
“We are looking forward to the rest of 2018, where our strategy will be to use 100 percent of cash flow for investing in the business, paying down debt, increasing dividends and significantly increasing our share repurchase program, all of which will help us achieve the new targeted total cash position,” Downing said.
For the year ended Dec. 31, 2017, the company repurchased 12 million shares of its common stock at an average price of $19.35 per share.
Founded in 1974, Gentex Corporation (Nasdaq: GNTX) is a supplier of automatic-dimming rearview mirrors and electronics for the automotive industry, dimmable aircraft windows for aviation industry and products for the fire-protection industry.