Zacks Research Downgrades Gentherm (NASDAQ:THRM) to Hold

Key Points

• Zacks Research downgraded Gentherm from “strong buy” to “hold,” contributing to a consensus “hold” rating from analysts with an average price target of $46.50.
• Gentherm reported stronger-than-expected quarterly results, with earnings of $0.75 per share versus the $0.56 consensus estimate and revenue of $416.17 million, 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 downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Monday, Zacks reports.

Several other brokerages have also issued reports on THRM. Stifel Nicolaus raised their target price on Gentherm from $44.00 to $59.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Wall Street Zen lowered Gentherm from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 1st. Freedom Capital lowered Gentherm from a "strong-buy" rating to a "hold" rating in a report on Friday, July 24th. Roth Capital reiterated a "buy" rating and issued a $50.00 price objective on shares of Gentherm in a research report on Wednesday, July 29th. Finally, CJS Securities began coverage on Gentherm in a research report on Monday, September 14th. They set an "outperform" rating and a $50.00 price target for the company. Four equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $46.50.

Gentherm Price Performance

THRM opened at $33.92 on Monday. The company's 50 day simple moving average is $39.77 and its 200-day simple moving average is $34.83. The company has a debt-to-equity ratio of 0.38, a current ratio of 2.06 and a quick ratio of 1.49. The stock has a market capitalization of $1.04 billion, a P/E ratio of 38.99, a price-to-earnings-growth ratio of 0.77 and a beta of 1.34. Gentherm has a one year low of $27.00 and a one year high of $48.35.

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

Gentherm declared that its Board of Directors has initiated a stock repurchase program on Thursday, July 23rd that permits the company to repurchase $400.00 million in outstanding shares. This repurchase authorization permits the auto parts company to reacquire up to 36.2% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling at Gentherm

In other news, SVP Wayne Kauffman, III sold 4,700 shares of Gentherm stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $43.21, for a total transaction of $203,087.00. Following the sale, 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 sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Gentherm

Several institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in Gentherm during the 2nd quarter valued at about $165,005,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in shares of Gentherm during the second quarter valued at approximately $27,822,000. Bank of America Corp DE purchased a new position in Gentherm in the 2nd quarter worth approximately $9,986,000. Bank of New York Mellon Corp purchased a new stake in Gentherm during the 2nd quarter valued at $7,180,000. Finally, Bastion Asset Management Inc. bought a new stake in shares of Gentherm in the 1st quarter worth $6,213,000. 97.13% of the stock is currently owned by institutional investors.

About Gentherm

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.

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.