Gentherm (NASDAQ:THRM) Stock Jumps 5.1% – Time to Buy?

Gentherm Inc (NASDAQ:THRM)’s stock price was up 5.1% during trading on Friday. The stock traded as high as $27.09 and last traded at $27.49. 282,444 shares changed hands during mid-day trading, a decline of 47% from the average daily volume of 537,967 shares. The stock had previously closed at $26.15.

Trending Headlines about Gentherm

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Gentherm raised its 2026 outlook to include Modine, forecasting product revenue of approximately $1.825 billion to $1.925 billion, adjusted EBITDA of $210 million to $230 million, and adjusted free cash flow of $100 million to $120 million. The revenue range is well above the roughly $1.6 billion consensus cited in company updates. Gentherm Reports 2026 Third Quarter Results
• Positive Sentiment: The Modine transaction, completed October 1, significantly expands Gentherm’s thermal-management portfolio and is expected to provide additional revenue and EBITDA growth. Management also highlighted $555 million in new automotive awards and 8.8% growth in Automotive Climate and Comfort Solutions revenue.
• Positive Sentiment: Capital returns are supporting the stock: Gentherm paid a $2.07-per-share special dividend and repurchased $60 million of common stock in October, with approximately $340 million remaining under its authorization. Gentherm Reports Q3 2026 Results
• Positive Sentiment: Stifel Nicolaus maintained a Buy rating and reduced its price target modestly to $46 from $48, implying substantial potential upside from recent trading levels. Stifel Nicolaus Gentherm Rating
• Neutral Sentiment: Third-quarter revenue rose 4.7% year over year to $405.1 million, slightly exceeding analyst expectations, while medical revenue increased 14.6%. However, much of the forward growth case depends on successfully integrating Modine.
• Negative Sentiment: Adjusted EPS was $0.33, missing the $0.64 consensus estimate and falling from $0.73 a year earlier. Gentherm also reported a $2.6 million net loss versus $14.9 million of net income last year. Gentherm Q3 Earnings Report
• Negative Sentiment: Gross margin declined to 23.3% from 24.6%, adjusted EBITDA fell to $45 million from $49 million, and operating cash flow dropped to $36 million from $87.8 million, reflecting material-cost, inflationary, and integration pressures.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on THRM. Wall Street Zen lowered shares of Gentherm from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 1st. Zacks Research downgraded shares of Gentherm from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Stifel Nicolaus lowered their target price on Gentherm from $48.00 to $46.00 and set a “buy” rating for the company in a report on Friday. CJS Securities initiated coverage on Gentherm in a research report on Monday, September 14th. They set an “outperform” rating and a $50.00 target price on the stock. Finally, Weiss Ratings upgraded Gentherm from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 29th. Four investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $44.33.

Gentherm Stock Performance

The company has a current ratio of 2.06, a quick ratio of 1.49 and a debt-to-equity ratio of 0.38. The stock has a market cap of $867.48 million, a PE ratio of 32.43, a P/E/G ratio of 0.66 and a beta of 1.37. The business’s 50-day moving average price is $35.88 and its 200-day moving average price is $35.10.

Gentherm (NASDAQ:THRM) last announced its earnings results on Thursday, October 22nd. The auto parts company reported $0.33 earnings per share for the quarter, missing the consensus estimate of $0.64 by ($0.31). Gentherm had a net margin of 1.68% and a return on equity of 12.06%. The firm had revenue of $405.10 million during the quarter, compared to analyst estimates of $404.16 million. During the same quarter last year, the business earned $0.73 earnings per share. Gentherm’s revenue was up 4.7% on a year-over-year basis. As a group, equities research analysts expect that Gentherm Inc will post 2.89 earnings per share for the current fiscal year.

Gentherm Announces Dividend

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

Gentherm announced that its board has authorized a share buyback program on Thursday, July 23rd that allows the company to repurchase $400.00 million in outstanding shares. This repurchase authorization allows the auto parts company to repurchase up to 36.2% of its stock through open market purchases. Share repurchase programs are usually a sign that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In related news, SVP Wayne Kauffman, III sold 4,700 shares of the company’s stock in a transaction dated 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 directly owned 27,421 shares of the company’s stock, valued at $1,184,861.41. This represents a 14.63% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 2.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Gentherm

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

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 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.