Aristeia Capital L.L.C. Makes New Investment in Garrett Motion Inc. $GTX

Key Points

• Aristeia Capital opened a new position in Garrett Motion, buying 52,344 shares valued at about $912,000 in the fourth quarter.
• Garrett Motion reported stronger-than-expected quarterly results, with EPS of $0.49 versus $0.43 expected and revenue of $985 million, up 12.2% year over year.
• The company also paid a quarterly dividend of $0.08 per share, while several insiders sold stock and analysts currently rate GTX a Moderate Buy with an average target price of $31.83.

Aristeia Capital L.L.C. bought a new position in Garrett Motion Inc. (NASDAQ:GTX - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 52,344 shares of the company's stock, valued at approximately $912,000.

Several other institutional investors and hedge funds have also recently bought and sold shares of GTX. Jones Financial Companies Lllp bought a new position in Garrett Motion in the 1st quarter worth about $42,000. Jane Street Group LLC grew its position in Garrett Motion by 641.7% in the 1st quarter. Jane Street Group LLC now owns 90,919 shares of the company's stock worth $761,000 after purchasing an additional 78,661 shares during the last quarter. Cetera Investment Advisers bought a new position in Garrett Motion in the 2nd quarter worth about $121,000. Legal & General Group Plc boosted its holdings in shares of Garrett Motion by 30.4% in the second quarter. Legal & General Group Plc now owns 97,486 shares of the company's stock valued at $1,024,000 after acquiring an additional 22,727 shares in the last quarter. Finally, Prudential Financial Inc. acquired a new position in shares of Garrett Motion during the second quarter valued at approximately $225,000. Institutional investors own 86.27% of the company's stock.

Garrett Motion Stock Performance

Shares of NASDAQ:GTX opened at $33.76 on Thursday. The stock has a market capitalization of $6.32 billion, a price-to-earnings ratio of 19.74, a PEG ratio of 1.09 and a beta of 0.79. Garrett Motion Inc. has a 1-year low of $9.57 and a 1-year high of $35.06. The company has a 50 day moving average price of $27.49 and a 200 day moving average price of $21.50.

Garrett Motion (NASDAQ:GTX - Get Free Report) last issued its earnings results on Friday, May 1st. The company reported $0.49 earnings per share for the quarter, topping analysts' consensus estimates of $0.43 by $0.06. The firm had revenue of $985.00 million during the quarter, compared to analysts' expectations of $917.23 million. Garrett Motion had a net margin of 9.29% and a negative return on equity of 42.77%. The firm's revenue was up 12.2% compared to the same quarter last year. On average, sell-side analysts expect that Garrett Motion Inc. will post 1.83 EPS for the current fiscal year.

Garrett Motion Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were given a $0.08 dividend. This represents a $0.32 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Monday, June 1st. Garrett Motion's dividend payout ratio is 18.71%.

Insider Activity

In related news, Director Daniel A. Ninivaggi sold 17,178 shares of the company's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $31.22, for a total value of $536,297.16. Following the completion of the sale, the director owned 124,885 shares in the company, valued at approximately $3,898,909.70. This represents a 12.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Sean Deason sold 110,000 shares of the company'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 transaction of $3,512,300.00. Following the completion of the sale, the chief financial officer owned 261,909 shares of the company's stock, valued at approximately $8,362,754.37. This trade represents a 29.58% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 207,694 shares of company stock worth $6,714,248 in the last quarter. Insiders own 1.10% of the company's stock.

Analysts Set New Price Targets

GTX has been the topic of a number of research analyst reports. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $24.00 price objective on shares of Garrett Motion in a research note on Friday, May 1st. Royal Bank Of Canada set a $42.00 price objective on shares of Garrett Motion in a research note on Thursday, May 21st. BWS Financial raised their price objective on shares of Garrett Motion from $32.00 to $42.00 and gave the company a "buy" rating in a research note on Thursday, May 21st. JPMorgan Chase & Co. raised their price objective on shares of Garrett Motion from $30.00 to $33.00 and gave the company an "overweight" rating in a research note on Thursday, May 14th. Finally, Zacks Research upgraded shares of Garrett Motion from a "hold" rating to a "strong-buy" rating in a research note on Friday, May 22nd. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, Garrett Motion has an average rating of "Moderate Buy" and an average target price of $31.83.

About Garrett Motion

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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