BlackRock Inc. Purchases Shares of 12,746,170 Garrett Motion Inc. $GTX

Key Points

• BlackRock initiated a position of 12.75 million Garrett Motion shares worth approximately $461.8 million, giving it a 6.83% stake. Institutional investors collectively own 86.27% of the company.
• Garrett Motion beat quarterly earnings expectations, reporting $0.53 in earnings per share versus the $0.46 consensus estimate, while revenue rose 6.9% year over year to $976 million.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $38.60. The company also declared a quarterly dividend of $0.08 per share.

BlackRock Inc. bought a new position in shares of Garrett Motion Inc. (NASDAQ:GTX - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 12,746,170 shares of the company's stock, valued at approximately $461,794,000. BlackRock Inc. owned about 6.83% of Garrett Motion as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also modified their holdings of the company. Jones Financial Companies Lllp bought a new stake in Garrett Motion in the first quarter valued at about $42,000. Jane Street Group LLC raised its stake in Garrett Motion by 641.7% during the 1st quarter. Jane Street Group LLC now owns 90,919 shares of the company's stock worth $761,000 after buying an additional 78,661 shares during the period. Cetera Investment Advisers bought a new position in Garrett Motion during the second quarter worth about $121,000. Legal & General Group Plc grew its stake in 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 during the period. Finally, Prudential Financial Inc. acquired a new position in Garrett Motion in the second quarter valued at about $225,000. 86.27% of the stock is owned by institutional investors.

Insider Transactions at Garrett Motion

In related news, SVP Thierry Mabru sold 70,000 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $33.00, for a total transaction of $2,310,000.00. Following the sale, the senior vice president owned 147,956 shares in the company, valued at approximately $4,882,548. This trade represents a 32.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Mark Albert Rodrigues sold 6,140 shares of the business's stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $33.30, for a total transaction of $204,462.00. Following the transaction, the senior vice president owned 77,038 shares of the company's stock, valued at approximately $2,565,365.40. This represents a 7.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 196,656 shares of company stock valued at $6,382,413. Company insiders own 1.10% of the company's stock.

Garrett Motion Stock Performance

Shares of Garrett Motion stock opened at $25.84 on Tuesday. The stock has a market cap of $4.82 billion, a PE ratio of 14.20, a PEG ratio of 0.68 and a beta of 0.82. Garrett Motion Inc. has a 52-week low of $12.26 and a 52-week high of $36.25. The firm has a 50-day moving average of $31.38 and a 200-day moving average of $26.10.

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

Garrett Motion Announces Dividend

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

Analysts Set New Price Targets

A number of brokerages recently commented on GTX. JPMorgan Chase & Co. raised their price objective on shares of Garrett Motion from $33.00 to $37.00 and gave the stock an "overweight" rating in a report on Monday, August 10th. Royal Bank Of Canada set a $42.00 target price on Garrett Motion in a report on Thursday, May 21st. BWS Financial reiterated a "buy" rating and issued a $42.00 price objective on shares of Garrett Motion in a report on Thursday, July 30th. Wall Street Zen downgraded shares of Garrett Motion from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Finally, Zacks Research lowered shares of Garrett Motion from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $38.60.

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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