Gentherm (NASDAQ:THRM) Rating Lowered to Hold at Wall Street Zen

Gentherm (NASDAQ:THRM) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Saturday, Wall Street Zen reports.

Other analysts have also recently issued reports about the company. Zacks Research cut Gentherm from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. JPMorgan Chase & Co. decreased their target price on Gentherm from $48.00 to $47.00 and set an “overweight” rating on the stock in a report on Friday. Roth Capital reissued a “buy” rating and set a $50.00 target price on shares of Gentherm in a report on Wednesday, July 29th. Weiss Ratings upgraded Gentherm from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 29th. Finally, CJS Securities began coverage on Gentherm in a report on Monday, September 14th. They set an “outperform” rating and a $50.00 price target for the company. Four analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $44.17.

Gentherm Stock Performance

Shares of Gentherm stock opened at $28.60 on Friday. The stock has a market cap of $879.16 million, a P/E ratio of 95.33, a P/E/G ratio of 0.66 and a beta of 1.37. Gentherm has a 12-month low of $25.31 and a 12-month high of $48.35. The business’s 50 day moving average is $35.57 and its 200-day moving average is $35.10. The company has a quick ratio of 1.47, a current ratio of 2.05 and a debt-to-equity ratio of 0.44.

Gentherm (NASDAQ:THRM) last announced its quarterly earnings results 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 firm had revenue of $405.10 million during the quarter, compared to analyst estimates of $404.16 million. Gentherm had a net margin of 0.57% and a return on equity of 10.30%. The business’s revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.73 EPS. Equities research analysts predict that Gentherm will post 2.89 earnings per share for the current fiscal year.

Gentherm declared that its board has approved a stock buyback plan on Thursday, July 23rd that allows the company to buy back $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. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity at Gentherm

In related news, SVP Wayne Kauffman, III sold 4,700 shares of the firm’s stock in a transaction dated Wednesday, July 29th. The shares were 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 approximately $1,184,861.41. This trade represents a 14.63% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.10% of the company’s stock.

Institutional Trading of Gentherm

A number of institutional investors have recently bought and sold shares of THRM. Palouse Capital Management Inc. lifted its position in shares of Gentherm by 14.2% during the 2nd quarter. Palouse Capital Management Inc. now owns 4,822 shares of the auto parts company’s stock worth $164,000 after buying an additional 600 shares in the last quarter. Leonteq Securities AG grew its holdings in shares of Gentherm by 13.3% in the first quarter. Leonteq Securities AG now owns 5,289 shares of the auto parts company’s stock valued at $147,000 after acquiring an additional 621 shares in the last quarter. Meeder Asset Management Inc. purchased a new stake in shares of Gentherm during the second quarter valued at approximately $30,000. Carnegie Investment Counsel increased its position in shares of Gentherm by 14.9% during the first quarter. Carnegie Investment Counsel now owns 7,355 shares of the auto parts company’s stock valued at $204,000 after acquiring an additional 952 shares during the last quarter. Finally, Allworth Financial LP bought a new stake in Gentherm during the second quarter worth $37,000. Institutional investors own 97.13% of the company’s stock.

Key Headlines Impacting Gentherm

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Modine integration boosts 2026 outlook: Gentherm raised full-year product-revenue guidance to $1.825 billion–$1.925 billion, up from $1.55 billion–$1.65 billion previously. Adjusted EBITDA guidance increased to $210 million–$230 million, while adjusted free cash flow is expected at $100 million–$120 million. The guidance reflects the addition of Modine Performance Technologies beginning in the fourth quarter. Gentherm Updates Outlook After Modine Performance Integration
• Positive Sentiment: Strong business momentum and capital returns: Third-quarter automotive climate and comfort revenue rose 8.8% year over year, medical revenue increased 14.6%, and Gentherm secured $555 million in new automotive awards. The company also repurchased $60 million of stock in October, with approximately $340 million remaining under its authorization, and paid a $2.07-per-share special dividend. Gentherm Reports 2026 Third Quarter Results
• Positive Sentiment: Analysts remain bullish despite target reductions: JPMorgan lowered its target from $48 to $47 while retaining an “overweight” rating, and Stifel reduced its target from $48 to $46 while maintaining a “buy” rating. Both targets imply substantial upside from the referenced share price. JPMorgan Analyst Rating
• Neutral Sentiment: Quarterly revenue exceeded expectations: Third-quarter revenue increased 4.7% to $405.1 million, slightly above the $404.2 million consensus estimate. The company described results as in line with expectations following the Modine transaction. Gentherm Q3 2026 Earnings Call Transcript
• Negative Sentiment: Profitability materially missed estimates: Adjusted EPS was $0.33, below the $0.64–$0.66 consensus, and declined from $0.73 a year earlier. Gentherm reported a GAAP loss of $2.6 million versus prior-year net income of $14.9 million. Gross margin fell to 23.3% from 24.6%, while operating cash flow dropped to $36 million from $87.8 million, reflecting material-cost, inflation and integration pressures. Gentherm Q3 Earnings Miss

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.