Gentherm (NASDAQ:THRM) Upgraded at Freedom Broker

Key Points

• Freedom Broker upgraded Gentherm to “buy” from “hold” and set a $40 price target, implying 27.7% upside. Overall analyst sentiment remains mixed, with a consensus “hold” rating and average target of $43.57.
• Gentherm shares rose 9.6% to $31.32 in Tuesday trading. The company’s latest quarterly revenue reached $405.1 million, slightly exceeding estimates and increasing 4.7% year over year, but EPS of $0.33 fell well short of the $0.64 consensus.
• The company authorized a $400 million share-repurchase program, while CEO William Presley bought 5,000 shares for approximately $130,000—signals that management may view the stock as undervalued.

Gentherm (NASDAQ:THRM - Get Free Report) was upgraded by stock analysts at Freedom Broker from a "hold" rating to a "buy" rating in a report released on Tuesday, Benzinga reports. The firm presently has a $40.00 price objective on the auto parts company's stock. Freedom Broker's target price suggests a potential upside of 27.70% from the company's previous close.

THRM has been the topic of a number of other reports. Roth Capital reaffirmed a "buy" rating and set a $50.00 price target on shares of Gentherm in a research report on Wednesday, July 29th. CJS Securities began coverage on shares of Gentherm in a research report on Monday, September 14th. They set an "outperform" rating and a $50.00 price objective for the company. JPMorgan Chase & Co. dropped their target price on shares of Gentherm from $48.00 to $47.00 and set an "overweight" rating for the company in a research report on Friday. Zacks Research downgraded shares of Gentherm from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 28th. Finally, Wall Street Zen lowered Gentherm from a "buy" rating to a "hold" rating in a research note on Saturday. Five equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Gentherm presently has a consensus rating of "Hold" and an average target price of $43.57.

Gentherm Stock Up 9.6%

Shares of NASDAQ:THRM traded up $2.73 during mid-day trading on Tuesday, reaching $31.32. 1,971,497 shares of the stock were exchanged, compared to its average volume of 571,013. The company has a market cap of $962.90 million, a P/E ratio of 104.33, a P/E/G ratio of 0.66 and a beta of 1.37. The stock's 50 day simple moving average is $35.33 and its 200-day simple moving average is $34.16. The company has a quick ratio of 1.47, a current ratio of 2.05 and a debt-to-equity ratio of 0.44. Gentherm has a one year low of $25.31 and a one year high of $48.35.

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 (EPS) for the quarter, missing analysts' consensus estimates of $0.64 by ($0.31). The company had revenue of $405.10 million during the quarter, compared to analyst estimates of $404.16 million. Gentherm had a net margin of 0.57% and a return on equity of 10.30%. Gentherm's revenue was up 4.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.73 EPS. As a group, equities research analysts predict that Gentherm will post 2.89 EPS for the current year.

Gentherm declared that its Board of Directors has initiated a share repurchase program on Thursday, July 23rd that permits the company to repurchase $400 million in outstanding shares. This repurchase authorization permits the auto parts company to buy up to 36.2% of its stock through open market purchases. Share repurchase programs are typically a sign that the company's board believes its stock is undervalued.

Insider Activity

In related news, CEO William T. Presley bought 5,000 shares of the business's stock in a transaction on Friday, October 23rd. The shares were purchased at an average cost of $26.00 per share, with a total value of $130,000.00. Following the acquisition, the chief executive officer owned 183,314 shares of the company's stock, valued at $4,766,164. This represents a 2.80% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Wayne S. Kauffman III sold 4,700 shares of the firm'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 SEC filing for this sale provides additional information. Insiders own 2.10% of the company's stock.

Institutional Trading of Gentherm

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Bank of America Corp DE bought a new position in shares of Gentherm during the second quarter valued at about $9,986,000. BlackRock Inc. purchased a new stake in Gentherm in the 2nd quarter valued at about $165,005,000. Deutsche Bank AG purchased a new stake in Gentherm in the 2nd quarter valued at about $1,296,000. Walleye Capital LLC bought a new position in shares of Gentherm during the 2nd quarter worth approximately $802,000. Finally, Renaissance Technologies LLC boosted its stake in shares of Gentherm by 24.5% in the 1st quarter. Renaissance Technologies LLC now owns 271,464 shares of the auto parts company's stock worth $7,541,000 after buying an additional 53,400 shares during 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: CEO William Presley purchased 5,000 shares for approximately $130,000 at an average price of $26.00, increasing his direct ownership by 2.8%. Insider Buying: Gentherm CEO Buys Shares
• Positive Sentiment: Director Paul Anthony Mascarenas acquired 20,000 shares worth approximately $532,600, a substantial increase in his personal position. Multiple insider purchases can signal that company leaders view the recent share-price weakness as an attractive entry point. Gentherm Insider Purchase
• Positive Sentiment: Gentherm has a $400 million share-repurchase authorization, potentially allowing the company to buy back up to 36.2% of outstanding shares. The authorization, together with the insider buying, reinforces the bullish case that management considers the stock undervalued.
• Positive Sentiment: Analysts continue to see long-term upside: Stifel maintained a buy rating with a $46 target, JPMorgan maintained an overweight rating with a $47 target, and CJS Securities initiated coverage with an outperform rating and a $50 target. Recent institutional activity also included new positions from BlackRock and Bank of America.
• Neutral Sentiment: The company paid a $1.90-per-share special dividend on October 7. While supportive for shareholder returns, the dividend was already paid and is unlikely to provide a new near-term catalyst.
• Negative Sentiment: Gentherm’s latest quarterly earnings missed expectations sharply, with adjusted EPS of $0.33 versus a $0.64 consensus estimate. Revenue increased 4.7% year over year to $405.1 million and slightly exceeded estimates, but EPS declined from $0.73 a year earlier, while net margin was only 0.57%.
• Negative Sentiment: Analyst sentiment remains mixed, with four buy ratings and five holds producing a consensus “Hold” rating. Freedom Capital previously downgraded the stock to hold, and the company trades well below its 50-day and 200-day moving averages, reflecting ongoing concerns about profitability and execution.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.