Bank of America Corp DE Buys New Shares in Garrett Motion Inc. $GTX

Key Points

• Bank of America acquired 1.26 million Garrett Motion shares worth approximately $45.5 million during the second quarter, giving it a 0.67% stake. Institutional investors collectively own 86.27% of the company.
• Analysts remain broadly positive, with Garrett Motion holding a consensus “Buy” rating and an average price target of $38.20, compared with a recent share price of $26.40.
• Garrett Motion exceeded quarterly earnings expectations, reporting $0.53 in EPS versus a $0.46 estimate, while revenue rose 6.9% year over year to $976 million. The company also maintains a quarterly dividend of $0.08 per share.

Bank of America Corp DE acquired a new position in Garrett Motion Inc. (NASDAQ:GTX - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund acquired 1,255,599 shares of the company's stock, valued at approximately $45,490,000. Bank of America Corp DE owned 0.67% of Garrett Motion at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Man Group plc bought a new stake in Garrett Motion during the 2nd quarter valued at $15,692,000. Jupiter Topco LLC bought a new stake in shares of Garrett Motion in the second quarter worth about $2,847,000. Hsbc Holdings PLC purchased a new stake in Garrett Motion in the 2nd quarter worth approximately $1,864,000. Canada Pension Plan Investment Board purchased a new stake in Garrett Motion in the 2nd quarter worth approximately $649,000. Finally, Castleark Management LLC bought a new stake in shares of Garrett Motion in the 2nd quarter worth approximately $17,009,000. 86.27% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Deutsche Bank Aktiengesellschaft raised shares of Garrett Motion from a "hold" rating to a "buy" rating and raised their target price for the stock from $33.00 to $36.00 in a research report on Thursday, July 30th. JPMorgan Chase & Co. decreased their price target on shares of Garrett Motion from $37.00 to $35.00 and set an "overweight" rating for the company in a research note on Tuesday, September 15th. Wall Street Zen downgraded Garrett Motion from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 18th. Zacks Research raised Garrett Motion from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, September 8th. Finally, BWS Financial reaffirmed a "buy" rating and issued a $42.00 price target on shares of Garrett Motion in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $38.20.

Insiders Place Their Bets

In related news, SVP Mark Rodrigues sold 6,140 shares of the stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $33.30, for a total transaction of $204,462.00. Following the sale, the senior vice president directly owned 77,038 shares of the company's stock, valued at $2,565,365.40. This trade represents a 7.38% decrease in their ownership of the stock. The transaction was disclosed in a filing 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 Daniel Deiro sold 20,000 shares of Garrett Motion stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $26.89, for a total value of $537,800.00. Following the completion of the sale, the senior vice president owned 113,783 shares of the company's stock, valued at $3,059,624.87. The trade was a 14.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 56,140 shares of company stock valued at $1,543,262. Corporate insiders own 1.10% of the company's stock.

Garrett Motion Trading Up 0.5%

Shares of NASDAQ:GTX opened at $26.40 on Tuesday. The stock has a fifty day simple moving average of $28.74 and a two-hundred day simple moving average of $27.10. Garrett Motion Inc. has a 12-month low of $12.26 and a 12-month high of $36.25. The stock has a market capitalization of $4.92 billion, a price-to-earnings ratio of 14.51, a PEG ratio of 0.67 and a beta of 0.79.

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

Garrett Motion Announces Dividend

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

Garrett Motion Profile

Garrett Motion Inc is a technology company that develops products and software for the automotive and commercial vehicle industries. Its portfolio is focused on improving vehicle performance, fuel efficiency, emissions control and electrification.

The company's products include turbochargers, electric boosting systems, fuel-cell compressors, thermal-management technologies and related automotive software. Garrett supplies components and systems for passenger vehicles, commercial vehicles and motorsports applications, while also serving the automotive aftermarket.

Garrett Motion has roots in Honeywell's transportation systems business and became an independent publicly traded company in 2018.

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