Gentherm (NASDAQ:THRM) Stock Price Up 7.8% Following Earnings Beat

Key Points

• Gentherm's stock price increased by 7.8% after reporting an earnings per share (EPS) of $0.73, surpassing the expected $0.64, along with a 4.1% year-over-year revenue growth.
• The company faced mixed reactions from analysts, with one upgrade to a "strong-buy" rating, while others maintained hold or sell ratings, resulting in a current consensus rating of "Moderate Buy."
• Institutional investors significantly increased their stakes in Gentherm during the second quarter, with Allworth Financial LP growing its position by over 1,600%.

Gentherm Inc (NASDAQ:THRM - Get Free Report) rose 7.8% during trading on Thursday following a better than expected earnings announcement. The company traded as high as $37.49 and last traded at $37.02. Approximately 66,939 shares were traded during trading, a decline of 77% from the average daily volume of 289,178 shares. The stock had previously closed at $34.35.

The auto parts company reported $0.73 EPS for the quarter, topping the consensus estimate of $0.64 by $0.09. Gentherm had a return on equity of 9.90% and a net margin of 2.18%.During the same quarter in the previous year, the business earned $0.75 EPS. The business's quarterly revenue was up 4.1% compared to the same quarter last year. Gentherm has set its FY 2025 guidance at EPS.

Analyst Upgrades and Downgrades

THRM has been the topic of several recent analyst reports. Baird R W raised Gentherm from a "hold" rating to a "strong-buy" rating in a report on Friday, July 11th. Zacks Research lowered shares of Gentherm from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 20th. Weiss Ratings restated a "sell (d+)" rating on shares of Gentherm in a research report on Wednesday, October 8th. Wall Street Zen upgraded shares of Gentherm from a "hold" rating to a "buy" rating in a research report on Friday, September 5th. Finally, Robert W. Baird lifted their price target on shares of Gentherm from $28.00 to $35.00 and gave the stock an "outperform" rating in a research report on Friday, July 11th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $47.67.

Insiders Place Their Bets

In other Gentherm news, SVP Barbara J. Runyon sold 3,348 shares of Gentherm stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $34.82, for a total transaction of $116,577.36. Following the transaction, the senior vice president directly owned 31,316 shares in the company, valued at approximately $1,090,423.12. The trade was a 9.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On Gentherm

Several institutional investors and hedge funds have recently added to or reduced their stakes in THRM. Allworth Financial LP grew its position in Gentherm by 1,609.1% during the 2nd quarter. Allworth Financial LP now owns 940 shares of the auto parts company's stock worth $27,000 after purchasing an additional 885 shares in the last quarter. Hantz Financial Services Inc. grew its position in Gentherm by 16,716.7% during the 2nd quarter. Hantz Financial Services Inc. now owns 1,009 shares of the auto parts company's stock worth $29,000 after purchasing an additional 1,003 shares in the last quarter. Nisa Investment Advisors LLC grew its position in Gentherm by 295.4% during the 2nd quarter. Nisa Investment Advisors LLC now owns 1,364 shares of the auto parts company's stock worth $39,000 after purchasing an additional 1,019 shares in the last quarter. Parallel Advisors LLC grew its position in Gentherm by 455.8% during the 2nd quarter. Parallel Advisors LLC now owns 1,434 shares of the auto parts company's stock worth $41,000 after purchasing an additional 1,176 shares in the last quarter. Finally, PNC Financial Services Group Inc. grew its position in Gentherm by 168.7% during the 2nd quarter. PNC Financial Services Group Inc. now owns 1,913 shares of the auto parts company's stock worth $54,000 after purchasing an additional 1,201 shares in the last quarter. 97.13% of the stock is currently owned by hedge funds and other institutional investors.

Gentherm Stock Performance

The firm's 50-day simple moving average is $35.28 and its two-hundred day simple moving average is $30.72. The stock has a market capitalization of $1.12 billion, a PE ratio of 35.79 and a beta of 1.39. The company has a current ratio of 2.01, a quick ratio of 1.35 and a debt-to-equity ratio of 0.30.

Gentherm Company Profile

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins.

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