Gentherm Inc (THRM) – What Are Investment Firms Thinking About This Stock?

Gentherm Inc (NASDAQ:THRM) has been assigned an average rating of “Hold” from the ten ratings firms that are currently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, four have given a hold recommendation and five have issued a buy recommendation on the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $43.57.

Several research firms recently commented on THRM. Wall Street Zen lowered shares of Gentherm from a “buy” rating to a “hold” rating in a research note on Saturday. Freedom Broker raised shares of Gentherm from a “hold” rating to a “buy” rating and set a $40.00 target price for the company in a research report on Tuesday. CJS Securities initiated coverage on shares of Gentherm in a research note on Monday, September 14th. They issued an “outperform” rating and a $50.00 target price for the company. JPMorgan Chase & Co. cut their price target on shares of Gentherm from $48.00 to $47.00 and set an “overweight” rating on the stock in a report on Friday, October 23rd. Finally, Zacks Research lowered shares of Gentherm from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th.

Gentherm Trading Up 11.3%

Shares of Gentherm stock opened at $31.82 on Wednesday. The company has a 50-day simple moving average of $35.10 and a two-hundred day simple moving average of $34.13. Gentherm has a one year low of $25.31 and a one year high of $48.35.

Gentherm (NASDAQ:THRM) last released its quarterly earnings results on Thursday, October 22nd. The auto parts company reported $0.33 EPS for the quarter, missing the consensus estimate of $0.64 by ($0.31). The business had revenue of $405.10 million for the quarter, compared to analyst estimates of $404.16 million. During the same period last year, the firm posted $0.73 earnings per share. The business’s revenue was up 4.7% on a year-over-year basis. As a group, sell-side analysts anticipate that Gentherm will post 2.70 earnings per share for the current year.

Gentherm Dividend Announcement

The firm also recently disclosed a special dividend, which was paid on Wednesday, October 7th. Stockholders of record on Monday, September 28th were given a $1.90 dividend.

Gentherm announced that its board has authorized a share buyback program on Thursday, July 23rd that allows the company to repurchase $400 million in outstanding shares. This repurchase authorization allows the auto parts company to repurchase up to 36.2% of its stock through open market purchases. Share repurchase programs are usually a sign that the company’s board believes its shares are undervalued.

Key Gentherm News

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Freedom Broker upgraded Gentherm from “hold” to “buy” and set a $40 price target, implying approximately 25.7% upside from the reported $31.82 level. The upgrade provides a fresh catalyst after the stock’s recent weakness. Freedom Broker analyst rating
• Positive Sentiment: Company insiders bought a combined 25,000 shares. CEO William Presley purchased 5,000 shares for $130,000, increasing his position by 2.8%, while Director Paul Anthony Mascarenas acquired 20,000 shares valued at $532,600. Insider buying can signal that management and directors view the recent share-price decline as an attractive entry point. Gentherm insider buying report
• Neutral Sentiment: Recent institutional activity was generally supportive, with BlackRock, Bank of America, Deutsche Bank and Walleye Capital establishing positions and Renaissance Technologies increasing its stake. Institutional ownership is reported at approximately 97%, though these purchases occurred in earlier quarters and may not represent immediate trading activity.
• Negative Sentiment: Gentherm’s latest quarterly results remain a concern: EPS was $0.33 versus the $0.64 consensus estimate, while revenue of $405.1 million was only modestly above expectations. Profitability also weakened sharply from the prior-year period, with net margin at 0.57% and EPS down from $0.73. Analysts currently expect $2.89 in full-year EPS, and the stock’s valuation remains demanding at more than 100 times earnings.

Insider Buying and Selling at Gentherm

In other Gentherm news, CEO William T. Presley purchased 5,000 shares of the firm’s stock in a transaction on Friday, October 23rd. The stock was bought at an average cost of $26.00 per share, for a total transaction of $130,000.00. Following the completion of the purchase, the chief executive officer owned 183,314 shares in the company, valued at $4,766,164. This represents a 2.80% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Paul Anthony Mascarenas purchased 20,000 shares of the stock in a transaction on Friday, October 23rd. The stock was acquired at an average cost of $26.63 per share, with a total value of $532,600.00. Following the acquisition, the director owned 22,677 shares of the company’s stock, valued at approximately $603,888.51. This represents a 747.10% increase in their position. The SEC filing for this purchase provides additional information. 2.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Gentherm

Several hedge funds and other institutional investors have recently modified their holdings of THRM. Meeder Asset Management Inc. purchased a new stake in Gentherm during the 2nd quarter worth approximately $30,000. Allworth Financial LP acquired a new position in Gentherm during the 2nd quarter valued at approximately $37,000. Public Employees Retirement System of Ohio purchased a new position in shares of Gentherm in the second quarter worth $39,000. Globeflex Capital L P purchased a new position in shares of Gentherm in the second quarter worth $133,000. Finally, Leonteq Securities AG raised its holdings in shares of Gentherm by 13.3% in the first quarter. Leonteq Securities AG now owns 5,289 shares of the auto parts company’s stock worth $147,000 after buying an additional 621 shares during the last quarter. 97.13% of the stock is owned by hedge funds and other institutional investors.

Gentherm Company Profile

Gentherm Incorporated (NASDAQ: THRM) develops and manufactures thermal management and comfort technologies for the automotive and medical industries. The company’s automotive products include heated and cooled seating systems, climate-controlled seats, heated steering wheels, seat ventilation, and other technologies designed to improve passenger comfort and manage temperature.

Gentherm also provides battery thermal management systems and related technologies that support the performance, efficiency, and safety of electrified vehicles.