Gentherm (NASDAQ:THRM) Downgraded by Zacks Research to “Strong Sell”

Zacks Research cut shares of Gentherm (NASDAQ:THRM) from a hold rating to a strong sell rating in a research note released on Wednesday morning,Zacks reports.

Other analysts have also issued reports about the stock. CJS Securities assumed coverage on shares of Gentherm in a research report on Monday, September 14th. They set an “outperform” rating and a $50.00 target price on the stock. Freedom Capital cut Gentherm from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 24th. Wall Street Zen lowered Gentherm from a “buy” rating to a “hold” rating in a research note on Saturday, October 24th. Stifel Nicolaus lowered their target price on shares of Gentherm from $48.00 to $46.00 and set a “buy” rating on the stock in a report on Friday, October 23rd. Finally, Weiss Ratings cut shares of Gentherm from a “hold (c)” rating to a “sell (d+)” rating in a research note on Monday. Five investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $43.57.

Gentherm Trading Down 2.9%

Gentherm stock opened at $32.20 on Wednesday. The business has a 50 day moving average price of $34.73 and a two-hundred day moving average price of $34.07. The company has a quick ratio of 1.47, a current ratio of 2.05 and a debt-to-equity ratio of 0.44. Gentherm has a 12 month low of $25.31 and a 12 month high of $48.35. The stock has a market cap of $989.83 million, a price-to-earnings ratio of 107.33, a price-to-earnings-growth ratio of 1.25 and a beta of 1.37.

Gentherm (NASDAQ:THRM) last released its quarterly earnings data on Thursday, October 22nd. The auto parts company reported $0.33 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.64 by ($0.31). The firm had revenue of $405.10 million for the quarter, compared to the consensus estimate of $404.16 million. Gentherm had a net margin of 0.57% and a return on equity of 10.30%. The business’s revenue for the quarter was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.73 earnings per share. As a group, equities analysts forecast that Gentherm will post 2.65 EPS for the current year.

Gentherm Dividend Announcement

The company also recently announced a special dividend, which was paid on Wednesday, October 7th. Stockholders of record on Monday, September 28th were paid a $1.90 dividend.

Gentherm announced that its board has authorized a share repurchase program on Thursday, July 23rd that permits the company to repurchase $400 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. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Gentherm

In other news, CEO William Presley purchased 5,000 shares of the firm’s stock in a transaction that occurred on Friday, October 23rd. The shares were acquired at an average price of $26.00 per share, for a total transaction of $130,000.00. Following the completion of the acquisition, the chief executive officer directly owned 183,314 shares in the company, valued at approximately $4,766,164. The trade was a 2.80% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Paul Anthony Mascarenas bought 20,000 shares of Gentherm stock in a transaction dated Friday, October 23rd. The stock was acquired at an average cost of $26.63 per share, for a total transaction of $532,600.00. Following the purchase, the director directly owned 22,677 shares in the company, valued at approximately $603,888.51. The trade was a 747.10% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 2.10% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Bridge City Capital LLC boosted its position in shares of Gentherm by 19.5% during the third quarter. Bridge City Capital LLC now owns 75,667 shares of the auto parts company’s stock worth $2,520,000 after purchasing an additional 12,350 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Gentherm in the third quarter worth about $429,000. Viking Fund Management LLC bought a new stake in Gentherm during the 3rd quarter worth approximately $266,000. Moody National Bank Trust Division increased its stake in Gentherm by 8.3% during the 3rd quarter. Moody National Bank Trust Division now owns 38,780 shares of the auto parts company’s stock worth $1,291,000 after purchasing an additional 2,972 shares in the last quarter. Finally, Tidal Investments LLC lifted its stake in Gentherm by 9.4% in the second quarter. Tidal Investments LLC now owns 23,651 shares of the auto parts company’s stock valued at $807,000 after buying an additional 2,030 shares in the last quarter. Institutional investors and hedge funds own 97.13% of the company’s stock.

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 cooled seating systems, climate-controlled seats, heated steering wheels, seat ventilation, and other technologies designed to improve passenger comfort and manage temperature.

Gentherm also provides battery thermal management systems and related technologies that support the performance, efficiency, and safety of electrified vehicles.