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

Key Points

• Carmel Capital Management opened a new position in Garrett Motion during the first quarter, buying 314,750 shares valued at about $5.7 million. The stake equals roughly 1.6% of Carmel’s portfolio and about 0.17% of Garrett Motion’s outstanding shares.
• Institutional ownership in Garrett Motion remains high at 86.27%, and several other funds also increased or initiated positions recently. At the same time, company insiders have been selling shares, including the CFO and an SVP.
• Analysts currently view GTX as a Moderate Buy with an average price target of $31.83, while recent earnings beat expectations with EPS of $0.49 and revenue of $985 million. The stock has also rallied to around its 52-week high near $36.25.

Carmel Capital Management L.L.C. acquired a new position in shares of Garrett Motion Inc. (NASDAQ:GTX - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 314,750 shares of the company's stock, valued at approximately $5,719,000. Garrett Motion comprises about 1.6% of Carmel Capital Management L.L.C.'s investment portfolio, making the stock its 20th biggest position. Carmel Capital Management L.L.C. owned about 0.17% of Garrett Motion as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in the business. Jones Financial Companies Lllp purchased a new position in Garrett Motion during the first quarter worth about $42,000. Jane Street Group LLC grew its holdings in Garrett Motion by 641.7% in the 1st quarter. Jane Street Group LLC now owns 90,919 shares of the company's stock valued at $761,000 after buying an additional 78,661 shares during the period. Cetera Investment Advisers purchased a new stake in Garrett Motion in the 2nd quarter valued at about $121,000. Legal & General Group Plc increased its stake in shares of Garrett Motion by 30.4% during the 2nd 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 last quarter. Finally, Prudential Financial Inc. acquired a new position in shares of Garrett Motion during the 2nd quarter valued at about $225,000. 86.27% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms recently issued reports on GTX. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $24.00 target price on shares of Garrett Motion in a research report on Friday, May 1st. BWS Financial upped their price target on shares of Garrett Motion from $32.00 to $42.00 and gave the stock a "buy" rating in a research report on Thursday, May 21st. Stifel Nicolaus increased their price target on shares of Garrett Motion from $29.00 to $36.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. Freedom Capital lowered shares of Garrett Motion from a "strong-buy" rating to a "hold" rating in a report on Monday, May 4th. Finally, JPMorgan Chase & Co. boosted 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. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $31.83.

Insider Buying and Selling at Garrett Motion

In other news, SVP Mark Albert Rodrigues sold 6,140 shares of the firm's stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $33.30, for a total value 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 trade represents a 7.38% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Sean Deason sold 110,000 shares of Garrett Motion stock in a transaction 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 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. 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. Insiders have sold 213,834 shares of company stock valued at $6,918,710 in the last ninety days. Corporate insiders own 1.10% of the company's stock.

Garrett Motion Price Performance

Garrett Motion stock opened at $36.22 on Wednesday. The stock's 50-day moving average is $30.27 and its 200-day moving average is $22.64. The company has a market cap of $6.78 billion, a price-to-earnings ratio of 21.18, a price-to-earnings-growth ratio of 1.10 and a beta of 0.79. Garrett Motion Inc. has a 12 month low of $10.38 and a 12 month high of $36.25.

Garrett Motion (NASDAQ:GTX - Get Free Report) last released its quarterly earnings data on Friday, May 1st. The company reported $0.49 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.06. Garrett Motion had a negative return on equity of 42.77% and a net margin of 9.29%.The business had revenue of $985.00 million for the quarter, compared to analyst estimates of $917.23 million. Garrett Motion's quarterly revenue was up 12.2% compared to the same quarter last year. Research analysts anticipate that Garrett Motion Inc. will post 1.83 EPS for the current year.

Garrett Motion Dividend Announcement

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

Garrett Motion 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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