Gates Capital Management Inc. Boosts Stake in Garrett Motion Inc. $GTX

Key Points

• Gates Capital Management Inc. increased its position in Garrett Motion Inc. by 53.1% in Q1, resulting in ownership of 6,795,553 shares valued at approximately $56.88 million.
• A total of 86.27% of Garrett Motion's stock is held by institutional investors, with several hedge funds significantly increasing their stakes recently.
• Garrett Motion declared a quarterly dividend of $0.06 per share, with an annualized yield of 1.8%, payable on September 16th.

Gates Capital Management Inc. raised its stake in shares of Garrett Motion Inc. (NYSE:GTX - Free Report) by 53.1% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 6,795,553 shares of the company's stock after acquiring an additional 2,358,294 shares during the quarter. Garrett Motion makes up about 1.1% of Gates Capital Management Inc.'s portfolio, making the stock its 26th biggest position. Gates Capital Management Inc. owned approximately 3.35% of Garrett Motion worth $56,879,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also bought and sold shares of GTX. Vestcor Inc bought a new stake in Garrett Motion during the 1st quarter valued at $61,000. Deutsche Bank AG increased its position in shares of Garrett Motion by 185.5% during the fourth quarter. Deutsche Bank AG now owns 8,202 shares of the company's stock worth $74,000 after purchasing an additional 5,329 shares in the last quarter. Virtu Financial LLC acquired a new position in shares of Garrett Motion during the first quarter worth $94,000. Mariner LLC increased its position in shares of Garrett Motion by 35.6% during the fourth quarter. Mariner LLC now owns 19,434 shares of the company's stock worth $175,000 after purchasing an additional 5,107 shares in the last quarter. Finally, Pacific Global Investment Management Co. increased its position in shares of Garrett Motion by 41.6% during the first quarter. Pacific Global Investment Management Co. now owns 23,568 shares of the company's stock worth $197,000 after purchasing an additional 6,928 shares in the last quarter. Institutional investors own 86.27% of the company's stock.

Insiders Place Their Bets

In other news, major shareholder Cyrus Capital Partners, L.P. sold 1,300,000 shares of Garrett Motion stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $13.00, for a total value of $16,900,000.00. Following the sale, the insider owned 21,128,348 shares in the company, valued at $274,668,524. This trade represents a 5.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Centerbridge Credit Partners M sold 9,000,000 shares of Garrett Motion stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $12.27, for a total transaction of $110,430,000.00. Following the completion of the sale, the insider owned 4,740,569 shares in the company, valued at approximately $58,166,781.63. This trade represents a 65.50% decrease in their position. The disclosure for this sale can be found here. Insiders sold 12,907,224 shares of company stock valued at $157,275,679 in the last ninety days. 0.83% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on GTX shares. BWS Financial reaffirmed a "buy" rating and set a $14.00 price target on shares of Garrett Motion in a research report on Wednesday, June 25th. Zacks Research downgraded Garrett Motion from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 25th. BNP Paribas started coverage on Garrett Motion in a research report on Wednesday, July 16th. They set an "outperform" rating on the stock. Finally, BNP Paribas Exane started coverage on shares of Garrett Motion in a report on Wednesday, July 16th. They set an "outperform" rating and a $14.00 price objective on the stock. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $14.00.

Garrett Motion Trading Up 1.6%

GTX traded up $0.21 on Thursday, reaching $13.18. The stock had a trading volume of 2,773,087 shares, compared to its average volume of 2,106,282. Garrett Motion Inc. has a 12-month low of $7.01 and a 12-month high of $13.52. The business's 50-day moving average price is $12.23 and its two-hundred day moving average price is $10.59. The company has a market cap of $2.66 billion, a P/E ratio of 10.38 and a beta of 0.27.

Garrett Motion Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be issued a $0.06 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $0.24 dividend on an annualized basis and a yield of 1.8%. Garrett Motion's payout ratio is presently 16.78%.

Garrett Motion Profile

Garrett Motion Inc, together with its subsidiaries, designs, manufactures, and sells turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers and distributors worldwide. The company offers cutting-edge technology for the mobility and industrial space, including light vehicles, commercial vehicles, and industrial applications.