AWH Capital L.P. Takes $22.30 Million Position in Garrett Motion Inc. $GTX

Key Points

• AWH Capital acquired a new $22.3 million stake in Garrett Motion, purchasing 615,450 shares and becoming the company’s largest holding; institutional investors collectively own 86.27% of GTX.
• Analysts remain broadly optimistic, with five Buy ratings and two Holds, an overall “Moderate Buy” consensus, and an average price target of $38.60 versus the reported share price of $26.66.
• Garrett Motion exceeded quarterly earnings expectations, reporting $0.53 EPS versus $0.46 estimated and 6.9% year-over-year revenue growth, while insiders sold $4.07 million of stock over the past three months.

AWH Capital L.P. purchased a new stake in Garrett Motion Inc. (NASDAQ:GTX - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 615,450 shares of the company's stock, valued at approximately $22,297,754. Garrett Motion comprises 0.0% of AWH Capital L.P.'s investment portfolio, making the stock its biggest holding. AWH Capital L.P. owned about 0.33% of Garrett Motion as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Convergence Investment Partners LLC grew its position in Garrett Motion by 0.9% during the first quarter. Convergence Investment Partners LLC now owns 45,952 shares of the company's stock worth $835,000 after buying an additional 423 shares in the last quarter. PNC Financial Services Group Inc. grew its position in Garrett Motion by 22.3% during the first quarter. PNC Financial Services Group Inc. now owns 3,450 shares of the company's stock worth $63,000 after buying an additional 629 shares in the last quarter. Persistent Asset Partners Ltd acquired a new stake in Garrett Motion during the second quarter worth about $27,000. Baron Wealth Management LLC grew its position in Garrett Motion by 3.3% during the first quarter. Baron Wealth Management LLC now owns 27,324 shares of the company's stock worth $496,000 after buying an additional 878 shares in the last quarter. Finally, Global Retirement Partners LLC grew its position in Garrett Motion by 156.7% during the fourth quarter. Global Retirement Partners LLC now owns 1,589 shares of the company's stock worth $28,000 after buying an additional 970 shares in the last quarter. 86.27% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

GTX has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Garrett Motion in a report on Friday, July 24th. Wall Street Zen downgraded Garrett Motion from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 18th. JPMorgan Chase & Co. lifted their price objective on Garrett Motion from $33.00 to $37.00 and gave the company an "overweight" rating in a report on Monday, August 10th. Royal Bank Of Canada set a $42.00 price objective on Garrett Motion in a report on Thursday, May 21st. Finally, BWS Financial reaffirmed a "buy" rating and set a $42.00 price objective on shares of Garrett Motion in a report on Thursday, July 30th. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $38.60.

Insider Activity at Garrett Motion

In related news, CFO Sean Deason sold 110,000 shares of the business's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $31.93, for a total value of $3,512,300.00. Following the completion of the transaction, the chief financial officer owned 261,909 shares in the company, valued at $8,362,754.37. The trade was a 29.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Mark Albert Rodrigues sold 10,516 shares of the business's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $33.82, for a total transaction of $355,651.12. Following the completion of the transaction, the senior vice president owned 83,178 shares of the company's stock, valued at $2,813,079.96. This trade represents a 11.22% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 126,656 shares of company stock worth $4,072,413 over the last three months. 1.10% of the stock is owned by company insiders.

Garrett Motion Price Performance

Shares of GTX opened at $26.66 on Friday. The company has a market capitalization of $4.97 billion, a P/E ratio of 14.65, a PEG ratio of 0.70 and a beta of 0.82. Garrett Motion Inc. has a one year low of $12.26 and a one year high of $36.25. The business's 50 day simple moving average is $30.79 and its 200-day simple moving average is $26.28.

Garrett Motion (NASDAQ:GTX - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $0.53 EPS for the quarter, topping the consensus estimate of $0.46 by $0.07. The business had revenue of $976.00 million for the quarter. Garrett Motion had a negative return on equity of 46.50% and a net margin of 9.51%.The firm's revenue was up 6.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.42 earnings per share. On average, sell-side analysts anticipate that Garrett Motion Inc. will post 1.91 EPS for the current fiscal year.

Garrett Motion Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a $0.08 dividend. This represents a $0.32 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, September 1st. Garrett Motion's payout ratio is presently 17.58%.

Garrett Motion Company Profile

Garrett Motion Inc is a technology leader specializing in the design, development and manufacture of turbocharging systems and related technologies for the global automotive industry. Its product portfolio includes conventional exhaust gas turbochargers, variable-geometry turbochargers, electric and e-boost turbochargers, as well as electronic actuators, sensors and thermal management systems. The company’s solutions are engineered to improve engine efficiency, reduce emissions and support automakers’ efforts to meet evolving regulatory standards for fuel economy and air quality.

Garrett Motion traces its roots to the founding of AiResearch by Cliff Garrett in 1936, a pioneer in aircraft and automotive turbocharging technologies.

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