Gentherm Inc (NASDAQ:THRM) Stock Has Average Price Target of $46.50 According to Analysts

Key Points

• Analysts maintain a moderately positive outlook: Nine brokerages give Gentherm a consensus “Moderate Buy” rating, with an average 12-month price target of $46.50 versus the reported share price of $35.21.
• Gentherm exceeded quarterly expectations, reporting $0.75 in EPS on $416.17 million in revenue, while revenue increased 11% year over year.
• The company approved a $400 million share-repurchase program and declared a special $1.90-per-share dividend; institutional investors own 97.13% of the stock.

Gentherm Inc (NASDAQ:THRM - Get Free Report) has been given an average recommendation of "Moderate Buy" by the nine brokerages that are currently covering the company, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12-month price target among brokers that have covered the stock in the last year is $46.50.

Several equities analysts have issued reports on THRM shares. Zacks Research upgraded Gentherm from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 27th. Roth Capital restated a "buy" rating and issued a $50.00 price target on shares of Gentherm in a research note on Wednesday, July 29th. Stifel Nicolaus lifted their price target on Gentherm from $44.00 to $59.00 and gave the company a "buy" rating in a research note on Friday, July 24th. CJS Securities started coverage on Gentherm in a report on Monday, September 14th. They set an "outperform" rating and a $50.00 price objective on the stock. Finally, JPMorgan Chase & Co. upgraded shares of Gentherm from a "neutral" rating to an "overweight" rating and set a $48.00 target price on the stock in a research report on Tuesday, September 15th.

Insiders Place Their Bets

In other Gentherm news, SVP Wayne Kauffman, III sold 4,700 shares of the 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 transaction, the senior vice president directly owned 27,421 shares of the company's stock, valued at approximately $1,184,861.41. This trade represents a 14.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Gentherm

Institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new position in Gentherm during the second quarter worth $165,005,000. Dimensional Fund Advisors LP grew its holdings in Gentherm by 7.0% in the first quarter. Dimensional Fund Advisors LP now owns 1,474,493 shares of the auto parts company's stock valued at $40,960,000 after purchasing an additional 96,280 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in Gentherm in the second quarter valued at $27,822,000. Arrowstreet Capital Limited Partnership increased its position in shares of Gentherm by 1.8% in the first quarter. Arrowstreet Capital Limited Partnership now owns 554,641 shares of the auto parts company's stock valued at $15,408,000 after buying an additional 10,058 shares in the last quarter. Finally, Bank of America Corp DE increased its position in shares of Gentherm by 7.6% in the first quarter. Bank of America Corp DE now owns 307,770 shares of the auto parts company's stock valued at $8,550,000 after buying an additional 21,677 shares in the last quarter. Institutional investors and hedge funds own 97.13% of the company's stock.

Gentherm Stock Up 3.9%

THRM stock opened at $35.21 on Friday. Gentherm has a one year low of $27.00 and a one year high of $48.35. 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 company has a fifty day moving average of $39.86 and a 200-day moving average of $34.72. The stock has a market capitalization of $1.08 billion, a PE ratio of 40.47, a price-to-earnings-growth ratio of 0.77 and a beta of 1.34.

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

Gentherm announced that its board has approved a share repurchase program on Thursday, July 23rd that authorizes the company to buyback $400.00 million in outstanding shares. This buyback authorization authorizes the auto parts company to reacquire up to 36.2% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's management believes its shares are undervalued.

Gentherm Dividend Announcement

The business also recently disclosed a special dividend, which will be paid on Wednesday, October 7th. Investors of record on Monday, September 28th will be issued a dividend of $1.90 per share.

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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