Gentherm (NASDAQ:THRM) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Gentherm from “buy” to “hold,” contributing to an overall analyst consensus of “Hold” from four Buy and five Hold ratings. The consensus price target is $44.17, well above the referenced share price of $28.60.
• Gentherm’s latest quarter showed revenue of $405.1 million, slightly exceeding estimates, but EPS of $0.33 fell far short of the $0.64 consensus and declined from $0.73 a year earlier. Profitability and operating cash flow were pressured by lower margins, inflation and Modine integration costs.
• The company authorized a $400 million stock-repurchase plan, allowing buybacks of up to 36.2% of shares, while institutional investors own 97.13% of the stock. Analysts’ ratings remain mixed, with some firms maintaining Buy or Outperform recommendations despite recent target-price reductions.

Gentherm (NASDAQ:THRM - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also weighed in on THRM. Weiss Ratings upgraded shares of Gentherm from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 29th. Roth Capital reissued a "buy" rating and issued a $50.00 price objective on shares of Gentherm in a research report on Wednesday, July 29th. Zacks Research downgraded shares of Gentherm from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. Freedom Capital downgraded shares of Gentherm from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 24th. Finally, CJS Securities started coverage on shares of Gentherm in a research report on Monday, September 14th. They set an "outperform" rating and a $50.00 target price on the stock. Four equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, Gentherm presently has an average rating of "Hold" and a consensus target price of $44.17.

Gentherm Stock Performance

Shares of Gentherm stock opened at $28.60 on Friday. The company has a quick ratio of 1.49, a current ratio of 2.05 and a debt-to-equity ratio of 0.44. The stock's fifty day moving average is $35.57 and its two-hundred day moving average is $35.05. Gentherm has a 52 week low of $25.31 and a 52 week high of $48.35. The company has a market capitalization of $879.16 million, a PE ratio of 10.85, a price-to-earnings-growth ratio of 0.60 and a beta of 1.37.

Gentherm (NASDAQ:THRM - Get Free Report) last released its earnings results on Thursday, October 22nd. The auto parts company reported $0.33 earnings per share 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 the consensus estimate of $404.16 million. Gentherm had a return on equity of 10.30% and a net margin of 0.57%. The firm's revenue for the quarter was up 4.7% compared to the same quarter last year. During the same quarter last year, the business posted $0.73 earnings per share. As a group, analysts expect that Gentherm will post 2.89 earnings per share for the current year.

Gentherm announced that its board has authorized a stock repurchase plan on Thursday, July 23rd that permits the company to repurchase $400.00 million in shares. This repurchase authorization permits the auto parts company to repurchase up to 36.2% of its shares through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In related news, SVP Wayne Kauffman, III sold 4,700 shares of the company's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $43.21, for a total value of $203,087.00. Following the completion of the sale, the senior vice president directly owned 27,421 shares of the company's stock, valued at $1,184,861.41. This represents a 14.63% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 2.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Gentherm

Several large investors have recently modified their holdings of THRM. Viking Fund Management LLC purchased a new stake in shares of Gentherm in the 3rd quarter worth approximately $266,000. Moody National Bank Trust Division increased its holdings in Gentherm by 8.3% during the third quarter. Moody National Bank Trust Division now owns 38,780 shares of the auto parts company's stock valued at $1,291,000 after buying an additional 2,972 shares during the period. Tidal Investments LLC increased its holdings in Gentherm by 9.4% during the second quarter. Tidal Investments LLC now owns 23,651 shares of the auto parts company's stock valued at $807,000 after buying an additional 2,030 shares during the period. Engineers Gate Manager LP increased its holdings in Gentherm by 95.0% during the second quarter. Engineers Gate Manager LP now owns 17,200 shares of the auto parts company's stock valued at $587,000 after buying an additional 8,380 shares during the period. Finally, Corient Private Wealth LP raised its stake 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 worth $402,000 after buying an additional 3,565 shares in the last quarter. Institutional investors own 97.13% of the company's stock.

Key Stories Impacting Gentherm

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Modine integration boosts 2026 outlook: Gentherm raised full-year product-revenue guidance to $1.825 billion–$1.925 billion, up from $1.55 billion–$1.65 billion previously. Adjusted EBITDA guidance increased to $210 million–$230 million, while adjusted free cash flow is expected at $100 million–$120 million. The guidance reflects the addition of Modine Performance Technologies beginning in the fourth quarter. Gentherm Updates Outlook After Modine Performance Integration
• Positive Sentiment: Strong business momentum and capital returns: Third-quarter automotive climate and comfort revenue rose 8.8% year over year, medical revenue increased 14.6%, and Gentherm secured $555 million in new automotive awards. The company also repurchased $60 million of stock in October, with approximately $340 million remaining under its authorization, and paid a $2.07-per-share special dividend. Gentherm Reports 2026 Third Quarter Results
• Positive Sentiment: Analysts remain bullish despite target reductions: JPMorgan lowered its target from $48 to $47 while retaining an “overweight” rating, and Stifel reduced its target from $48 to $46 while maintaining a “buy” rating. Both targets imply substantial upside from the referenced share price. JPMorgan Analyst Rating
• Neutral Sentiment: Quarterly revenue exceeded expectations: Third-quarter revenue increased 4.7% to $405.1 million, slightly above the $404.2 million consensus estimate. The company described results as in line with expectations following the Modine transaction. Gentherm Q3 2026 Earnings Call Transcript
• Negative Sentiment: Profitability materially missed estimates: Adjusted EPS was $0.33, below the $0.64–$0.66 consensus, and declined from $0.73 a year earlier. Gentherm reported a GAAP loss of $2.6 million versus prior-year net income of $14.9 million. Gross margin fell to 23.3% from 24.6%, while operating cash flow dropped to $36 million from $87.8 million, reflecting material-cost, inflation and integration pressures. Gentherm Q3 Earnings Miss

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.

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