Are Gentex Officials Privy To Insider Information?
Shares of Gentex Corporation (NASDAQ:GNTX) fell sharply on Tuesday after the company, which manufactures components for automobiles and aircraft, announced it would cut shipments and posted a lower margin in its quarterly report.
What's more, recent insider trading reports show there was heavy trading in the days leading up to the announcement, indicating there may be even more problems that are not visible to the public.
According to CBS News, the company announced that four of its customers will alter where they install their vehicle rear camera displays, which will lead to lower shipments in 2013 and 2014. Gentex also said it will need to lower its estimates for its shipments of SmartBeam products after light vehicle production in Europe fell in the second quarter.
According to Bloomberg, gross margins dropped to 33.1 percent from 35.3 percent in the same period a year earlier.
"The gross profit margin will continue to be impacted by annual customer price reductions, ... supply chain constraints, and manufacturing yields," said CGO Steven Dykman.
In the last three months, company insiders have sold a total of $167,000 worth of shares valued at $23.08 each.
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