Orchard Capital Management LLC Takes $3.67 Million Position in Garrett Motion Inc. $GTX

Key Points

• Orchard Capital Management initiated a $3.67 million position in Garrett Motion during the second quarter, purchasing 101,167 shares. Institutional investors collectively own 86.27% of the company.
• Garrett Motion reported quarterly EPS of $0.53, exceeding estimates of $0.46, while revenue rose 6.9% year over year to $976 million. The company also declared a quarterly dividend of $0.08 per share.
• Analyst sentiment remains positive, with five Buy ratings and two Holds; the consensus rating is “Moderate Buy” and the average price target is $38.60. However, insiders sold roughly $6.38 million of stock over the past 90 days.

Orchard Capital Management LLC bought a new position in Garrett Motion Inc. (NASDAQ:GTX - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 101,167 shares of the company's stock, valued at approximately $3,665,000. Garrett Motion comprises about 3.6% of Orchard Capital Management LLC's portfolio, making the stock its 9th biggest position. Orchard Capital Management LLC owned approximately 0.05% of Garrett Motion at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of the company. De Lisle Partners LLP purchased a new position in shares of Garrett Motion in the second quarter worth approximately $15,369,000. William Blair Investment Management LLC purchased a new stake in shares of Garrett Motion in the 2nd quarter valued at approximately $117,127,000. Ieq Capital LLC acquired a new position in Garrett Motion in the 2nd quarter worth approximately $1,320,000. JB Capital Partners LP acquired a new position in Garrett Motion in the 2nd quarter worth approximately $3,296,930,000. Finally, C M Bidwell & Associates Ltd. purchased a new position in Garrett Motion during the 2nd quarter worth approximately $134,000. 86.27% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, SVP Thierry Mabru sold 70,000 shares of the firm's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $33.00, for a total value of $2,310,000.00. Following the sale, the senior vice president directly owned 147,956 shares of the company's stock, valued at approximately $4,882,548. This trade represents a 32.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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 dated Wednesday, June 24th. The stock was sold at an average price of $33.30, for a total value of $204,462.00. Following the transaction, the senior vice president directly owned 77,038 shares of the company's stock, valued at $2,565,365.40. This represents a 7.38% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 196,656 shares of company stock valued at $6,382,413. 1.10% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on GTX shares. Freedom Capital lowered Garrett Motion from a "strong-buy" rating to a "hold" rating in a report on Monday, May 4th. Weiss Ratings reissued a "buy (b)" rating on shares of Garrett Motion in a research note on Friday, July 24th. Stifel Nicolaus raised their price objective on Garrett Motion from $29.00 to $36.00 and gave the stock a "buy" rating in a research report on Thursday, May 14th. JPMorgan Chase & Co. lifted their target price on Garrett Motion from $33.00 to $37.00 and gave the company an "overweight" rating in a research note on Monday, August 10th. Finally, Royal Bank Of Canada set a $42.00 target price on Garrett Motion in a report on Thursday, May 21st. Five equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $38.60.

Garrett Motion Price Performance

NASDAQ GTX opened at $26.62 on Friday. The stock's 50-day moving average is $31.55 and its two-hundred day moving average is $26.00. Garrett Motion Inc. has a fifty-two week low of $12.26 and a fifty-two week high of $36.25. The firm has a market cap of $4.96 billion, a P/E ratio of 14.63, a price-to-earnings-growth ratio of 0.68 and a beta of 0.82.

Garrett Motion (NASDAQ:GTX - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $0.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.46 by $0.07. Garrett Motion had a negative return on equity of 46.50% and a net margin of 9.51%.The firm had revenue of $976.00 million during the quarter. During the same period in the previous year, the company earned $0.42 EPS. The firm's revenue for the quarter was up 6.9% compared to the same quarter last year. On average, equities analysts expect that Garrett Motion Inc. will post 1.91 EPS for the current year.

Garrett Motion Announces Dividend

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

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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