Why did Harvey Partners increase its stake in Gentherm?

Harvey Partners likely sees a potential turnaround for Gentherm, citing record revenue and strong operating cash flow despite the stock's recent performance.

What does Gentherm do?

Gentherm provides thermal management technologies, including climate comfort systems for vehicles and patient temperature management for medical use.

How has Gentherm's stock performed recently?

Gentherm's stock was down 13% over the past year as of the article's reporting date, underperforming the S&P 500.

Home / Business and Economy / Harvey Partners Buys $18.1M More Gentherm Stock

Harvey Partners Buys $18.1M More Gentherm Stock

8 Dec

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Summary

Harvey Partners increased its Gentherm stake by 431,072 shares.
The investment adds $18.1 million to the firm's existing Gentherm holdings.
Gentherm recently posted record quarterly revenue and strong cash flow.

Harvey Partners Buys $18.1M More Gentherm Stock

New York-based Harvey Partners has substantially expanded its investment in Gentherm, purchasing an additional 431,072 shares for approximately $18.1 million as of September 30. This strategic acquisition raises the firm's total stake in Gentherm to about 1 million shares, now valued at $34.9 million and constituting 3.1% of Harvey Partners' reportable U.S. equity assets under management.

This increased confidence from Harvey Partners comes despite Gentherm's stock price declining 13% over the past year, underperforming the broader S&P 500. Gentherm, a provider of thermal management technologies for automotive and medical applications, recently reported record quarterly revenue of $386.9 million, driven by strong performance in its automotive climate and comfort solutions division.

The company also demonstrated financial strength with $87.8 million in year-to-date operating cash flow and secured substantial new automotive awards, totaling $745 million in the third quarter. This performance suggests a potential turnaround, with Harvey Partners seemingly betting on fundamentals improving despite current market sentiment.