Gentherm (NASDAQ:THRM) Sets New 52-Week Low on Disappointing Earnings

Gentherm Inc (NASDAQ:THRM)’s stock price reached a new 52-week low on Thursday following a dissappointing earnings announcement. The company traded as low as $27.00 and last traded at $27.4930, with a volume of 236,127 shares changing hands. The stock had previously closed at $28.44.

The auto parts company reported $0.33 earnings per share for the quarter, missing analysts’ consensus estimates of $0.64 by ($0.31). The company had revenue of $405.10 million during the quarter, compared to analyst estimates of $404.16 million. Gentherm had a return on equity of 12.06% and a net margin of 1.68%. Gentherm’s quarterly revenue was up 4.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.73 EPS.

Gentherm Announces Dividend

The business also recently announced a special dividend, which was paid on Wednesday, October 7th. Investors of record on Monday, September 28th were given a dividend of $1.90 per share.

Gentherm declared that its Board of Directors has approved a share buyback plan on Thursday, July 23rd that authorizes the company to repurchase $400.00 million in outstanding shares. This buyback authorization authorizes the auto parts company to repurchase up to 36.2% of its shares through open market purchases. Share buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several research analysts recently commented on THRM shares. Wall Street Zen cut Gentherm from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 1st. Weiss Ratings raised shares of Gentherm from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 29th. Freedom Capital cut shares of Gentherm from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 24th. Zacks Research cut shares of Gentherm from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Finally, JPMorgan Chase & Co. raised shares of Gentherm from a “neutral” rating to an “overweight” rating and set a $48.00 price objective for the company in a report on Tuesday, September 15th. Four analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $44.67.

Insider Buying and Selling at Gentherm

In other Gentherm news, SVP Wayne Kauffman, III sold 4,700 shares of the company’s stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $43.21, for a total transaction of $203,087.00. Following the transaction, the senior vice president owned 27,421 shares of the company’s stock, valued at approximately $1,184,861.41. This represents a 14.63% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Gentherm

Hedge funds and other institutional investors have recently bought and sold shares of the business. Viking Fund Management LLC bought a new stake in shares of Gentherm in the 3rd quarter valued at about $266,000. Moody National Bank Trust Division raised its position in shares of Gentherm by 8.3% in the 3rd quarter. Moody National Bank Trust Division now owns 38,780 shares of the auto parts company’s stock valued at $1,291,000 after acquiring an additional 2,972 shares during the period. Tidal Investments LLC raised its position in shares of Gentherm by 9.4% in the 2nd quarter. Tidal Investments LLC now owns 23,651 shares of the auto parts company’s stock valued at $807,000 after acquiring an additional 2,030 shares during the period. Engineers Gate Manager LP boosted its stake in 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 acquiring an additional 8,380 shares during the last quarter. Finally, Corient Private Wealth LP boosted its stake in 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 acquiring an additional 3,565 shares during the last quarter. 97.13% of the stock is owned by institutional investors.

Gentherm Stock Performance

The stock has a market cap of $836.13 million, a price-to-earnings ratio of 31.44, a PEG ratio of 0.68 and a beta of 1.37. The stock’s fifty day moving average is $36.22 and its 200-day moving average is $35.11. The company has a quick ratio of 1.49, a current ratio of 2.06 and a debt-to-equity ratio of 0.38.

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.