Gentherm (NASDAQ:THRM) Sees Unusually-High Trading Volume – Here’s Why

Gentherm Inc (NASDAQ:THRM) shares saw an uptick in trading volume on Monday. Approximately 439,622 shares changed 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

A number of research firms have weighed in on THRM. Zacks Research downgraded Gentherm from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Freedom Capital cut Gentherm from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 24th. Wall Street Zen downgraded Gentherm from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 1st. CJS Securities initiated coverage on shares of Gentherm in a research note on Monday, September 14th. They issued an “outperform” rating and a $50.00 target price for the company. Finally, Roth Capital restated a “buy” rating and set a $50.00 target price on shares of Gentherm in a report on Wednesday, July 29th. Four investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Gentherm presently has an average rating of “Hold” and an average price target of $46.50.

Gentherm Trading Down 3.8%

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 business has a 50-day simple moving average of $38.82 and a two-hundred day simple moving average of $34.98. The stock has a market cap of $952.91 million, a price-to-earnings ratio of 35.63, a P/E/G ratio of 0.74 and a beta of 1.37.

Gentherm (NASDAQ:THRM) last issued its 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 company had revenue of $416.17 million during the quarter, compared to the consensus estimate of $382.90 million. Gentherm had a return on equity of 12.06% and a net margin of 1.68%.The firm’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same period in the previous year, the company posted $0.54 EPS. Equities analysts forecast that Gentherm Inc will post 2.92 EPS for the current fiscal year.

Gentherm Announces Dividend

The business also recently declared a special dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Monday, September 28th will be issued a $1.90 dividend.

Gentherm announced that its Board of Directors has initiated a stock buyback program on Thursday, July 23rd that authorizes the company to buyback $400.00 million in shares. This buyback authorization authorizes the auto parts company to repurchase up to 36.2% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its stock is undervalued.

Insider Activity

In other news, SVP Wayne Kauffman, III sold 4,700 shares of the company’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $43.21, for a total value of $203,087.00. Following the transaction, the senior vice president owned 27,421 shares of the company’s stock, valued at approximately $1,184,861.41. This represents a 14.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 2.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Gentherm

Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Gentherm in the 2nd quarter worth about $165,005,000. Deutsche Bank AG acquired a new position in shares of Gentherm during the 2nd quarter worth approximately $1,296,000. Renaissance Technologies LLC grew its position in shares of Gentherm by 24.5% during the 1st quarter. Renaissance Technologies LLC now owns 271,464 shares of the auto parts company’s stock worth $7,541,000 after purchasing an additional 53,400 shares in the last quarter. Walleye Capital LLC bought a new position in shares of Gentherm during the second quarter worth approximately $802,000. Finally, Bessemer Group Inc. increased its holdings in shares of Gentherm by 50.5% during the first quarter. Bessemer Group Inc. now owns 129,695 shares of the auto parts company’s stock worth $3,603,000 after purchasing an additional 43,500 shares during the period. 97.13% of the stock is currently owned by institutional investors.

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.