Gentherm (NASDAQ:THRM) Stock Price Up 6.5% – Still a Buy?

Gentherm Inc (NASDAQ:THRM)’s stock price shot up 6.5% during mid-day trading on Friday . The company traded as high as $33.33 and last traded at $33.36. 219,882 shares changed hands during mid-day trading, a decline of 17% from the average session volume of 265,834 shares. The stock had previously closed at $31.31.

Key Gentherm News

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Reported record 2025 product revenue of ~$1.5B, increased operating cash flow, reduced net leverage to ~0.2x and secured $2.2B of automotive new business — management also issued 2026 product‑revenue guidance of $1.5B–$1.6B and a preliminary ~ $1.7B outlook for 2027, which supports growth expectations. Press Release
• Positive Sentiment: Some market commentators and outlets highlight the revenue beat and upbeat guidance as a catalyst for upside. Investing.com
• Positive Sentiment: Freedom Capital Markets initiated coverage with a Buy rating (adds institutional endorsement and may help demand). Coverage Note (MSN summary)
• Positive Sentiment: Analyst/commentary pieces argue the company’s transformation and new product momentum support upgrades from some investors. Seeking Alpha
• Neutral Sentiment: Earnings call transcript and the investor slide deck are available for deeper detail on assumptions, FX exposure and margin drivers — useful for assessing the credibility of guidance and FY2026 assumptions. Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Short‑interest notes in the feed show inconsistent/zero values (likely data error) — no clear short pressure signal from these entries. (No reliable link provided)
• Negative Sentiment: GAAP profitability weakened: Q4 GAAP diluted EPS of $0.10 (FY GAAP diluted $0.59) and net income declined year‑over‑year — investors concerned about margin compression from higher material costs and footprint realignment. Press Release
• Negative Sentiment: Q4 adjusted EPS dynamic: the company reported adjusted EPS improvements but missed street GAAP/quarterly EPS consensus ($0.49 vs. estimate ~$0.64), which is a short‑term negative surprise for some investors. Zacks

Analysts Set New Price Targets

THRM has been the subject of a number of analyst reports. Robert W. Baird decreased their price objective on shares of Gentherm from $42.00 to $36.00 and set a “neutral” rating for the company in a research report on Friday. Roth Mkm reissued a “buy” rating and issued a $44.00 price target on shares of Gentherm in a report on Friday, October 24th. Weiss Ratings downgraded shares of Gentherm from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, February 9th. Finally, Wall Street Zen raised Gentherm from a “buy” rating to a “strong-buy” rating in a research report on Saturday, October 25th. One equities research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $41.00.

Gentherm Price Performance

The firm has a market capitalization of $1.04 billion, a P/E ratio of 34.11 and a beta of 1.34. The company has a quick ratio of 1.33, a current ratio of 1.96 and a debt-to-equity ratio of 0.26. The business’s 50 day moving average is $35.64 and its 200-day moving average is $35.55.

Gentherm (NASDAQ:THRM) last issued its quarterly earnings results on Thursday, February 19th. The auto parts company reported $0.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.64 by ($0.15). Gentherm had a net margin of 2.08% and a return on equity of 9.55%. The business had revenue of $382.79 million during the quarter, compared to the consensus estimate of $371.91 million. During the same quarter in the previous year, the business posted $0.29 EPS. The company’s revenue for the quarter was up 8.5% on a year-over-year basis. As a group, sell-side analysts predict that Gentherm Inc will post 3.1 EPS for the current fiscal year.

Hedge Funds Weigh In On Gentherm

A number of institutional investors have recently added to or reduced their stakes in the stock. Invesco Ltd. boosted its position in Gentherm by 20.5% in the fourth quarter. Invesco Ltd. now owns 432,287 shares of the auto parts company’s stock valued at $15,722,000 after buying an additional 73,466 shares in the last quarter. State of Tennessee Department of Treasury lifted its stake in shares of Gentherm by 168.2% in the 4th quarter. State of Tennessee Department of Treasury now owns 31,933 shares of the auto parts company’s stock valued at $1,161,000 after acquiring an additional 20,027 shares during the last quarter. Millennium Management LLC boosted its holdings in shares of Gentherm by 121.2% during the 4th quarter. Millennium Management LLC now owns 30,964 shares of the auto parts company’s stock valued at $1,126,000 after acquiring an additional 16,965 shares in the last quarter. Man Group plc grew its position in Gentherm by 153.4% during the 4th quarter. Man Group plc now owns 92,881 shares of the auto parts company’s stock worth $3,378,000 after acquiring an additional 56,234 shares during the last quarter. Finally, Trexquant Investment LP increased its holdings in Gentherm by 158.9% in the 4th quarter. Trexquant Investment LP now owns 67,175 shares of the auto parts company’s stock worth $2,443,000 after purchasing an additional 41,231 shares in the last quarter. 97.13% of the stock is currently owned by institutional investors and hedge funds.

About Gentherm

Gentherm Incorporated (NASDAQ: THRM) is a global developer and supplier of advanced thermal management technologies for automotive, specialty vehicle, medical, consumer and industrial markets. The company’s core focus lies in delivering integrated heating and cooling systems designed to enhance energy efficiency, comfort and safety across a wide range of applications. Gentherm’s product portfolio includes seat thermal systems, heated and ventilated seating surfaces, steering wheel heaters, battery thermal management solutions, and climate systems for electric vehicles.

In the automotive sector, Gentherm partners with leading original equipment manufacturers to engineer and manufacture high-performance thermal solutions that meet stringent industry demands for reduced weight, lower energy consumption and improved passenger comfort.