Gentherm (NASDAQ:THRM) Hits New 12-Month High After Better-Than-Expected Earnings

Key Points

• Gentherm shares hit a new 52-week high after the company reported better-than-expected quarterly results, with the stock trading as high as $45.96 versus a prior close of $36.05.
• The company beat estimates on both earnings and revenue, posting $0.75 EPS on $404.94 million in revenue, while revenue rose 11% year over year.
• Gentherm’s board approved a $400 million share repurchase program, and management also raised full-year guidance, signaling confidence in future performance.

Gentherm Inc (NASDAQ:THRM - Get Free Report) shares hit a new 52-week high on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $45.96 and last traded at $45.61, with a volume of 1736213 shares trading hands. The stock had previously closed at $36.05.

The auto parts company reported $0.75 EPS for the quarter, beating the consensus estimate of $0.56 by $0.19. Gentherm had a net margin of 1.47% and a return on equity of 11.25%. The business had revenue of $404.94 million for the quarter, compared to analysts' expectations of $382.90 million. During the same period in the previous year, the company posted $0.54 EPS. Gentherm's revenue was up 11.0% on a year-over-year basis.

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

Trending Headlines about Gentherm

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Gentherm beat Q2 earnings and revenue expectations, reporting $0.75 per share versus the $0.56 consensus and revenue of $404.94 million versus $382.90 million expected. The company also said revenue rose 11% year over year. Gentherm (THRM) Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised full-year 2026 guidance and highlighted record quarterly revenue of $416 million, signaling momentum heading into the second half of the year. Gentherm Reports 2026 Second Quarter Results and Announces a New Increased Stock Repurchase Authorization
• Positive Sentiment: The board approved a new stock repurchase authorization of up to $400 million, which can support earnings per share and signals confidence in the company’s cash generation. Gentherm Reports 2026 Second Quarter Results and Announces a New Increased Stock Repurchase Authorization
• Positive Sentiment: Gentherm also announced the acquisition of Innovative Medical Equipment, expanding its medical product portfolio and customer channels, which could add to longer-term growth. Gentherm Acquires Innovative Medical Equipment, LLC, Strengthening Medical Product Portfolio and Customer Channels

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on THRM shares. 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 note on Thursday, May 14th. Robert W. Baird boosted their price target on Gentherm from $33.00 to $34.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. Stifel Nicolaus increased their price objective on Gentherm from $38.00 to $44.00 and gave the stock a "buy" rating in a report on Monday. Wall Street Zen raised shares of Gentherm from a "buy" rating to a "strong-buy" rating in a research report on Saturday, April 25th. Finally, Weiss Ratings upgraded shares of Gentherm from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, May 8th. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Gentherm has a consensus rating of "Hold" and a consensus price target of $38.60.

Institutional Trading of Gentherm

Large investors have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Gentherm by 5.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,613 shares of the auto parts company's stock worth $2,904,000 after purchasing an additional 5,824 shares during the last quarter. Millennium Management LLC grew its holdings in Gentherm by 93.4% during the first quarter. Millennium Management LLC now owns 155,617 shares of the auto parts company's stock valued at $4,161,000 after purchasing an additional 75,170 shares during the last quarter. Jane Street Group LLC raised its position in shares of Gentherm by 389.2% in the first quarter. Jane Street Group LLC now owns 84,403 shares of the auto parts company's stock valued at $2,257,000 after purchasing an additional 67,150 shares during the period. JPMorgan Chase & Co. raised its position in shares of Gentherm by 1.7% in the second quarter. JPMorgan Chase & Co. now owns 108,251 shares of the auto parts company's stock valued at $3,062,000 after purchasing an additional 1,850 shares during the period. Finally, Hsbc Holdings PLC acquired a new stake in shares of Gentherm in the second quarter worth $526,000. Institutional investors own 97.13% of the company's stock.

Gentherm Price Performance

The stock's 50 day moving average price is $35.19 and its two-hundred day moving average price is $32.88. The company has a debt-to-equity ratio of 0.31, a current ratio of 1.97 and a quick ratio of 1.36. The firm has a market capitalization of $1.40 billion, a price-to-earnings ratio of 60.81 and a beta of 1.38.

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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