Gentherm (NASDAQ:THRM) Sees Large Volume Increase - What's Next?

Key Points

• Gentherm shares saw a 50% increase in trading volume, with about 714,839 shares changing hands; the stock rose to approximately $30.96 from a prior close of $29.68.
• Analyst sentiment remains mixed, with four Buy ratings and five Holds. The stock has a consensus rating of Hold and an average price target of $46.50.
• Gentherm reported stronger-than-expected quarterly results, including $0.75 in EPS and $416.17 million in revenue, while also paying a $1.90 special dividend and authorizing a $400 million share-repurchase program.

Shares of Gentherm Inc (NASDAQ:THRM - Get Free Report) saw an uptick in trading volume on Monday. Approximately 714,839 shares changed hands during mid-day trading, an increase of 50% from the previous session's volume of 478,047 shares. The stock last traded at $30.9620 and had previously closed at $29.68.

Analysts Set New Price Targets

A number of brokerages recently weighed in on THRM. Weiss Ratings upgraded shares of Gentherm from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 29th. Stifel Nicolaus upped their price objective on shares of Gentherm from $44.00 to $59.00 and gave the company a "buy" rating in a report on Friday, July 24th. JPMorgan Chase & Co. raised Gentherm from a "neutral" rating to an "overweight" rating and set a $48.00 price target for the company in a research report on Tuesday, September 15th. CJS Securities started coverage on shares of Gentherm in a report on Monday, September 14th. They issued an "outperform" rating and a $50.00 price objective on the stock. Finally, Freedom Capital cut Gentherm from a "strong-buy" rating to a "hold" rating in a report on Friday, July 24th. Four analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, Gentherm presently has a consensus rating of "Hold" and an average target price of $46.50.

Gentherm Price Performance

The stock has a market capitalization of $955.58 million, a PE ratio of 35.72, a price-to-earnings-growth ratio of 0.68 and a beta of 1.37. The stock's 50 day moving average is $38.11 and its two-hundred day moving average is $35.02. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.49 and a current ratio of 2.06.

Gentherm (NASDAQ:THRM - Get Free Report) last issued 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 net margin of 1.68% and a return on equity of 12.06%. The business had revenue of $416.17 million during the quarter, compared to analysts' expectations of $382.90 million. During the same period in the prior year, the business earned $0.54 earnings per share. The company's quarterly revenue was up 11.0% compared to the same quarter last year. On average, equities analysts anticipate that Gentherm Inc will post 2.92 EPS for the current fiscal year.

Gentherm Announces Dividend

The firm also recently disclosed a special dividend, which was paid on Wednesday, October 7th. Investors of record on Monday, September 28th were issued a $1.90 dividend.

Gentherm declared that its Board of Directors has authorized a stock repurchase program on Thursday, July 23rd that allows the company to repurchase $400.00 million in shares. This repurchase authorization allows the auto parts company to purchase up to 36.2% of its shares through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Gentherm

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

Institutional Investors Weigh In On Gentherm

Several institutional investors and hedge funds have recently modified their holdings of THRM. Meeder Asset Management Inc. acquired a new stake in Gentherm in the second quarter valued at about $30,000. Allworth Financial LP acquired a new position in Gentherm during the second quarter worth $37,000. Public Employees Retirement System of Ohio purchased a new position in Gentherm in the second quarter worth $39,000. Globeflex Capital L P purchased a new stake in shares of Gentherm during the 2nd quarter worth $133,000. Finally, Palouse Capital Management Inc. increased its holdings in shares of Gentherm by 14.2% in the 2nd quarter. Palouse Capital Management Inc. now owns 4,822 shares of the auto parts company's stock valued at $164,000 after purchasing an additional 600 shares in 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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