On August 25, a recent SEC filing unveiled that Barbara Runyon, SVP at Gentherm (NASDAQ:THRM) made an insider sell.
What Happened: Runyon's decision to sell 3,348 shares of Gentherm was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $116,577.
Tracking the Tuesday's morning session, Gentherm shares are trading at $36.76, showing a down of 0.0%.
All You Need to Know About Gentherm
Gentherm Inc is an automotive parts manufacturer. The business activities of the group function through the Automotive and Medical segments. The vast majority of the firm's revenue comes from the Automotive segment, which includes automotive climate comfort systems, automotive cable systems, battery performance solutions, and automotive electronics and software systems. The medical segment is comprised of the results from the patient temperature management business in the medical industry. Its geographical segments are the United States, China, South Korea, Germany, Japan, the Czech Republic, and other countries.
Gentherm's Financial Performance
Revenue Growth: Gentherm's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2025, the company experienced a revenue decline of approximately -0.16%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Profitability Metrics: Unlocking Value
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Gross Margin: The company excels with a remarkable gross margin of 23.93%, indicating superior cost efficiency and profitability compared to its industry peers.
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Earnings per Share (EPS): Gentherm's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.02.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.39.
Valuation Analysis:
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Price to Earnings (P/E) Ratio: Gentherm's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 36.4.
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Price to Sales (P/S) Ratio: With a P/S ratio of 0.78 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Gentherm's EV/EBITDA ratio, surpassing industry averages at 9.86, positions it with an above-average valuation in the market.
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
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Understanding the Significance of Insider Transactions
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Navigating the World of Insider Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Gentherm's Insider Trades.
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