Gentherm (NASDAQ:THRM) Trading Down 3.4% – Should You Sell?

Gentherm Inc (NASDAQ:THRM)’s stock price dropped 3.4% on Monday . The stock traded as low as $40.96 and last traded at $41.25. Approximately 35,690 shares changed hands during trading, a decline of 88% from the average daily volume of 304,269 shares. The stock had previously closed at $42.69.

Analysts Set New Price Targets

Several analysts have issued reports on THRM shares. Stifel Nicolaus upped their price target on shares of Gentherm from $44.00 to $59.00 and gave the company a “buy” rating in a report on Friday. JPMorgan Chase & Co. raised their price objective on shares of Gentherm from $41.00 to $48.00 and gave the stock a “neutral” rating in a research note on Friday. Robert W. Baird lifted their price objective 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 research note on Friday, May 8th. Finally, Wall Street Zen raised Gentherm from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 25th. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $43.60.

Gentherm Stock Down 2.0%

The firm has a market capitalization of $1.28 billion, a price-to-earnings ratio of 48.07 and a beta of 1.38. The company has a current ratio of 2.06, a quick ratio of 1.49 and a debt-to-equity ratio of 0.38. The firm has a 50 day moving average price of $35.44 and a two-hundred day moving average price of $32.92.

Gentherm (NASDAQ:THRM) last posted its earnings results on Thursday, July 23rd. The auto parts company reported $0.75 earnings per share (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 $404.94 million during the quarter, compared to the consensus estimate of $382.90 million. During the same quarter in the prior year, the company earned $0.54 EPS. The company’s revenue was up 11.0% on a year-over-year basis. On average, equities analysts expect that Gentherm Inc will post 2.75 earnings per share for the current fiscal year.

Gentherm announced that its board has initiated a stock repurchase program on Thursday, July 23rd that allows the company to buyback $400.00 million in shares. This buyback authorization allows the auto parts company to purchase up to 36.2% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Gentherm

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. lifted its holdings in shares of Gentherm by 0.9% during the 4th quarter. Vanguard Group Inc. now owns 3,332,197 shares of the auto parts company’s stock valued at $121,192,000 after acquiring an additional 29,214 shares in the last quarter. Dimensional Fund Advisors LP raised its position in Gentherm by 7.0% in the first quarter. Dimensional Fund Advisors LP now owns 1,474,493 shares of the auto parts company’s stock valued at $40,960,000 after purchasing an additional 96,280 shares during the period. Ameriprise Financial Inc. lifted its stake in shares of Gentherm by 42.8% during the third quarter. Ameriprise Financial Inc. now owns 635,066 shares of the auto parts company’s stock worth $21,630,000 after purchasing an additional 190,432 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in shares of Gentherm by 1.8% during the first quarter. Arrowstreet Capital Limited Partnership now owns 554,641 shares of the auto parts company’s stock worth $15,408,000 after purchasing an additional 10,058 shares in the last quarter. Finally, Qube Research & Technologies Ltd boosted its position in shares of Gentherm by 56.5% in the second quarter. Qube Research & Technologies Ltd now owns 469,097 shares of the auto parts company’s stock worth $13,271,000 after buying an additional 169,401 shares during the period. Hedge funds and other institutional investors own 97.13% of the company’s stock.

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.