Gentherm (NASDAQ:THRM) Shares Gap Up on Analyst Upgrade

Gentherm Inc (NASDAQ:THRM) gapped up before the market opened on Tuesday after JPMorgan Chase & Co. upgraded the stock from a neutral rating to an overweight rating. The stock had previously closed at $38.23, but opened at $39.81. JPMorgan Chase & Co. now has a $48.00 price target on the stock. Gentherm shares last traded at $38.5260, with a volume of 18,765 shares.

Several other research analysts have also recently issued reports 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. Freedom Capital cut Gentherm from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 24th. CJS Securities started coverage on Gentherm in a research note on Monday. They set an “outperform” rating and a $50.00 price target on the stock. Zacks Research raised Gentherm from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 27th. Finally, Wall Street Zen cut Gentherm from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 1st. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Gentherm has an average rating of “Moderate Buy” and a consensus price target of $46.50.

Insider Buying and Selling at Gentherm

In related news, SVP Wayne Kauffman, III sold 4,700 shares of Gentherm 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 transaction, the senior vice president directly owned 27,421 shares in the company, valued at $1,184,861.41. This trade represents a 14.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 2.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Gentherm

Several hedge funds and other institutional investors have recently made changes to their positions in THRM. Tidal Investments LLC raised its position in 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 acquiring an additional 2,030 shares in the last quarter. Engineers Gate Manager LP boosted its position in shares of Gentherm by 95.0% during the 2nd quarter. Engineers Gate Manager LP now owns 17,200 shares of the auto parts company’s stock worth $587,000 after purchasing an additional 8,380 shares in the last quarter. Corient Private Wealth LP boosted its position in shares of Gentherm by 43.4% during the 2nd quarter. Corient Private Wealth LP now owns 11,780 shares of the auto parts company’s stock worth $402,000 after purchasing an additional 3,565 shares in the last quarter. California State Teachers Retirement System grew its stake in shares of Gentherm by 3,972.4% during the 2nd quarter. California State Teachers Retirement System now owns 1,167,074 shares of the auto parts company’s stock worth $39,809,000 after purchasing an additional 1,138,416 shares during the period. Finally, Odyssean LLC acquired a new position in shares of Gentherm during the 2nd quarter worth $422,000. Hedge funds and other institutional investors own 97.13% of the company’s stock.

Gentherm Price Performance

The stock’s fifty day moving average price is $39.76 and its 200-day moving average price is $34.44. 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 firm has a market cap of $1.18 billion, a PE ratio of 44.35, a P/E/G ratio of 0.89 and a beta of 1.34.

Gentherm (NASDAQ:THRM) last released its quarterly earnings data on Thursday, July 23rd. The auto parts company reported $0.75 EPS for the quarter, topping 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 firm had revenue of $416.17 million for the quarter, compared to the consensus estimate of $382.90 million. During the same quarter in the previous year, the firm earned $0.54 earnings per share. The firm’s revenue was up 11.0% on a year-over-year basis. As a group, equities analysts forecast that Gentherm Inc will post 2.92 EPS for the current fiscal year.

Gentherm announced that its Board of Directors has approved a stock buyback program on Thursday, July 23rd that permits the company to buyback $400.00 million in outstanding shares. This buyback authorization permits the auto parts company to buy up to 36.2% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

About Gentherm

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.