THRM Should I Buy
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THRM is not a good buy right now. The stock just suffered a sharp selloff (-10.83% in the regular session) and the technical trend is still bearish (MACD worsening), while hedge funds are aggressively selling. Although the stock is extremely oversold (RSI_6 ~12.5) and could bounce short-term, the current setup does not favor an impatient buyer because the downtrend has not shown confirmation of reversal and near-term deal/earnings uncertainty can keep pressure on price.
Price/Trend: THRM is in a sharp downside move (large single-day drop) and remains below key pivot resistance (Pivot ~35.34). Momentum: MACD histogram at -0.49 and negatively expanding signals bearish momentum is strengthening, not stabilizing. RSI: RSI_6 at ~12.54 indicates extremely oversold conditions, which often precede a reflex bounce—but oversold alone is not a reversal signal. Moving Averages: Converging moving averages suggests the market is compressing after a move, but with MACD still deteriorating, the bias remains bearish until price reclaims key levels. Key Levels: Support sits near S1 ~32.76 and S2 ~31.17 (post-market ~31.96 is hovering close to lower support). Resistance levels are Pivot ~35.34 then R1 ~37.92. A high-quality long entry typically improves only after reclaiming/holding above the pivot zone. Pattern-based probabilistic outlook (provided): next day slightly negative, next week near flat, next month negative (-2.67%), consistent with a weak near-term trend.
near support (S2 ~31.
increases odds of a short-term relief rally.
Strong bearish momentum: MACD is below zero and worsening, indicating the trend down is still intact.
Institutional flow: Hedge funds are selling heavily (selling amount up 8556.93% QoQ), which often caps rebounds.
Deal risk/uncertainty: The ~$1B acquisition introduces integration and execution risk; the market may re-rate the stock around leverage, synergy credibility, and margins.
Profitability pressure: Latest reported quarter showed YoY declines in net income, EPS, and gross margin (despite revenue growth).
Latest quarter provided: 2025/Q3. Growth: Revenue increased to $386.87M (+4.13% YoY), showing modest top-line growth. Profitability: Net income fell to $14.95M (-6.36% YoY) and EPS decreased to $0.49 (-3.92% YoY). Margins: Gross margin declined to 24.59% (-3.72% YoY), indicating margin compression. Overall: Revenue is growing, but profitability and margins are trending down, which is a headwind until the company demonstrates operating leverage or improved mix/cost control.
No analyst rating/price target change data was provided, so a recent trend assessment cannot be confirmed. Wall Street-style pros/cons view based on available info: Pros—strategic acquisition could expand capabilities/scale; revenue is still growing. Cons—recent margin/EPS decline and a large deal can increase uncertainty; the market reaction (sharp drop) suggests skepticism or risk repricing. Influential trading check: No recent congress trading data available; insider trend noted as neutral with no significant activity recently.
