Gabelli Funds LLC Decreases Holdings in Garrett Motion Inc. $GTX

Key Points

• Gabelli Funds LLC reduced its stake in Garrett Motion by 12.3% in the first quarter, selling 126,200 shares and leaving it with 897,304 shares valued at about $16.3 million.
• Institutional ownership remains very high, with hedge funds and other institutions holding 86.27% of Garrett Motion’s shares; several other funds increased their positions substantially in recent quarters.
• Wall Street sentiment is mixed but constructive, with a consensus rating of “Moderate Buy” and an average price target of $35.40, while the stock last traded at $31.51 after the company beat earnings and revenue estimates in its latest quarter.

Gabelli Funds LLC decreased its stake in Garrett Motion Inc. (NASDAQ:GTX - Free Report) by 12.3% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 897,304 shares of the company's stock after selling 126,200 shares during the quarter. Gabelli Funds LLC owned approximately 0.48% of Garrett Motion worth $16,304,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of GTX. Fuller & Thaler Asset Management Inc. acquired a new position in shares of Garrett Motion during the 4th quarter worth about $180,383,000. LSV Asset Management increased its stake in Garrett Motion by 45.8% during the 4th quarter. LSV Asset Management now owns 6,235,408 shares of the company's stock worth $108,683,000 after buying an additional 1,958,808 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in Garrett Motion by 170.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 5,139,439 shares of the company's stock worth $89,580,000 after buying an additional 3,241,952 shares in the last quarter. Marshall Wace LLP raised its holdings in shares of Garrett Motion by 85.9% during the fourth quarter. Marshall Wace LLP now owns 4,473,196 shares of the company's stock valued at $77,968,000 after acquiring an additional 2,067,264 shares during the last quarter. Finally, Vanguard Group Inc. raised its holdings in shares of Garrett Motion by 5.6% during the fourth quarter. Vanguard Group Inc. now owns 4,424,546 shares of the company's stock valued at $77,120,000 after acquiring an additional 234,735 shares during the last quarter. Hedge funds and other institutional investors own 86.27% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $24.00 target price on shares of Garrett Motion in a research report on Friday, May 1st. Freedom Capital lowered shares of Garrett Motion from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 4th. BWS Financial reiterated a "buy" rating and issued a $42.00 price objective on shares of Garrett Motion in a report on Monday, July 6th. Zacks Research lowered Garrett Motion from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Finally, Wall Street Zen lowered Garrett Motion from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 18th. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $35.40.

Garrett Motion Price Performance

Shares of GTX opened at $31.51 on Friday. The stock has a market cap of $5.90 billion, a PE ratio of 18.43, a P/E/G ratio of 0.93 and a beta of 0.78. Garrett Motion Inc. has a 1-year low of $12.09 and a 1-year high of $36.25. The firm has a 50-day simple moving average of $32.77 and a two-hundred day simple moving average of $24.45.

Garrett Motion (NASDAQ:GTX - Get Free Report) last announced its earnings results on Friday, May 1st. The company reported $0.49 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.06. Garrett Motion had a net margin of 9.29% and a negative return on equity of 42.77%. The firm had revenue of $985.00 million for the quarter, compared to the consensus estimate of $917.23 million. The firm's revenue was up 12.2% on a year-over-year basis. As a group, sell-side analysts expect that Garrett Motion Inc. will post 1.81 earnings per share for the current fiscal year.

Garrett Motion Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were issued a dividend of $0.08 per share. The ex-dividend date of this dividend was Monday, June 1st. This represents a $0.32 annualized dividend and a dividend yield of 1.0%. Garrett Motion's dividend payout ratio (DPR) is presently 18.71%.

Insider Transactions at Garrett Motion

In related news, SVP Thierry Mabru sold 70,000 shares of the stock in a transaction 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 completion of the sale, the senior vice president owned 147,956 shares in the company, valued at $4,882,548. This represents a 32.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Daniel A. Ninivaggi sold 17,178 shares of Garrett Motion stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $31.22, for a total transaction of $536,297.16. Following the completion of the sale, the director directly owned 124,885 shares in the company, valued at approximately $3,898,909.70. The trade was a 12.09% 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 213,834 shares of company stock worth $6,918,710 over the last three months. 1.10% of the stock is currently owned by company insiders.

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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