Gentherm (NASDAQ:THRM) Stock: Insider William Presley Purchases 5,000 Shares

Key Points

• CEO William Presley purchased 5,000 Gentherm shares at an average price of $26, investing $130,000 and increasing his direct ownership by 2.8% to 183,314 shares.
• Gentherm’s latest quarter showed revenue growth of 4.7% to $405.1 million, but EPS of $0.33 missed analyst estimates of $0.64. Shares traded near $28.59, close to the company’s one-year low.
• The company authorized a $400 million share-repurchase program covering up to 36.2% of shares and paid a special dividend of $1.90 per share. Analysts maintained a consensus “Hold” rating with a $44.17 target price.

Gentherm Inc (NASDAQ:THRM - Get Free Report) CEO William Presley purchased 5,000 shares of the company's stock in a transaction on Friday, October 23rd. The shares were purchased at an average price of $26.00 per share, with a total value of $130,000.00. Following the completion of the purchase, the chief executive officer directly owned 183,314 shares of the company's stock, valued at $4,766,164. The trade was a 2.80% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.

Gentherm Trading Down 0.0%

Shares of Gentherm stock traded down $0.01 during trading hours on Monday, reaching $28.59. The stock had a trading volume of 2,439,104 shares, compared to its average volume of 2,663,726. The firm has a market capitalization of $878.86 million, a price-to-earnings ratio of 95.30, a P/E/G ratio of 0.66 and a beta of 1.37. Gentherm Inc has a 1 year low of $25.31 and a 1 year high of $48.35. The company has a current ratio of 2.05, a quick ratio of 1.47 and a debt-to-equity ratio of 0.44. The firm has a 50 day simple moving average of $35.33 and a two-hundred day simple moving average of $34.16.

Gentherm (NASDAQ:THRM - Get Free Report) last issued its earnings results on Thursday, October 22nd. The auto parts company reported $0.33 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.64 by ($0.31). The firm had revenue of $405.10 million for the quarter, compared to analysts' expectations of $404.16 million. Gentherm had a return on equity of 10.30% and a net margin of 0.57%. The firm's revenue for the quarter was up 4.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.73 EPS. As a group, equities research analysts anticipate that Gentherm Inc will post 2.89 earnings per share for the current year.

Gentherm announced that its board has initiated a stock repurchase program on Thursday, July 23rd that allows the company to repurchase $400 million in shares. This buyback authorization allows the auto parts company to buy up to 36.2% of its shares through open market purchases. Stock buyback programs are typically a sign that the company's board of directors believes its shares are undervalued.

Gentherm Announces Dividend

The firm also recently declared a special dividend, which was paid on Wednesday, October 7th. Shareholders of record on Monday, September 28th were given a dividend of $1.90 per share.

Analyst Ratings Changes

A number of equities analysts have recently commented on THRM shares. Zacks Research downgraded shares of Gentherm from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. JPMorgan Chase & Co. reduced their target price on shares of Gentherm from $48.00 to $47.00 and set an "overweight" rating on the stock in a report on Friday. Stifel Nicolaus decreased their price target on shares of Gentherm from $48.00 to $46.00 and set a "buy" rating for the company in a research report on Friday. Weiss Ratings upgraded Gentherm from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 29th. Finally, Freedom Capital lowered Gentherm from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 24th. Four equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $44.17.

Hedge Funds Weigh In On Gentherm

A number of institutional investors and hedge funds have recently bought and sold shares of THRM. Bank of America Corp DE acquired a new position in shares of Gentherm during the second quarter worth $9,986,000. BlackRock Inc. purchased a new position in shares of Gentherm in the second quarter valued at $165,005,000. Deutsche Bank AG purchased a new position in shares of Gentherm in the second quarter valued at $1,296,000. Walleye Capital LLC acquired a new stake in Gentherm during the 2nd quarter valued at $802,000. Finally, Renaissance Technologies LLC grew its holdings in Gentherm by 24.5% during the 1st quarter. Renaissance Technologies LLC now owns 271,464 shares of the auto parts company's stock valued at $7,541,000 after purchasing an additional 53,400 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 develops and manufactures thermal management and comfort technologies for the automotive and medical industries. The company's automotive products include heated and cooled seating systems, climate-controlled seats, heated steering wheels, seat ventilation, and other technologies designed to improve passenger comfort and manage temperature.

Gentherm also provides battery thermal management systems and related technologies that support the performance, efficiency, and safety of electrified vehicles.

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