Gentherm (NASDAQ:THRM) Sees Unusually-High Trading Volume on Insider Buying Activity

Gentherm Inc (NASDAQ:THRM) shares saw unusually-high trading volume on Tuesday after an insider bought additional shares in the company. Approximately 1,263,211 shares changed hands during mid-day trading, an increase of 122% from the average daily volume of 568,109 shares. The stock last traded at $31.2790 and had previously closed at $28.59.

Specifically, CEO William Presley bought 5,000 shares of Gentherm stock in a transaction dated Friday, October 23rd. The shares were acquired at an average cost of $26.00 per share, with a total value of $130,000.00. Following the completion of the transaction, the chief executive officer owned 183,314 shares in the company, valued at $4,766,164. The trade was a 2.80% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Paul Anthony Mascarenas purchased 20,000 shares of the business’s stock in a transaction dated Friday, October 23rd. The shares were purchased at an average price of $26.63 per share, for a total transaction of $532,600.00. Following the purchase, the director owned 22,677 shares of the company’s stock, valued at approximately $603,888.51. This trade represents a 747.10% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure.

Analysts Set New Price Targets

A number of research firms have recently weighed in on THRM. JPMorgan Chase & Co. lowered their price target on shares of Gentherm from $48.00 to $47.00 and set an “overweight” rating on the stock in a report on Friday. Wall Street Zen lowered shares of Gentherm from a “buy” rating to a “hold” rating in a research note on Saturday. Stifel Nicolaus decreased their target price on shares of Gentherm from $48.00 to $46.00 and set a “buy” rating for the company in a research report on Friday. CJS Securities assumed coverage on shares of Gentherm in a research report on Monday, September 14th. They set an “outperform” rating and a $50.00 target price for the company. Finally, Freedom Capital downgraded shares of Gentherm from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 24th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Gentherm currently has an average rating of “Hold” and a consensus price target of $44.17.

Trending Headlines about Gentherm

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: CEO William Presley bought 5,000 shares at an average price of $26.00, a $130,000 investment that increased his direct holdings by 2.8%. Insider Buying: Gentherm CEO Buys 5,000 Shares
• Positive Sentiment: Director Paul Anthony Mascarenas acquired 20,000 shares for approximately $532,600, increasing his direct position by more than sevenfold. The large open-market purchase provides an additional bullish insider signal. Gentherm Insider Bought Shares Worth $532,600
• Positive Sentiment: Gentherm has authorized a $400 million share-repurchase program, potentially covering up to 36.2% of outstanding shares. The company also recently paid a special $1.90-per-share dividend, supporting the investment case through shareholder returns.
• Positive Sentiment: Analyst coverage remains generally constructive: the consensus rating is “Hold” with a $44.17 price target, well above the recent trading range. Stifel and JPMorgan maintained favorable ratings despite trimming their targets.
• Neutral Sentiment: Reported short interest was zero shares as of October 26, offering little evidence that short covering is driving the move.
• Negative Sentiment: The latest quarter included adjusted EPS of $0.33, below the $0.64 consensus estimate, while revenue of $405.1 million narrowly exceeded expectations. EPS also fell from $0.73 a year earlier, and net margin was only 0.57%, highlighting profitability concerns.

Gentherm Price Performance

The firm has a market capitalization of $960.87 million, a PE ratio of 104.20, a P/E/G ratio of 0.66 and a beta of 1.37. The firm’s fifty day moving average price is $35.33 and its 200 day moving average price is $34.16. The company has a current ratio of 2.05, a quick ratio of 1.47 and a debt-to-equity ratio of 0.44.

Gentherm (NASDAQ:THRM) last posted its earnings results on Thursday, October 22nd. The auto parts company reported $0.33 EPS for the quarter, missing the consensus estimate of $0.64 by ($0.31). Gentherm had a return on equity of 10.30% and a net margin of 0.57%. The company had revenue of $405.10 million for the quarter, compared to analyst estimates of $404.16 million. During the same period last year, the business earned $0.73 earnings per share. The firm’s revenue was up 4.7% on a year-over-year basis. As a group, equities analysts forecast that Gentherm Inc will post 2.89 earnings per share for the current year.

Gentherm Announces Dividend

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

Gentherm announced that its Board of Directors has approved a share buyback plan on Thursday, July 23rd that allows the company to repurchase $400 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 typically a sign that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in Gentherm in the 2nd quarter valued at $165,005,000. Dimensional Fund Advisors LP raised 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 worth $40,960,000 after acquiring an additional 96,280 shares during the period. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Gentherm during the 2nd quarter worth $27,822,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Gentherm by 1.8% during the 1st 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 period. Finally, Bank of America Corp DE acquired a new position in shares of Gentherm during the 2nd quarter valued at about $9,986,000. 97.13% of the stock is owned by hedge funds and other institutional investors.

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.