Gentherm (NASDAQ:THRM) Shares Gap Down – Here’s Why

Shares of Gentherm Inc (NASDAQ:THRM – Get Free Report) gapped down prior to trading on Friday. The stock had previously closed at $33.63, but opened at $31.54. Gentherm shares last traded at $30.3060, with a volume of 349,636 shares trading hands.

Analyst Ratings Changes

A number of equities analysts recently commented on THRM shares. CJS Securities started coverage on Gentherm in a report on Monday, September 14th. They set an “outperform” rating and a $50.00 target price for the company. JPMorgan Chase & Co. upgraded shares of Gentherm from a “neutral” rating to an “overweight” rating and set a $48.00 price target on the stock in a research note on Tuesday, September 15th. Wall Street Zen cut shares of Gentherm from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 1st. Zacks Research lowered shares of Gentherm from a “strong-buy” rating to a “hold” rating in a research note on Monday. Finally, Roth Capital reiterated a “buy” rating and set a $50.00 target price on shares of Gentherm in a report on Wednesday, July 29th. Four analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, Gentherm currently has a consensus rating of “Hold” and an average target price of $46.50.

View Our Latest Stock Analysis on Gentherm

Gentherm Stock Down 11.6%

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 company has a market cap of $914.05 million, a price-to-earnings ratio of 34.41, a price-to-earnings-growth ratio of 0.76 and a beta of 1.37. The business has a 50-day simple moving average of $39.47 and a 200-day simple moving average of $34.91.

Gentherm (NASDAQ:THRM – Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The auto parts company reported $0.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.19. Gentherm had a return on equity of 12.06% and a net margin of 1.68%.The business had revenue of $416.17 million during the quarter, compared to analysts’ expectations of $382.90 million. During the same quarter last year, the business posted $0.54 EPS. The business’s quarterly revenue was up 11.0% compared to the same quarter last year. On average, equities analysts anticipate that Gentherm Inc will post 2.92 earnings per share for the current fiscal year.

Gentherm Dividend Announcement

The company 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 dividend of $1.90 per share.

Gentherm declared that its board has approved a stock repurchase program on Thursday, July 23rd that permits the company to buyback $400.00 million in shares. This buyback authorization permits the auto parts company to reacquire up to 36.2% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Insider Activity at Gentherm

In other news, SVP Wayne Kauffman, III sold 4,700 shares of the firm’s 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 sale, the senior vice president directly owned 27,421 shares in the company, valued at approximately $1,184,861.41. This trade represents a 14.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Gentherm

Several large investors have recently bought and sold shares of the business. Meeder Asset Management Inc. acquired a new stake in Gentherm in the second quarter valued at $30,000. Allworth Financial LP acquired a new position in shares of Gentherm during the 2nd quarter worth about $37,000. Public Employees Retirement System of Ohio purchased a new position in shares of Gentherm in the 2nd quarter valued at about $39,000. Palladiem LLC purchased a new position in shares of Gentherm in the 4th quarter valued at about $52,000. Finally, Globeflex Capital L P acquired a new stake in shares of Gentherm during the 2nd quarter worth about $133,000. Hedge funds and other institutional investors own 97.13% of the company’s stock.

Gentherm Company Profile

(Get Free Report)

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.

Further Reading

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