Gentherm Inc (NASDAQ:THRM) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts give Gentherm a “Moderate Buy” consensus across eight firms, with five hold, two buy, and one strong-buy ratings. The average 12-month price target is $45.80, versus the stock’s reported $40.40 opening price.
• Gentherm exceeded quarterly expectations, reporting $0.75 in EPS versus a $0.56 consensus estimate and $404.94 million in revenue, up 11% year over year. The board also authorized a $400 million share-repurchase plan, covering up to 36.2% of outstanding shares.
• Institutional investors own 97.13% of Gentherm’s stock, while an insider recently sold 4,700 shares worth approximately $203,000. The shares have traded between $27.00 and $48.35 over the past 52 weeks.

Shares of Gentherm Inc (NASDAQ:THRM - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the eight research firms that are presently covering the company, MarketBeat reports. Five analysts have rated the stock with a hold recommendation, two have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $45.80.

A number of analysts have weighed in on THRM shares. Zacks Research upgraded Gentherm from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 27th. Robert W. Baird upped their price objective on Gentherm from $33.00 to $34.00 and gave the stock a "neutral" rating in a research report on Friday, April 24th. JPMorgan Chase & Co. increased their price objective on Gentherm from $41.00 to $48.00 and gave the company a "neutral" rating in a report on Friday, July 24th. Freedom Capital lowered Gentherm from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 24th. Finally, Roth Capital restated a "buy" rating and set a $50.00 target price on shares of Gentherm in a research note on Wednesday, July 29th.

Insiders Place Their Bets

In related news, SVP Wayne S. Kauffman III sold 4,700 shares of the company's stock in a transaction on 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 $1,184,861.41. This represents a 14.63% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Gentherm

Hedge funds and other institutional investors have recently bought and sold shares of the company. Farther Finance Advisors LLC grew its stake in shares of 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 purchasing an additional 500 shares during the period. Los Angeles Capital Management LLC acquired a new stake in shares of Gentherm in the fourth quarter valued at about $35,000. Eagle Bay Advisors LLC acquired a new stake in shares of Gentherm in the fourth quarter valued at about $50,000. Palladiem LLC acquired a new stake in shares of Gentherm in the fourth quarter valued at about $52,000. Finally, Tower Research Capital LLC TRC boosted its holdings in Gentherm by 232.0% during the second quarter. Tower Research Capital LLC TRC now owns 3,154 shares of the auto parts company's stock worth $89,000 after buying an additional 2,204 shares in the last quarter. 97.13% of the stock is currently owned by hedge funds and other institutional investors.

Gentherm Price Performance

Gentherm stock opened at $40.40 on Friday. 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 has a 52-week low of $27.00 and a 52-week high of $48.35. The firm has a market cap of $1.24 billion, a PE ratio of 46.44 and a beta of 1.35. The company's 50 day moving average is $37.13 and its two-hundred day moving average is $33.15.

Gentherm (NASDAQ:THRM - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The auto parts company reported $0.75 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $382.90 million. During the same quarter in the previous year, the firm 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 expect that Gentherm will post 2.92 EPS for the current fiscal year.

Gentherm announced that its board has authorized a stock buyback plan on Thursday, July 23rd that permits the company to repurchase $400.00 million in shares. This repurchase authorization permits the auto parts company to repurchase up to 36.2% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board believes its shares are undervalued.

About Gentherm

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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