Gentherm (NASDAQ:THRM) Shares Down 3.4% Following Analyst Downgrade

Gentherm Inc (NASDAQ:THRM)’s share price dropped 3.4% on Monday after Freedom Capital downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $40.96 and last traded at $41.25. 35,690 shares changed hands during mid-day trading, a decline of 88% from the average session volume of 304,269 shares. The stock had previously closed at $42.69.

Several other equities analysts have also recently commented on the company. Robert W. Baird boosted their target price on Gentherm from $33.00 to $34.00 and gave the stock a “neutral” rating in a research report on Friday, April 24th. Weiss Ratings raised Gentherm from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, May 8th. JPMorgan Chase & Co. lifted their price target on Gentherm from $41.00 to $48.00 and gave the company a “neutral” rating in a research report on Friday, July 24th. Stifel Nicolaus boosted their price objective on Gentherm from $44.00 to $59.00 and gave the stock a “buy” rating in a report on Friday. Finally, Wall Street Zen upgraded shares of Gentherm from a “buy” rating to a “strong-buy” rating in a research report on Saturday, April 25th. Two research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $43.60.

Institutional Investors Weigh In On Gentherm

Several hedge funds have recently added to or reduced their stakes in THRM. Palouse Capital Management Inc. increased its position in shares of Gentherm by 14.2% during 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 during the last quarter. Moody National Bank Trust Division raised its holdings in shares of Gentherm by 89.1% during the 2nd quarter. Moody National Bank Trust Division now owns 35,808 shares of the auto parts company’s stock valued at $1,221,000 after buying an additional 16,871 shares in the last quarter. Empowered Funds LLC bought a new stake in Gentherm in the 1st quarter worth approximately $1,008,000. Bank of America Corp DE lifted its position in Gentherm by 7.6% in the 1st quarter. Bank of America Corp DE now owns 307,770 shares of the auto parts company’s stock worth $8,550,000 after buying an additional 21,677 shares during the last quarter. Finally, Quantinno Capital Management LP boosted its stake in Gentherm by 7.5% in the first quarter. Quantinno Capital Management LP now owns 19,900 shares of the auto parts company’s stock worth $553,000 after buying an additional 1,386 shares in the last quarter. Institutional investors own 97.13% of the company’s stock.

Gentherm Stock Performance

The company has a debt-to-equity ratio of 0.38, a current ratio of 2.06 and a quick ratio of 1.49. The company has a 50 day simple moving average of $35.92 and a 200-day simple moving average of $32.97. The firm has a market cap of $1.29 billion, a PE ratio of 48.37 and a beta of 1.38.

Gentherm (NASDAQ:THRM) last posted its quarterly earnings results on Thursday, July 23rd. The auto parts company reported $0.75 EPS for the quarter, topping the consensus estimate of $0.56 by $0.19. The firm had revenue of $404.94 million for the quarter, compared to the consensus estimate of $382.90 million. Gentherm had a net margin of 1.68% and a return on equity of 12.06%. The business’s revenue was up 11.0% compared to the same quarter last year. During the same period last year, the firm posted $0.54 earnings per share. As a group, equities research analysts anticipate that Gentherm Inc will post 2.84 EPS for the current year.

Gentherm announced that its Board of Directors has initiated a share buyback plan on Thursday, July 23rd that allows the company to repurchase $400.00 million in shares. This repurchase authorization allows the auto parts company to reacquire up to 36.2% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

Gentherm Company Profile

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.