Gentherm (NASDAQ:THRM) Shares Break Above 200-Day Moving Average - Here's What Happened

Key Points

• Gentherm shares broke above their 200-day moving average, reaching $35.44 and last trading at $35.21 on volume of approximately 863,395 shares.
• Analyst sentiment is generally positive: Gentherm has a consensus rating of “Moderate Buy” and an average price target of $46.50, with recent upgrades from Stifel Nicolaus and JPMorgan.
• The company exceeded quarterly earnings and revenue expectations, while also announcing a $1.90-per-share special dividend and a $400 million share-repurchase authorization.

Gentherm Inc (NASDAQ:THRM - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $34.72 and traded as high as $35.44. Gentherm shares last traded at $35.21, with a volume of 863,395 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on THRM. Zacks Research raised shares of Gentherm from a "hold" rating to a "strong-buy" rating in a report on Monday, July 27th. Stifel Nicolaus upped their price target on shares of Gentherm from $44.00 to $59.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Wall Street Zen lowered shares of Gentherm from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 1st. JPMorgan Chase & Co. upgraded shares of Gentherm from a "neutral" rating to an "overweight" rating and set a $48.00 price objective on the stock in a research report on Tuesday, September 15th. Finally, Weiss Ratings upgraded shares of Gentherm from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, Gentherm presently has an average rating of "Moderate Buy" and a consensus target price of $46.50.

Gentherm Trading Up 3.9%

The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.49 and a current ratio of 2.06. The company has a market capitalization of $1.08 billion, a PE ratio of 40.47, a PEG ratio of 0.77 and a beta of 1.34. The stock has a fifty day moving average of $39.86 and a 200 day moving average of $34.72.

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

Gentherm Announces Dividend

The business also recently announced a special dividend, which will be paid on Wednesday, October 7th. Investors of record on Monday, September 28th will be paid a dividend of $1.90 per share.

Gentherm declared that its board has authorized a stock buyback plan on Thursday, July 23rd that authorizes the company to buyback $400.00 million in shares. This buyback authorization authorizes the auto parts company to purchase up to 36.2% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Insider Transactions at Gentherm

In other Gentherm news, SVP Wayne Kauffman, III sold 4,700 shares of the business's stock in a transaction on 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 owned 27,421 shares in the company, valued at $1,184,861.41. The trade was a 14.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Gentherm

Large investors have recently made changes to their positions in the company. Tidal Investments LLC lifted its position in shares of Gentherm by 9.4% in the second quarter. Tidal Investments LLC now owns 23,651 shares of the auto parts company's stock worth $807,000 after buying an additional 2,030 shares in the last quarter. Engineers Gate Manager LP increased its stake in Gentherm by 95.0% in the 2nd quarter. Engineers Gate Manager LP now owns 17,200 shares of the auto parts company's stock worth $587,000 after acquiring an additional 8,380 shares during the last quarter. Corient Private Wealth LP increased its stake in Gentherm by 43.4% in the 2nd quarter. Corient Private Wealth LP now owns 11,780 shares of the auto parts company's stock worth $402,000 after acquiring an additional 3,565 shares during the last quarter. Odyssean LLC purchased a new stake in shares of Gentherm during the 2nd quarter worth approximately $422,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Gentherm by 4.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 61,056 shares of the auto parts company's stock worth $2,083,000 after acquiring an additional 2,730 shares in the last quarter. 97.13% of the stock is owned by institutional investors.

Gentherm Company Profile

Gentherm Inc NASDAQ: THRM develops and manufactures thermal management and pneumatic comfort technologies for the automotive and medical markets. The company's products are designed to improve occupant comfort, regulate temperature and support specialized healthcare applications.

For automotive customers, Gentherm supplies heated and ventilated seating systems, climate-controlled seats, heated steering wheels, neck-conditioning systems and other interior comfort technologies. Its portfolio also includes battery thermal management and related solutions intended to help manage temperature in electrified vehicles.

In the medical market, Gentherm provides patient temperature-management systems used for warming and cooling during medical procedures and critical-care applications.

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