Gentherm (NASDAQ:THRM) Shares Down 3.4% - Should You Sell?

Key Points

• Gentherm shares fell 3.4% to $41.25 in light trading, while still remaining above the stock’s 50-day and 200-day moving averages.
• Analyst sentiment remains mixed: Stifel raised its target to $59 and maintained a buy rating, while other firms kept neutral or hold ratings. The consensus rating is Hold with a $43.60 price target.
• Recent results exceeded expectations, with quarterly EPS of $0.75 versus a $0.56 estimate and revenue up 11% year over year. Gentherm also authorized a $400 million share buyback, covering up to 36.2% of outstanding shares.

Gentherm Inc (NASDAQ:THRM - Get Free Report)'s share price traded down 3.4% during trading on Monday . The stock traded as low as $40.96 and last traded at $41.25. Approximately 35,690 shares were traded during trading, a decline of 88% from the average session volume of 304,269 shares. The stock had previously closed at $42.69.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on THRM. Robert W. Baird lifted their price objective on shares of Gentherm from $33.00 to $34.00 and gave the company a "neutral" rating in a research report on Friday, April 24th. JPMorgan Chase & Co. upped their price objective on shares of Gentherm from $41.00 to $48.00 and gave the stock a "neutral" rating in a research report on Friday. Stifel Nicolaus raised their target price on shares of Gentherm from $44.00 to $59.00 and gave the stock a "buy" rating in a research note on Friday. Weiss Ratings raised shares of Gentherm from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, May 8th. Finally, Wall Street Zen upgraded shares of Gentherm from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 25th. Two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $43.60.

Gentherm Price Performance

The stock's fifty day moving average price is $35.44 and its 200-day moving average price is $32.92. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.49 and a current ratio of 2.06. The firm has a market cap of $1.28 billion, a PE ratio of 48.07 and a beta of 1.38.

Gentherm (NASDAQ:THRM - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The auto parts company reported $0.75 EPS for the quarter, topping analysts' consensus estimates of $0.56 by $0.19. The firm had revenue of $404.94 million for the quarter, compared to the consensus estimate of $382.90 million. Gentherm had a net margin of 1.68% and a return on equity of 12.06%. The firm's revenue was up 11.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.54 earnings per share. As a group, equities analysts forecast that Gentherm Inc will post 2.75 EPS for the current fiscal year.

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

Institutional Investors Weigh In On Gentherm

A number of institutional investors and hedge funds have recently modified their holdings of THRM. Farther Finance Advisors LLC raised its holdings in Gentherm by 160.3% during the fourth 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 last quarter. Los Angeles Capital Management LLC purchased a new position in shares of Gentherm in the fourth quarter valued at $35,000. Eagle Bay Advisors LLC purchased a new position in shares of Gentherm in the fourth quarter valued at $50,000. Palladiem LLC purchased a new position in shares of Gentherm in the fourth quarter valued at $52,000. Finally, Nisa Investment Advisors LLC raised its stake in shares of Gentherm by 21.5% during the 4th quarter. Nisa Investment Advisors LLC now owns 1,994 shares of the auto parts company's stock worth $73,000 after buying an additional 353 shares during the last quarter. Institutional investors and hedge funds own 97.13% of the company's stock.

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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