Gentherm (NASDAQ:THRM) Stock Price Crosses Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Gentherm shares crossed below its 200-day moving average of $33.97 and last traded around $28.61 (intraday low $28.37), a bearish technical signal.
• The company posted an quarterly EPS miss ($0.49 vs. $0.57 expected) while revenue rose 8.5% to $382.8M, but net margin remained thin at 1.22% and the trailing P/E is about 46.9.
• Wall Street’s consensus rating is Hold with a $38.60 target after several firms cut price goals, and institutional investors own roughly 97.13% of the stock with major funds modestly increasing positions.

Gentherm Inc (NASDAQ:THRM - Get Free Report) shares crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $33.97 and traded as low as $28.37. Gentherm shares last traded at $28.61, with a volume of 278,776 shares.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Wall Street Zen lowered Gentherm from a "strong-buy" rating to a "buy" rating in a report on Saturday, February 21st. Stifel Nicolaus decreased their price objective on Gentherm from $41.00 to $37.00 and set a "buy" rating for the company in a report on Tuesday. Argus raised Gentherm to a "hold" rating in a report on Friday, February 27th. Roth Mkm decreased their price objective on Gentherm from $44.00 to $39.00 and set a "buy" rating for the company in a report on Monday, March 23rd. Finally, Robert W. Baird decreased their price objective on Gentherm from $42.00 to $36.00 and set a "neutral" rating for the company in a report on Friday, February 20th. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $38.60.

Gentherm Stock Down 2.5%

The company has a current ratio of 1.92, a quick ratio of 1.30 and a debt-to-equity ratio of 0.26. The firm has a market cap of $876.87 million, a PE ratio of 46.90 and a beta of 1.34. The stock has a fifty day simple moving average of $30.00 and a two-hundred day simple moving average of $33.97.

Gentherm (NASDAQ:THRM - Get Free Report) last posted its earnings results on Thursday, February 19th. The auto parts company reported $0.49 earnings per share for the quarter, missing analysts' consensus estimates of $0.57 by ($0.08). The company had revenue of $382.79 million for the quarter, compared to analysts' expectations of $371.91 million. Gentherm had a net margin of 1.22% and a return on equity of 10.07%. The firm's quarterly revenue was up 8.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.29 EPS. As a group, sell-side analysts expect that Gentherm Inc will post 3.1 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in Gentherm by 0.9% during the 4th quarter. Vanguard Group Inc. now owns 3,332,197 shares of the auto parts company's stock valued at $121,192,000 after buying an additional 29,214 shares in the last quarter. Dimensional Fund Advisors LP grew 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 valued at $50,128,000 after buying an additional 16,529 shares in the last quarter. Harvey Partners LLC grew 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 valued at $34,894,000 after buying an additional 431,072 shares in the last quarter. Segall Bryant & Hamill LLC grew its holdings in Gentherm by 46.7% during the 3rd 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. grew its holdings in Gentherm by 42.8% during the 3rd 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. Hedge funds and other institutional investors own 97.13% of the company's stock.

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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