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

Gentherm Inc (NASDAQ:THRM)’s share price 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.

Analysts Set New Price Targets

Several analysts have recently weighed in on THRM shares. Wall Street Zen downgraded shares of Gentherm from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 1st. Freedom Capital downgraded shares of Gentherm from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 24th. CJS Securities started coverage on shares of Gentherm in a research note on Monday, September 14th. They set an “outperform” rating and a $50.00 price target on the stock. Stifel Nicolaus boosted their price target on shares of Gentherm from $44.00 to $59.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Finally, Zacks Research downgraded shares of Gentherm from a “strong-buy” rating to a “hold” rating in a research note on Monday. 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, the company presently has an average rating of “Hold” and an average price target of $46.50.

Gentherm Stock Performance

The company has a quick ratio of 1.49, a current ratio of 2.06 and a debt-to-equity ratio of 0.38. The firm has a 50-day simple moving average of $39.47 and a 200 day simple moving average of $34.91. 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.

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

Gentherm Dividend Announcement

The firm also recently disclosed a special dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Monday, September 28th will be paid a $1.90 dividend.

Gentherm announced that its Board of Directors has approved a share repurchase plan on Thursday, July 23rd that allows the company to repurchase $400.00 million in shares. This repurchase authorization allows the auto parts company to repurchase up to 36.2% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board believes its shares are undervalued.

Insider Activity

In related news, SVP Wayne Kauffman, III sold 4,700 shares of the business’s stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $43.21, for a total value of $203,087.00. Following the transaction, the senior vice president owned 27,421 shares in the company, valued at $1,184,861.41. The trade was a 14.63% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 2.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of THRM. BlackRock Inc. acquired a new position in shares of Gentherm in the second quarter valued at approximately $165,005,000. Dimensional Fund Advisors LP lifted its holdings in shares of Gentherm by 7.0% during the first quarter. Dimensional Fund Advisors LP now owns 1,474,493 shares of the auto parts company’s stock worth $40,960,000 after purchasing an additional 96,280 shares during the period. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in Gentherm in the 2nd quarter valued at $27,822,000. Arrowstreet Capital Limited Partnership grew its position in Gentherm by 1.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 554,641 shares of the auto parts company’s stock valued at $15,408,000 after buying an additional 10,058 shares during the last quarter. Finally, Bank of America Corp DE acquired a new position in Gentherm in the 2nd quarter valued at $9,986,000. 97.13% of the stock is currently owned by hedge funds and other institutional investors.

Gentherm Company Profile

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.