Gentherm (NASDAQ:THRM) Stock: Insider William Presley Acquires 5,000 Shares

Gentherm Inc (NASDAQ:THRM) CEO William Presley purchased 5,000 shares of the business’s stock in a transaction that occurred on Friday, October 23rd. The stock was acquired at an average cost of $26.00 per share, with a total value of $130,000.00. Following the completion of the acquisition, the chief executive officer directly owned 183,314 shares of the company’s stock, valued at $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.

Gentherm Trading Up 11.3%

Shares of NASDAQ THRM opened at $31.82 on Wednesday. The firm’s 50-day simple moving average is $35.10 and its 200 day simple moving average is $34.13. Gentherm Inc has a 12-month low of $25.31 and a 12-month high of $48.35.

Gentherm (NASDAQ:THRM) last issued its quarterly earnings data on Thursday, October 22nd. The auto parts company reported $0.33 EPS for the quarter, missing analysts’ consensus estimates of $0.64 by ($0.31). The business had revenue of $405.10 million for the quarter, compared to analysts’ expectations of $404.16 million. The firm’s revenue was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.73 earnings per share. Research analysts expect that Gentherm Inc will post 2.70 EPS for the current fiscal year.

Gentherm declared that its Board of Directors has initiated a share buyback program on Thursday, July 23rd that authorizes the company to buy back $400 million in shares. This buyback authorization authorizes the auto parts company to repurchase up to 36.2% of its shares through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its stock is undervalued.

Gentherm Announces Dividend

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

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Freedom Capital lowered shares of Gentherm from a “strong-buy” rating to a “hold” rating in a report on Friday, July 24th. JPMorgan Chase & Co. reduced their price objective on Gentherm from $48.00 to $47.00 and set an “overweight” rating on the stock in a report on Friday, October 23rd. Weiss Ratings downgraded Gentherm from a “hold (c)” rating to a “sell (d+)” rating in a research report on Monday. Wall Street Zen lowered Gentherm from a “buy” rating to a “hold” rating in a research note on Saturday. Finally, CJS Securities started coverage on Gentherm in a research note on Monday, September 14th. They set an “outperform” rating and a $50.00 price target on the stock. Five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Gentherm currently has a consensus rating of “Hold” and a consensus price target of $43.57.

Institutional Investors Weigh In On Gentherm

Several institutional investors have recently modified their holdings of the business. BlackRock Inc. acquired a new position in Gentherm in the second quarter valued at approximately $165,005,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in Gentherm in the second quarter valued at approximately $27,822,000. Bank of America Corp DE acquired a new stake in Gentherm during the 2nd quarter worth $9,986,000. Bank of New York Mellon Corp acquired a new stake in Gentherm during the 2nd quarter worth $7,180,000. Finally, Bastion Asset Management Inc. acquired a new stake in Gentherm during the 1st quarter worth $6,213,000. Institutional investors and hedge funds own 97.13% of the company’s stock.

Gentherm News Summary

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Freedom Broker upgraded Gentherm from “hold” to “buy” and set a $40 price target, implying approximately 25.7% upside from the reported $31.82 level. The upgrade provides a fresh catalyst after the stock’s recent weakness. Freedom Broker analyst rating
• Positive Sentiment: Company insiders bought a combined 25,000 shares. CEO William Presley purchased 5,000 shares for $130,000, increasing his position by 2.8%, while Director Paul Anthony Mascarenas acquired 20,000 shares valued at $532,600. Insider buying can signal that management and directors view the recent share-price decline as an attractive entry point. Gentherm insider buying report
• Neutral Sentiment: Recent institutional activity was generally supportive, with BlackRock, Bank of America, Deutsche Bank and Walleye Capital establishing positions and Renaissance Technologies increasing its stake. Institutional ownership is reported at approximately 97%, though these purchases occurred in earlier quarters and may not represent immediate trading activity.
• Negative Sentiment: Gentherm’s latest quarterly results remain a concern: EPS was $0.33 versus the $0.64 consensus estimate, while revenue of $405.1 million was only modestly above expectations. Profitability also weakened sharply from the prior-year period, with net margin at 0.57% and EPS down from $0.73. Analysts currently expect $2.89 in full-year EPS, and the stock’s valuation remains demanding at more than 100 times earnings.

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.