Gabelli Funds LLC Trims Stake in Garrett Motion Inc. $GTX

Key Points

• Gabelli Funds LLC trimmed its Garrett Motion stake by 6% in the fourth quarter, selling 65,033 shares and ending with 1,023,504 shares valued at about $17.84 million.
• Analysts remain mostly constructive on GTX, with five Buy ratings and three Hold ratings; the consensus view is a "Moderate Buy" and the average price target is $27.80, though some firms recently adjusted their targets and ratings.
• Garrett Motion posted a strong quarter and raised its dividend profile, beating EPS and revenue estimates with $0.49 EPS on $985 million in revenue, while also declaring a quarterly dividend of $0.08 per share.

Gabelli Funds LLC lowered its stake in shares of Garrett Motion Inc. (NASDAQ:GTX - Free Report) by 6.0% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,023,504 shares of the company's stock after selling 65,033 shares during the quarter. Gabelli Funds LLC owned about 0.53% of Garrett Motion worth $17,840,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. D Orazio & Associates Inc. increased its position in shares of Garrett Motion by 7.2% during the third quarter. D Orazio & Associates Inc. now owns 15,101 shares of the company's stock valued at $206,000 after buying an additional 1,015 shares during the period. Spire Wealth Management increased its position in shares of Garrett Motion by 971.2% during the fourth quarter. Spire Wealth Management now owns 1,489 shares of the company's stock valued at $26,000 after buying an additional 1,350 shares during the period. Baron Wealth Management LLC increased its position in shares of Garrett Motion by 6.3% during the fourth quarter. Baron Wealth Management LLC now owns 26,446 shares of the company's stock valued at $461,000 after buying an additional 1,570 shares during the period. TD Waterhouse Canada Inc. increased its position in shares of Garrett Motion by 1,422.3% during the fourth quarter. TD Waterhouse Canada Inc. now owns 1,705 shares of the company's stock valued at $30,000 after buying an additional 1,593 shares during the period. Finally, Harbor Capital Advisors Inc. increased its position in shares of Garrett Motion by 99.2% during the fourth quarter. Harbor Capital Advisors Inc. now owns 3,453 shares of the company's stock valued at $60,000 after buying an additional 1,720 shares during the period. Hedge funds and other institutional investors own 86.27% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently issued reports on the stock. BWS Financial boosted their price target on shares of Garrett Motion from $22.00 to $32.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Freedom Capital cut shares of Garrett Motion from a "strong-buy" rating to a "hold" rating in a report on Monday, May 4th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $24.00 price objective on shares of Garrett Motion in a report on Friday, May 1st. Weiss Ratings began coverage on shares of Garrett Motion in a report on Wednesday, April 29th. They issued a "buy (b)" rating on the stock. Finally, JPMorgan Chase & Co. upped their price objective on shares of Garrett Motion from $30.00 to $33.00 and gave the stock an "overweight" rating in a report on Thursday, May 14th. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $27.80.

Insider Activity

In other 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 transaction, the director owned 124,885 shares in the company, valued at approximately $3,898,909.70. This represents a 12.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Rabiller sold 144,000 shares of the company's stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $20.32, for a total transaction of $2,926,080.00. Following the completion of the transaction, the chief executive officer owned 905,546 shares in the company, valued at approximately $18,400,694.72. This represents a 13.72% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 354,178 shares of company stock worth $7,375,587. Corporate insiders own 1.10% of the company's stock.

Garrett Motion Stock Performance

Shares of GTX opened at $30.38 on Tuesday. The stock has a market cap of $5.69 billion, a PE ratio of 17.77, a price-to-earnings-growth ratio of 1.03 and a beta of 0.70. Garrett Motion Inc. has a fifty-two week low of $9.57 and a fifty-two week high of $32.44. The firm's 50-day simple moving average is $20.99 and its two-hundred day simple moving average is $19.03.

Garrett Motion (NASDAQ:GTX - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $985.00 million for 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 company's revenue for the quarter was up 12.2% on a year-over-year basis. Equities research analysts predict that Garrett Motion Inc. will post 1.83 EPS for the current year.

Garrett Motion Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Monday, June 1st. Garrett Motion's dividend payout ratio is 18.71%.

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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