Gentherm (NASDAQ:THRM) Rating Lowered to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded Gentherm from “strong buy” to “buy,” while the broader analyst consensus remains “Moderate Buy” with a $45.80 target price.
• Gentherm reported quarterly EPS of $0.75, surpassing the $0.56 estimate, while revenue reached $404.94 million and rose 11% year over year.
• The company authorized a $400 million share-repurchase program, allowing it to buy back up to 36.2% of outstanding shares; institutional investors own 97.13% of the stock.

Gentherm (NASDAQ:THRM - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report issued on Saturday.

Other equities analysts also recently issued reports about the stock. Robert W. Baird upped their price objective on shares of Gentherm from $33.00 to $34.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. Roth Capital restated a "buy" rating and set a $50.00 target price on shares of Gentherm in a report on Wednesday. Zacks Research upgraded Gentherm from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 27th. Stifel Nicolaus increased their price objective on shares of Gentherm from $44.00 to $59.00 and gave the company a "buy" rating in a research report on Friday, July 24th. Finally, Weiss Ratings raised Gentherm from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Gentherm currently has a consensus rating of "Moderate Buy" and a consensus target price of $45.80.

Gentherm Stock Performance

Shares of THRM opened at $40.53 on Friday. The company has a current ratio of 2.06, a quick ratio of 1.49 and a debt-to-equity ratio of 0.38. The stock has a 50-day moving average price of $36.52 and a 200-day moving average price of $33.08. The company has a market cap of $1.24 billion, a PE ratio of 46.59 and a beta of 1.38. Gentherm has a 12-month low of $27.00 and a 12-month high of $48.35.

Gentherm (NASDAQ:THRM - Get Free Report) last released its earnings results on Thursday, July 23rd. The auto parts company reported $0.75 EPS for the quarter, beating analysts' consensus estimates of $0.56 by $0.19. The business had revenue of $404.94 million for the quarter, compared to analysts' expectations of $382.90 million. Gentherm had a return on equity of 12.06% and a net margin of 1.68%.The firm's revenue was up 11.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.54 earnings per share. As a group, equities analysts forecast that Gentherm will post 2.92 earnings per share for the current fiscal year.

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

Insider Transactions at Gentherm

In related news, SVP Wayne S. Kauffman III sold 4,700 shares of Gentherm stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $43.21, for a total transaction 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. The trade was a 14.63% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 2.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Gentherm by 5.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,613 shares of the auto parts company's stock valued at $2,904,000 after purchasing an additional 5,824 shares during the last quarter. Millennium Management LLC lifted its position 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 acquiring an additional 75,170 shares during the last quarter. Jane Street Group LLC boosted its stake in 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 acquiring an additional 67,150 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in Gentherm by 1.7% in the second quarter. JPMorgan Chase & Co. now owns 108,251 shares of the auto parts company's stock worth $3,062,000 after purchasing an additional 1,850 shares during the last quarter. Finally, Hsbc Holdings PLC purchased a new position in Gentherm in the second quarter worth $526,000. 97.13% of the stock is currently owned by hedge funds and other institutional investors.

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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