Gentherm (NASDAQ:THRM) Raised to Overweight at JPMorgan Chase & Co.

Key Points

• JPMorgan upgraded Gentherm to “overweight” from “neutral” and set a $48 price target, implying approximately 25.6% upside from the reported share price.
• Gentherm exceeded quarterly expectations, reporting $0.75 in earnings per share versus a $0.56 consensus estimate and $416.17 million in revenue, up 11% year over year.
• The company authorized a $400 million share-repurchase program, allowing it to buy back up to 36.2% of outstanding shares; institutional investors own 97.13% of the stock.

Gentherm (NASDAQ:THRM - Get Free Report) was upgraded by research analysts at JPMorgan Chase & Co. from a "neutral" rating to an "overweight" rating in a research report issued to clients and investors on Tuesday, Briefing.com reports. The firm currently has a $48.00 price objective on the auto parts company's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 25.56% from the stock's current price.

A number of other equities research analysts have also recently commented on THRM. Weiss Ratings upgraded shares of Gentherm from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, July 29th. Freedom Capital downgraded shares of Gentherm from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 24th. Wall Street Zen cut shares of Gentherm from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 1st. Zacks Research raised shares of Gentherm from a "hold" rating to a "strong-buy" rating in a report on Monday, July 27th. Finally, Roth Capital reissued a "buy" rating and set a $50.00 price target on shares of Gentherm in a report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $46.50.

Gentherm Trading Down 1.6%

Shares of NASDAQ:THRM opened at $38.23 on Tuesday. Gentherm has a 52-week low of $27.00 and a 52-week high of $48.35. The stock has a market capitalization of $1.18 billion, a price-to-earnings ratio of 43.94, a PEG ratio of 0.89 and a beta of 1.34. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.49 and a current ratio of 2.06. The stock's 50-day simple moving average is $39.76 and its two-hundred day simple moving average is $34.44.

Gentherm (NASDAQ:THRM - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The auto parts company reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.19. Gentherm had a net margin of 1.68% and a return on equity of 12.06%. The business had revenue of $416.17 million for the quarter, compared to the consensus estimate of $382.90 million. During the same period last year, the firm earned $0.54 earnings per share. The company's quarterly revenue was up 11.0% on a year-over-year basis. Analysts expect that Gentherm will post 2.92 EPS for the current year.

Gentherm announced that its board has initiated a stock repurchase plan on Thursday, July 23rd that authorizes the company to repurchase $400.00 million in shares. This repurchase authorization authorizes the auto parts company to purchase up to 36.2% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Gentherm

In other news, SVP Wayne Kauffman, III sold 4,700 shares of the business's stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $43.21, for a total transaction of $203,087.00. Following the transaction, the senior vice president owned 27,421 shares of the company's stock, valued at approximately $1,184,861.41. The trade was a 14.63% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of THRM. Tidal Investments LLC increased its position in Gentherm by 9.4% during the 2nd quarter. Tidal Investments LLC now owns 23,651 shares of the auto parts company's stock valued at $807,000 after purchasing an additional 2,030 shares during the period. Engineers Gate Manager LP lifted its holdings in shares of Gentherm by 95.0% during the second quarter. Engineers Gate Manager LP now owns 17,200 shares of the auto parts company's stock worth $587,000 after purchasing an additional 8,380 shares during the period. Corient Private Wealth LP boosted its position in Gentherm by 43.4% in the second quarter. Corient Private Wealth LP now owns 11,780 shares of the auto parts company's stock valued at $402,000 after buying an additional 3,565 shares during the last quarter. California State Teachers Retirement System increased its holdings in Gentherm by 3,972.4% in the 2nd quarter. California State Teachers Retirement System now owns 1,167,074 shares of the auto parts company's stock worth $39,809,000 after buying an additional 1,138,416 shares during the period. Finally, Odyssean LLC purchased a new position in Gentherm during the 2nd quarter worth approximately $422,000. 97.13% of the stock is owned by hedge funds and other institutional investors.

Gentherm Company Profile

Gentherm Inc NASDAQ: THRM develops and manufactures thermal management and pneumatic comfort technologies for the automotive and medical markets. The company's products are designed to improve occupant comfort, regulate temperature and support specialized healthcare applications.

For automotive customers, Gentherm supplies heated and ventilated seating systems, climate-controlled seats, heated steering wheels, neck-conditioning systems and other interior comfort technologies. Its portfolio also includes battery thermal management and related solutions intended to help manage temperature in electrified vehicles.

In the medical market, Gentherm provides patient temperature-management systems used for warming and cooling during medical procedures and critical-care applications.

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