Gentherm (NASDAQ:THRM) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Gentherm's stock was downgraded by Wall Street Zen from a buy rating to a hold rating, raising concerns among investors.
• Despite the downgrade, Robert W. Baird increased the price target for Gentherm shares from $28.00 to $35.00, indicating a potential outperform outlook.
• The company reported earnings of $0.54 per share for the last quarter, which was below analysts' expectations, while revenue was down 0.2% year-over-year at $375.09 million.

Wall Street Zen lowered shares of Gentherm (NASDAQ:THRM - Free Report) from a buy rating to a hold rating in a research note issued to investors on Friday morning.

Several other equities research analysts have also recently commented on the company. Zacks Research cut Gentherm from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 20th. Robert W. Baird raised their price target on Gentherm from $28.00 to $35.00 and gave the stock an "outperform" rating in a research report on Friday, July 11th. Baird R W upgraded Gentherm from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 11th. Finally, JPMorgan Chase & Co. raised their price target on Gentherm from $37.00 to $38.00 and gave the stock a "neutral" rating in a research report on Monday, July 28th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $46.00.

Gentherm Trading Down 0.9%

Shares of NASDAQ THRM traded down $0.32 during midday trading on Friday, hitting $36.85. The stock had a trading volume of 230,934 shares, compared to its average volume of 240,489. The company's 50-day simple moving average is $32.24 and its 200 day simple moving average is $29.76. The firm has a market cap of $1.12 billion, a P/E ratio of 36.13 and a beta of 1.45. Gentherm has a fifty-two week low of $22.75 and a fifty-two week high of $51.51. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.01 and a quick ratio of 1.35.

Gentherm (NASDAQ:THRM - Get Free Report) last released its earnings results on Thursday, July 24th. The auto parts company reported $0.54 EPS for the quarter, missing the consensus estimate of $0.59 by ($0.05). The firm had revenue of $375.09 million during the quarter, compared to analyst estimates of $358.09 million. Gentherm had a net margin of 2.18% and a return on equity of 9.90%. The firm's quarterly revenue was down .2% on a year-over-year basis. During the same period last year, the business posted $0.66 earnings per share. Gentherm has set its FY 2025 guidance at EPS. Research analysts anticipate that Gentherm will post 3.1 EPS for the current year.

Insider Activity

In other news, SVP Barbara J. Runyon sold 3,348 shares of the firm's stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $34.82, for a total value of $116,577.36. Following the transaction, the senior vice president directly owned 31,316 shares in the company, valued at $1,090,423.12. This trade represents a 9.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in THRM. Barclays PLC lifted its holdings in Gentherm by 1.4% during the fourth quarter. Barclays PLC now owns 62,346 shares of the auto parts company's stock worth $2,489,000 after acquiring an additional 880 shares in the last quarter. Walleye Capital LLC bought a new position in Gentherm during the fourth quarter worth about $258,000. First Trust Advisors LP lifted its holdings in Gentherm by 89.5% during the fourth quarter. First Trust Advisors LP now owns 49,541 shares of the auto parts company's stock worth $1,978,000 after acquiring an additional 23,397 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in Gentherm by 5.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,217,681 shares of the auto parts company's stock worth $48,616,000 after acquiring an additional 62,562 shares in the last quarter. Finally, MetLife Investment Management LLC lifted its holdings in Gentherm by 6.8% during the fourth quarter. MetLife Investment Management LLC now owns 19,254 shares of the auto parts company's stock worth $769,000 after acquiring an additional 1,226 shares in the last quarter. 97.13% of the stock is currently owned by institutional investors.

About Gentherm

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins.