Gentherm (NASDAQ:THRM) Shares Gap Up Following Earnings Beat

Key Points

• Earnings beat: Gentherm reported Q earnings of $0.84 per share (vs. $0.51 consensus) and revenue of $393.7M (vs. $363.8M), driving the stock to gap up from $28.75 to a $31.00 open and last trading around $31.86.
• Analyst sentiment is mixed — the MarketBeat consensus is a "Hold" with a $38.60 price target, while individual firms have issued upgrades, downgrades and lowered price targets in recent weeks.
• Institutional investors own 97.13% of the company, with several large funds increasing positions, and the stock trades with a market cap of about $978M and a P/E of 52.32.

Shares of Gentherm Inc (NASDAQ:THRM - Get Free Report) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $28.75, but opened at $31.00. Gentherm shares last traded at $31.8640, with a volume of 100,037 shares.

The auto parts company reported $0.84 earnings per share for the quarter, topping analysts' consensus estimates of $0.51 by $0.33. Gentherm had a net margin of 1.22% and a return on equity of 10.07%. The business had revenue of $393.71 million during the quarter, compared to the consensus estimate of $363.82 million. During the same quarter last year, the company earned $0.51 earnings per share. The business's quarterly revenue was up 11.2% compared to the same quarter last year.

Wall Street Analyst Weigh In

A number of analysts have weighed in on THRM shares. Weiss Ratings cut shares of Gentherm from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, February 9th. Roth Mkm decreased their price target on shares of Gentherm from $44.00 to $39.00 and set a "buy" rating for the company in a report on Monday, March 23rd. Wall Street Zen downgraded shares of Gentherm from a "strong-buy" rating to a "buy" rating in a research report on Saturday, February 21st. Loop Capital set a $38.00 price objective on shares of Gentherm in a research note on Wednesday, February 25th. Finally, Argus raised shares of Gentherm to a "hold" rating in a report on Friday, February 27th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $38.60.

Hedge Funds Weigh In On Gentherm

Several large investors have recently made changes to their positions in THRM. Vanguard Group Inc. raised its position in shares of Gentherm by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 3,332,197 shares of the auto parts company's stock worth $121,192,000 after purchasing an additional 29,214 shares during the period. Dimensional Fund Advisors LP raised its holdings in Gentherm by 1.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,378,213 shares of the auto parts company's stock worth $50,128,000 after buying an additional 16,529 shares during the period. Harvey Partners LLC raised its holdings in Gentherm by 72.6% during the 3rd quarter. Harvey Partners LLC now owns 1,024,500 shares of the auto parts company's stock worth $34,894,000 after buying an additional 431,072 shares during the period. Segall Bryant & Hamill LLC lifted its stake in Gentherm by 46.7% during the third quarter. Segall Bryant & Hamill LLC now owns 997,125 shares of the auto parts company's stock valued at $33,962,000 after buying an additional 317,246 shares in the last quarter. Finally, Ameriprise Financial Inc. lifted its stake in Gentherm by 42.8% during the third quarter. Ameriprise Financial Inc. now owns 635,066 shares of the auto parts company's stock valued at $21,630,000 after buying an additional 190,432 shares in the last quarter. Institutional investors own 97.13% of the company's stock.

Gentherm Stock Performance

The firm's fifty day simple moving average is $29.69 and its 200 day simple moving average is $33.77. The company has a market capitalization of $978.23 million, a price-to-earnings ratio of 52.32 and a beta of 1.34. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.92 and a quick ratio of 1.30.

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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