Garrett Motion Inc. (NASDAQ:GTX) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Garrett Motion now has a consensus analyst rating of “Moderate Buy”, based on coverage from eight brokerages. The average 12-month price target is about $31.83, with recent reports from firms like Stifel Nicolaus and BWS Financial raising their targets.
• The company reported strong quarterly results, posting EPS of $0.49 versus expectations of $0.43 and revenue of $985 million, above estimates and up 12.2% year over year. Analysts currently expect full-year EPS of $1.83.
• There has been notable insider selling, including transactions by SVP Thierry Mabru and CFO Sean Deason, while hedge funds continue to hold a large stake in the company. Institutional investors own about 86.27% of Garrett Motion shares.

Garrett Motion Inc. (NASDAQ:GTX - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the eight brokerages that are covering the stock, MarketBeat reports. Two investment analysts have rated the stock with a hold recommendation, five have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $31.8333.

A number of brokerages recently issued reports on GTX. Weiss Ratings began coverage on Garrett Motion in a research report on Wednesday, April 29th. They set a "buy (b)" rating for the company. 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. Zacks Research raised Garrett Motion from a "hold" rating to a "strong-buy" rating in a research report on Friday, May 22nd. BWS Financial raised their price objective on Garrett Motion from $32.00 to $42.00 and gave the stock a "buy" rating in a research report on Thursday, May 21st. Finally, Royal Bank Of Canada set a $42.00 price objective on Garrett Motion in a research report on Thursday, May 21st.

Insiders Place Their Bets

In related 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 transaction of $2,310,000.00. Following the completion of 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Sean Deason sold 110,000 shares of the firm's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $31.93, for a total value of $3,512,300.00. Following the sale, the chief financial officer directly owned 261,909 shares of the company's stock, valued at $8,362,754.37. The trade was a 29.58% decrease in their ownership of the stock. 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 sold a total of 213,834 shares of company stock valued at $6,918,710 over the last 90 days. Company insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Garrett Motion

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Fuller & Thaler Asset Management Inc. purchased a new position in Garrett Motion during the 4th quarter valued at about $180,383,000. William Blair Investment Management LLC boosted its holdings in Garrett Motion by 51.0% during the 3rd quarter. William Blair Investment Management LLC now owns 7,715,824 shares of the company's stock valued at $105,090,000 after acquiring an additional 2,605,296 shares during the period. LSV Asset Management boosted its holdings in Garrett Motion by 45.8% during the 4th quarter. LSV Asset Management now owns 6,235,408 shares of the company's stock valued at $108,683,000 after acquiring an additional 1,958,808 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings 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 valued at $89,580,000 after acquiring an additional 3,241,952 shares during the period. Finally, Marshall Wace LLP boosted its holdings in Garrett Motion by 85.9% during the 4th 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 period. 86.27% of the stock is currently owned by hedge funds and other institutional investors.

Garrett Motion Stock Up 0.3%

Shares of GTX opened at $35.11 on Friday. Garrett Motion has a 52-week low of $10.23 and a 52-week high of $35.41. The company has a market capitalization of $6.57 billion, a PE ratio of 20.53, a price-to-earnings-growth ratio of 1.10 and a beta of 0.79. The stock has a fifty day simple moving average of $29.63 and a two-hundred day simple moving average of $22.33.

Garrett Motion (NASDAQ:GTX - Get Free Report) last issued its earnings results on Friday, May 1st. The company reported $0.49 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $917.23 million. Garrett Motion's revenue for the quarter was up 12.2% compared to the same quarter last year. As a group, equities analysts anticipate that Garrett Motion will post 1.83 earnings per share for the current fiscal year.

Garrett Motion Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors 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 dividend yield of 0.9%. The ex-dividend date of this dividend was Monday, June 1st. Garrett Motion's dividend payout ratio (DPR) is presently 18.71%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.