Gentherm Inc (NASDAQ:THRM) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Gentherm has a “Moderate Buy” consensus rating from eight analysts, with five holds, two buys and one strong buy. The average 12-month price target is $45.80, versus a recent share price of $39.29.
• The company exceeded quarterly expectations, reporting $0.75 in EPS and $404.94 million in revenue, up 11% year over year and ahead of analyst estimates.
• Gentherm authorized a $400 million stock buyback, allowing repurchases of up to 36.2% of outstanding shares; insiders own 2.1% of the stock, while institutional investors own 97.13%.

Gentherm Inc (NASDAQ:THRM - Get Free Report) has earned a consensus rating of "Moderate Buy" from the eight research firms that are presently covering the firm, MarketBeat Ratings reports. Five research analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $45.80.

THRM has been the topic of several research analyst reports. Zacks Research raised Gentherm from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 27th. Freedom Capital cut Gentherm from a "strong-buy" rating to a "hold" rating in a report on Friday, July 24th. Weiss Ratings raised Gentherm from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, July 29th. Roth Capital restated a "buy" rating and set a $50.00 price target on shares of Gentherm in a research note on Wednesday, July 29th. Finally, Wall Street Zen downgraded Gentherm from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 1st.

Gentherm Price Performance

Gentherm stock opened at $39.29 on Tuesday. 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 cap of $1.21 billion, a price-to-earnings ratio of 45.16 and a beta of 1.35. The firm has a 50-day moving average of $38.84 and a two-hundred day moving average of $33.96. Gentherm has a 1 year low of $27.00 and a 1 year high of $48.35.

Gentherm (NASDAQ:THRM - Get Free Report) last issued its 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. Gentherm had a net margin of 1.68% and a return on equity of 12.06%. The business had revenue of $404.94 million for the quarter, compared to analyst estimates of $382.90 million. During the same period last year, the company posted $0.54 earnings per share. The company's quarterly revenue was up 11.0% compared to the same quarter last year. On average, research analysts forecast that Gentherm will post 2.92 earnings per share for the current year.

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

Insider Buying and Selling

In other news, SVP Wayne S. Kauffman III sold 4,700 shares of the business'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 owned 27,421 shares in the company, 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 this hyperlink. Company insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Gentherm

Several hedge funds have recently modified their holdings of the business. Farther Finance Advisors LLC boosted its position in Gentherm by 160.3% during the fourth quarter. Farther Finance Advisors LLC now owns 812 shares of the auto parts company's stock valued at $30,000 after purchasing an additional 500 shares in the last quarter. Meeder Asset Management Inc. acquired a new stake in Gentherm in the second quarter worth about $30,000. Los Angeles Capital Management LLC purchased a new position in shares of Gentherm in the fourth quarter worth $35,000. Allworth Financial LP purchased a new position in shares of Gentherm in the second quarter worth $37,000. Finally, Public Employees Retirement System of Ohio acquired a new position in shares of Gentherm in the second quarter valued at about $39,000. Hedge funds and other institutional investors own 97.13% of the company's stock.

Gentherm Company Profile

Gentherm Incorporated NASDAQ: THRM is a global developer and supplier of advanced thermal management technologies for automotive, specialty vehicle, medical, consumer and industrial markets. The company's core focus lies in delivering integrated heating and cooling systems designed to enhance energy efficiency, comfort and safety across a wide range of applications. Gentherm's product portfolio includes seat thermal systems, heated and ventilated seating surfaces, steering wheel heaters, battery thermal management solutions, and climate systems for electric vehicles.

In the automotive sector, Gentherm partners with leading original equipment manufacturers to engineer and manufacture high-performance thermal solutions that meet stringent industry demands for reduced weight, lower energy consumption and improved passenger comfort.

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