Gentherm (NASDAQ:THRM) Trading Up 12.4% on Earnings Beat

Gentherm Inc (NASDAQ:THRM)’s share price rose 12.4% on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $41.11 and last traded at $40.5290. Approximately 99,584 shares were traded during mid-day trading, a decline of 66% from the average session volume of 289,277 shares. The stock had previously closed at $36.05.

The auto parts company reported $0.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.19. The business had revenue of $404.94 million during the quarter, compared to analyst estimates of $382.90 million. Gentherm had a return on equity of 11.25% and a net margin of 1.47%.Gentherm’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.54 EPS.

Gentherm declared that its board has authorized a share repurchase program on Thursday, July 23rd that allows the company to repurchase $400.00 million in shares. This repurchase authorization allows the auto parts company to reacquire up to 36.2% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Gentherm News Summary

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Gentherm beat Q2 earnings and revenue expectations, reporting $0.75 per share versus the $0.56 consensus and revenue of $404.94 million versus $382.90 million expected. The company also said revenue rose 11% year over year. Gentherm (THRM) Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised full-year 2026 guidance and highlighted record quarterly revenue of $416 million, signaling momentum heading into the second half of the year. Gentherm Reports 2026 Second Quarter Results and Announces a New Increased Stock Repurchase Authorization
• Positive Sentiment: The board approved a new stock repurchase authorization of up to $400 million, which can support earnings per share and signals confidence in the company’s cash generation. Gentherm Reports 2026 Second Quarter Results and Announces a New Increased Stock Repurchase Authorization
• Positive Sentiment: Gentherm also announced the acquisition of Innovative Medical Equipment, expanding its medical product portfolio and customer channels, which could add to longer-term growth. Gentherm Acquires Innovative Medical Equipment, LLC, Strengthening Medical Product Portfolio and Customer Channels

Analysts Set New Price Targets

A number of research firms recently commented on THRM. Robert W. Baird boosted their price target on Gentherm from $33.00 to $34.00 and gave the stock a “neutral” rating in a report on Friday, April 24th. Stifel Nicolaus increased their price objective on shares of Gentherm from $38.00 to $44.00 and gave the company a “buy” rating in a report on Monday. JPMorgan Chase & Co. lifted their price objective on shares of Gentherm from $37.00 to $38.00 and gave the company a “neutral” rating in a research report on Thursday, May 14th. Wall Street Zen raised shares of Gentherm from a “buy” rating to a “strong-buy” rating in a report on Saturday, April 25th. Finally, Weiss Ratings raised shares of Gentherm from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, May 8th. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $38.60.

Hedge Funds Weigh In On Gentherm

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Farther Finance Advisors LLC increased its stake in Gentherm by 160.3% in the 4th quarter. Farther Finance Advisors LLC now owns 812 shares of the auto parts company’s stock worth $30,000 after acquiring an additional 500 shares during the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of Gentherm during the 4th quarter worth approximately $35,000. Eagle Bay Advisors LLC bought a new position in shares of Gentherm during the 4th quarter valued at approximately $50,000. Palladiem LLC bought a new position in shares of Gentherm during the 4th quarter valued at approximately $52,000. Finally, Nisa Investment Advisors LLC grew its holdings in shares of Gentherm by 21.5% in the fourth quarter. Nisa Investment Advisors LLC now owns 1,994 shares of the auto parts company’s stock valued at $73,000 after purchasing an additional 353 shares in the last quarter. 97.13% of the stock is owned by institutional investors.

Gentherm Stock Performance

The business’s fifty day moving average is $35.19 and its two-hundred day moving average is $32.88. The stock has a market capitalization of $1.40 billion, a PE ratio of 60.81 and a beta of 1.38. The company has a quick ratio of 1.36, a current ratio of 1.97 and a debt-to-equity ratio of 0.31.

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.