Gentherm (NASDAQ:THRM) Sees Large Volume Increase - Still a Buy?

Key Points

• Gentherm’s trading volume rose 20% to approximately 439,622 shares, while the stock closed at $33.36, below its 50-day moving average of $39.24 but near its 200-day average of $34.93.
• Analyst sentiment remains mixed: four analysts rate the shares Buy and five rate them Hold, producing a consensus Hold rating and a $46.50 target price.
• Gentherm beat quarterly earnings and revenue expectations, and announced a $1.90-per-share special dividend plus a $400 million share-repurchase authorization covering up to 36.2% of outstanding shares.

Gentherm Inc (NASDAQ:THRM - Get Free Report) saw an uptick in trading volume on Monday. Approximately 439,622 shares traded hands during trading, an increase of 20% from the previous session's volume of 366,980 shares. The stock last traded at $33.3640 and had previously closed at $31.30.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on THRM shares. Stifel Nicolaus lifted their target price on shares of Gentherm from $44.00 to $59.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. Wall Street Zen cut shares of Gentherm from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 1st. JPMorgan Chase & Co. raised shares of Gentherm from a "neutral" rating to an "overweight" rating and set a $48.00 price objective for the company in a report on Tuesday, September 15th. Freedom Capital lowered shares of Gentherm from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 24th. Finally, Weiss Ratings raised shares of Gentherm from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 29th. Four research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $46.50.

Gentherm Price Performance

The business's fifty day moving average price is $39.24 and its 200-day moving average price is $34.93. The company has a market capitalization of $991.76 million, a P/E ratio of 36.98, a P/E/G ratio of 0.71 and a beta of 1.37. The company has a current ratio of 2.06, a quick ratio of 1.49 and a debt-to-equity ratio of 0.38.

Gentherm (NASDAQ:THRM - Get Free Report) last released its earnings results on Thursday, July 23rd. The auto parts company reported $0.75 EPS for the quarter, beating analysts' consensus estimates of $0.56 by $0.19. Gentherm had a return on equity of 12.06% and a net margin of 1.68%.The business had revenue of $416.17 million for the quarter, compared to analysts' expectations of $382.90 million. During the same quarter in the prior year, the firm earned $0.54 earnings per share. The firm's revenue was up 11.0% on a year-over-year basis. As a group, sell-side analysts predict that Gentherm Inc will post 2.92 earnings per share for the current fiscal year.

Gentherm Dividend Announcement

The company also recently disclosed a special dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Monday, September 28th will be given a dividend of $1.90 per share.

Gentherm declared that its Board of Directors has approved a stock repurchase plan on Thursday, July 23rd that permits the company to buyback $400.00 million in outstanding shares. This buyback authorization permits the auto parts company to repurchase up to 36.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its shares are undervalued.

Insider Buying and Selling at Gentherm

In related news, SVP Wayne Kauffman, III sold 4,700 shares of the firm's stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $43.21, for a total transaction of $203,087.00. Following the transaction, the senior vice president directly owned 27,421 shares of the company's stock, valued at approximately $1,184,861.41. This trade represents a 14.63% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 2.10% of the company's stock.

Institutional Trading of Gentherm

Several hedge funds and other institutional investors have recently bought and sold shares of THRM. BlackRock Inc. purchased a new position in shares of Gentherm during the second quarter worth approximately $165,005,000. Dimensional Fund Advisors LP lifted its holdings in shares of Gentherm by 7.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,474,493 shares of the auto parts company's stock worth $40,960,000 after acquiring an additional 96,280 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in shares of Gentherm in the 2nd quarter valued at $27,822,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of Gentherm by 1.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 554,641 shares of the auto parts company's stock valued at $15,408,000 after purchasing an additional 10,058 shares in the last quarter. Finally, Bank of America Corp DE grew its holdings in shares of Gentherm by 7.6% during the 1st quarter. Bank of America Corp DE now owns 307,770 shares of the auto parts company's stock valued at $8,550,000 after purchasing an additional 21,677 shares during the last quarter. Hedge funds and other institutional investors own 97.13% of the company's stock.

About Gentherm

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 ventilated seats, climate-controlled seating systems, heated steering wheels, thermal management systems for electric vehicles, and other components designed to improve passenger comfort and energy efficiency.

In the medical market, Gentherm provides patient temperature-management products and systems used in hospitals and other healthcare settings.

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