Gentherm (NASDAQ:THRM) Trading 12.4% Higher After Strong Earnings

Key Points

• Gentherm shares jumped 12.4% after the company reported quarterly earnings that beat expectations, with the stock trading as high as $41.11. Trading volume was below average during the session.
• The auto parts maker posted EPS of $0.75, well above the $0.56 consensus estimate, and revenue of $416.17 million, also ahead of forecasts. Revenue rose 11% year over year.
• Analysts remain cautious overall despite some target increases: the stock has a consensus Hold rating and an average price target of $38.60, though Stifel Nicolaus raised its target to $44 and kept a Buy rating.

Gentherm Inc (NASDAQ:THRM - Get Free Report)'s stock price traded up 12.4% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $41.11 and last traded at $40.5290. 99,584 shares were traded during mid-day trading, a decline of 66% from the average session volume of 289,277 shares. The stock had previously closed at $36.05.

The auto parts company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.19. Gentherm had a net margin of 1.47% and a return on equity of 11.25%. The business had revenue of $416.17 million during the quarter, compared to the consensus estimate of $382.90 million. During the same quarter last year, the firm earned $0.54 earnings per share. The firm's quarterly revenue was up 11.0% compared to the same quarter last year.

Analysts Set New Price Targets

Several equities analysts recently issued reports on THRM shares. Stifel Nicolaus lifted their price objective on shares of Gentherm from $38.00 to $44.00 and gave the company a "buy" rating in a report on Monday. Weiss Ratings upgraded Gentherm from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, May 8th. Robert W. Baird lifted their price target on Gentherm from $33.00 to $34.00 and gave the company a "neutral" rating in a report on Friday, April 24th. JPMorgan Chase & Co. boosted their price target on Gentherm from $37.00 to $38.00 and gave the stock a "neutral" rating in a research report on Thursday, May 14th. Finally, Wall Street Zen upgraded Gentherm from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 25th. Two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $38.60.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in THRM. Farther Finance Advisors LLC grew its position in Gentherm by 160.3% during the fourth quarter. Farther Finance Advisors LLC now owns 812 shares of the auto parts company's stock valued at $30,000 after buying an additional 500 shares during the period. Los Angeles Capital Management LLC acquired a new position in shares of Gentherm in the fourth quarter worth about $35,000. Eagle Bay Advisors LLC acquired a new stake in shares of Gentherm during the 4th quarter valued at about $50,000. Palladiem LLC purchased a new position in shares of Gentherm in the 4th quarter valued at about $52,000. Finally, Nisa Investment Advisors LLC increased its stake in shares of Gentherm by 21.5% in the 4th quarter. Nisa Investment Advisors LLC now owns 1,994 shares of the auto parts company's stock valued at $73,000 after purchasing an additional 353 shares in the last quarter. Hedge funds and other institutional investors own 97.13% of the company's stock.

Gentherm Stock Up 15.0%

The company has a market cap of $1.27 billion, a price-to-earnings ratio of 55.38 and a beta of 1.38. The company has a current ratio of 1.97, a quick ratio of 1.36 and a debt-to-equity ratio of 0.31. The business has a fifty day moving average of $34.91 and a two-hundred day moving average of $32.82.

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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