Front Street Capital Management Inc. Makes New $1.31 Million Investment in Gentherm Inc $THRM

Front Street Capital Management Inc. purchased a new stake in shares of Gentherm Inc (NASDAQ:THRM) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 38,440 shares of the auto parts company’s stock, valued at approximately $1,311,000. Front Street Capital Management Inc. owned about 0.13% of Gentherm as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in THRM. BlackRock Inc. purchased a new position in shares of Gentherm during the second quarter valued at approximately $165,005,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in Gentherm in the second quarter worth approximately $27,822,000. Arrowstreet Capital Limited Partnership grew its position in Gentherm by 385.3% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 543,200 shares of the auto parts company’s stock worth $18,501,000 after purchasing an additional 431,271 shares during the period. Royce & Associates LP purchased a new stake in Gentherm during the 4th quarter valued at $12,080,000. Finally, Bank of New York Mellon Corp purchased a new stake in Gentherm during the 2nd quarter valued at $7,180,000. 97.13% of the stock is currently owned by institutional investors.

Gentherm Stock Performance

NASDAQ:THRM opened at $39.45 on Tuesday. The company has a current ratio of 2.06, a quick ratio of 1.49 and a debt-to-equity ratio of 0.38. Gentherm Inc has a 12-month low of $27.00 and a 12-month high of $48.35. The stock has a 50-day moving average price of $38.42 and a 200 day moving average price of $33.68. The stock has a market capitalization of $1.21 billion, a P/E ratio of 45.34 and a beta of 1.35.

Gentherm (NASDAQ:THRM) last posted its quarterly earnings results on Thursday, July 23rd. The auto parts company reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.19. The business had revenue of $404.94 million during the quarter, compared to the consensus estimate of $382.90 million. Gentherm had a return on equity of 12.06% and a net margin of 1.68%.The firm’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.54 EPS. Equities research analysts forecast that Gentherm Inc will post 2.92 EPS for the current fiscal year.

Gentherm announced that its Board of Directors has initiated a stock buyback program on Thursday, July 23rd that permits the company to repurchase $400.00 million in outstanding shares. This repurchase authorization permits the auto parts company to repurchase up to 36.2% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Roth Capital restated a “buy” rating and issued a $50.00 price target on shares of Gentherm in a research note on Wednesday, July 29th. Stifel Nicolaus increased their target price on Gentherm from $44.00 to $59.00 and gave the company a “buy” rating in a report on Friday, July 24th. Zacks Research raised Gentherm from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 27th. Freedom Capital downgraded Gentherm from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 24th. Finally, Weiss Ratings raised shares of Gentherm from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, Gentherm presently has a consensus rating of “Moderate Buy” and an average price target of $45.80.

Insiders Place Their Bets

In related news, SVP Wayne S. Kauffman III sold 4,700 shares of the firm’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $43.21, for a total transaction of $203,087.00. Following the completion of 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 SEC, which is accessible through this link. Insiders own 2.10% of the company’s stock.

Gentherm Profile

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.