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

Gentherm Inc (NASDAQ:THRM) shares were down 3.4% on Monday after Freedom Capital downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $40.96 and last traded at $41.25. 35,690 shares were traded 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.

Other equities analysts have also recently issued reports about the stock. Robert W. Baird upped their price objective on shares of Gentherm from $33.00 to $34.00 and gave the stock a “neutral” rating in a research report on Friday, April 24th. Weiss Ratings upgraded shares of Gentherm from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, May 8th. Wall Street Zen raised shares of Gentherm from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 25th. 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 report on Friday. Finally, JPMorgan Chase & Co. upped their price target on shares of Gentherm from $41.00 to $48.00 and gave the stock a “neutral” rating in a report on Friday, July 24th. Two research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $43.60.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Farther Finance Advisors LLC grew its holdings in Gentherm by 160.3% during the 4th quarter. Farther Finance Advisors LLC now owns 812 shares of the auto parts company’s stock worth $30,000 after acquiring an additional 500 shares during the last quarter. Los Angeles Capital Management LLC bought a new position in shares of Gentherm during the fourth quarter valued at $35,000. Eagle Bay Advisors LLC acquired a new position in shares of Gentherm during the fourth quarter worth $50,000. Palladiem LLC acquired a new position in shares of Gentherm during the fourth quarter worth $52,000. Finally, Nisa Investment Advisors LLC grew its stake in shares of Gentherm by 21.5% in the fourth quarter. Nisa Investment Advisors LLC now owns 1,994 shares of the auto parts company’s stock worth $73,000 after purchasing an additional 353 shares during the last quarter. Institutional investors own 97.13% of the company’s stock.

Gentherm Trading Up 0.0%

The company has a market cap of $1.29 billion, a P/E ratio of 48.37 and a beta of 1.38. The firm’s 50 day moving average is $35.92 and its two-hundred day moving average is $32.97. The company has a quick ratio of 1.49, a current ratio of 2.06 and a debt-to-equity ratio of 0.38.

Gentherm (NASDAQ:THRM) last announced its earnings results on Thursday, July 23rd. The auto parts company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.19. The business had revenue of $404.94 million during the quarter, compared to analyst estimates of $382.90 million. Gentherm had a return on equity of 12.06% and a net margin of 1.68%.Gentherm’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same period last year, the company earned $0.54 EPS. 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 authorized a stock repurchase plan on Thursday, July 23rd that authorizes the company to repurchase $400.00 million in shares. This repurchase authorization authorizes the auto parts company to buy up to 36.2% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is 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.