BlackRock Inc. Purchases New Holdings in Gentherm Inc $THRM

Key Points

• BlackRock acquired 4.84 million Gentherm shares valued at approximately $165 million, giving it a 15.75% stake. Institutional investors and hedge funds collectively own 97.13% of the company.
• Gentherm reported quarterly EPS of $0.75, exceeding the $0.56 analyst estimate, while revenue rose 11% year over year to $404.94 million. The company also authorized a $400 million stock repurchase program, covering up to 36.2% of outstanding shares.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $45.80, although recommendations range from Strong Buy to Hold. Gentherm shares recently traded at $39.54.

BlackRock Inc. acquired a new stake in shares of Gentherm Inc (NASDAQ:THRM - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 4,837,439 shares of the auto parts company's stock, valued at approximately $165,005,000. BlackRock Inc. owned about 15.75% of Gentherm as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in the stock. Caxton Associates LLP raised its stake in shares of Gentherm by 4.7% during the third quarter. Caxton Associates LLP now owns 8,294 shares of the auto parts company's stock worth $282,000 after purchasing an additional 372 shares during the last quarter. Gamco Investors INC. ET AL increased its stake in Gentherm by 6.2% in the 4th quarter. Gamco Investors INC. ET AL now owns 8,500 shares of the auto parts company's stock valued at $309,000 after buying an additional 500 shares during the period. Farther Finance Advisors LLC raised its position in Gentherm by 160.3% during the 4th quarter. Farther Finance Advisors LLC now owns 812 shares of the auto parts company's stock worth $30,000 after buying an additional 500 shares during the last quarter. Palouse Capital Management Inc. lifted its stake in shares of Gentherm by 14.2% in the 2nd quarter. Palouse Capital Management Inc. now owns 4,822 shares of the auto parts company's stock worth $164,000 after acquiring an additional 600 shares during the period. Finally, Federation des caisses Desjardins du Quebec lifted its stake in shares of Gentherm by 1.5% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 40,940 shares of the auto parts company's stock worth $1,489,000 after acquiring an additional 600 shares during the period. 97.13% of the stock is owned by institutional investors and hedge funds.

Gentherm Price Performance

Gentherm stock opened at $39.54 on Friday. The firm has a market capitalization of $1.22 billion, a PE ratio of 45.45 and a beta of 1.35. Gentherm Inc has a 52 week low of $27.00 and a 52 week high of $48.35. The firm's 50-day simple moving average is $38.76 and its 200 day simple moving average is $33.89. The company has a quick ratio of 1.49, a current ratio of 2.06 and a debt-to-equity ratio of 0.38.

Gentherm (NASDAQ:THRM - Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The auto parts company reported $0.75 earnings per share for the quarter, topping analysts' consensus estimates of $0.56 by $0.19. The business had revenue of $404.94 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 company's revenue was up 11.0% on a year-over-year basis. During the same period last year, the company posted $0.54 EPS. On average, equities research analysts predict that Gentherm Inc will post 2.92 EPS for the current fiscal year.

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

Insider Activity

In other Gentherm news, SVP Wayne S. Kauffman III sold 4,700 shares of the stock in a transaction 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 $1,184,861.41. This represents a 14.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Insiders own 2.10% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Roth Capital reissued a "buy" rating and set a $50.00 price target on shares of Gentherm in a report on Wednesday, July 29th. Stifel Nicolaus lifted their price objective on Gentherm from $44.00 to $59.00 and gave the company a "buy" 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 note on Wednesday, July 29th. Freedom Capital cut Gentherm from a "strong-buy" rating to a "hold" rating in a report on Friday, July 24th. Finally, Wall Street Zen downgraded Gentherm from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 1st. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $45.80.

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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