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

Gentherm Inc (NASDAQ:THRM) hit a new 52-week low during mid-day trading 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 traded. The stock had previously closed at $28.44.

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 return on equity of 12.06% and a net margin of 1.68%. The company had revenue of $405.10 million during the quarter, compared to analysts’ expectations of $404.16 million. During the same period in the previous year, the company earned $0.73 EPS. Gentherm’s quarterly revenue was up 4.7% on a year-over-year basis.

Gentherm Announces Dividend

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

Gentherm declared that its Board of Directors has initiated a stock buyback program on Thursday, July 23rd that permits the company to buy back $400.00 million in shares. This buyback authorization permits the auto parts company to repurchase up to 36.2% of its shares through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of research analysts recently commented on THRM shares. CJS Securities initiated coverage on Gentherm in a research note on Monday, September 14th. They set an “outperform” rating and a $50.00 price objective for the company. Roth Capital reaffirmed a “buy” rating and issued a $50.00 target price on shares of Gentherm in a research report on Wednesday, July 29th. Wall Street Zen cut Gentherm from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 1st. Stifel Nicolaus set a $48.00 price target on shares of Gentherm in a report on Monday. Finally, Weiss Ratings raised shares of Gentherm from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 29th. Four equities research 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 has a consensus rating of “Hold” and an average price target of $44.67.

Insider Activity

In related news, SVP Wayne Kauffman, III sold 4,700 shares of Gentherm stock in a transaction on 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 directly 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 through this link. Corporate insiders own 2.10% of the company’s stock.

Institutional Trading of Gentherm

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

Gentherm Trading Down 4.4%

The business has a 50-day moving average of $36.22 and a 200-day moving average of $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. 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.

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.