Garrett Motion Inc. (NYSE:GTX) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts give Garrett Motion a consensus rating of "Moderate Buy" from seven firms (1 strong buy, 4 buy, 2 hold) with an average 12‑month price target of $18.80.
• The company recently beat quarterly EPS estimates ($0.42 vs. $0.39), reported revenue growth of 5.6% year‑over‑year, and pays a $0.08 quarterly dividend (about a 1.6% yield).
• Insiders have been net sellers (337,000 shares sold, ~$6.84M in the last 90 days) even as institutional ownership is very high at 86.27% with several funds markedly increasing stakes.

Garrett Motion Inc. (NYSE:GTX - Get Free Report) has earned an average rating of "Moderate Buy" from the seven ratings firms that are covering the stock, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold rating, four have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $18.80.

A number of research firms recently weighed in on GTX. Freedom Capital upgraded shares of Garrett Motion to a "strong-buy" rating in a research report on Monday, April 6th. Zacks Research cut shares of Garrett Motion from a "strong-buy" rating to a "hold" rating in a research note on Monday, December 29th. BWS Financial reaffirmed a "buy" rating and issued a $22.00 target price on shares of Garrett Motion in a report on Thursday. Stifel Nicolaus lifted their target price on shares of Garrett Motion from $20.00 to $21.00 and gave the company a "buy" rating in a report on Tuesday, December 16th. Finally, JPMorgan Chase & Co. started coverage on shares of Garrett Motion in a research note on Wednesday, December 17th. They set an "overweight" rating and a $23.00 price target on the stock.

Garrett Motion Stock Performance

Shares of GTX opened at $19.48 on Monday. The firm has a 50-day simple moving average of $18.87 and a 200-day simple moving average of $17.27. The company has a market capitalization of $3.70 billion, a price-to-earnings ratio of 15.34 and a beta of 0.44. Garrett Motion has a fifty-two week low of $8.54 and a fifty-two week high of $21.42.

Garrett Motion (NYSE:GTX - Get Free Report) last posted its quarterly earnings data on Thursday, February 19th. The company reported $0.42 earnings per share for the quarter, topping analysts' consensus estimates of $0.39 by $0.03. Garrett Motion had a negative return on equity of 38.75% and a net margin of 8.12%.The business's revenue for the quarter was up 5.6% compared to the same quarter last year. Equities research analysts forecast that Garrett Motion will post 1.25 EPS for the current year.

Garrett Motion Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Monday, March 2nd were given a dividend of $0.08 per share. The ex-dividend date was Monday, March 2nd. This represents a $0.32 annualized dividend and a yield of 1.6%. Garrett Motion's payout ratio is presently 21.05%.

Insiders Place Their Bets

In other news, SVP Daniel Deiro sold 20,000 shares of the stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $20.29, for a total transaction of $405,800.00. Following the completion of the transaction, the senior vice president directly owned 160,994 shares of the company's stock, valued at approximately $3,266,568.26. This represents a 11.05% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Julia Steyn sold 17,000 shares of Garrett Motion stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $19.86, for a total value of $337,620.00. Following the completion of the sale, the director owned 50,233 shares in the company, valued at approximately $997,627.38. This trade represents a 25.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 337,000 shares of company stock worth $6,839,290. Company insiders own 0.83% of the company's stock.

Institutional Investors Weigh In On Garrett Motion

Institutional investors have recently made changes to their positions in the stock. Fuller & Thaler Asset Management Inc. purchased a new stake in Garrett Motion during the fourth quarter worth about $180,383,000. William Blair Investment Management LLC boosted its stake in shares of 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 worth $105,090,000 after acquiring an additional 2,605,296 shares in the last quarter. LSV Asset Management grew its holdings in shares of Garrett Motion by 45.8% in the 4th quarter. LSV Asset Management now owns 6,235,408 shares of the company's stock worth $108,683,000 after acquiring an additional 1,958,808 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in shares of Garrett Motion by 170.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 5,139,439 shares of the company's stock worth $89,580,000 after acquiring an additional 3,241,952 shares during the period. Finally, Marshall Wace LLP increased its stake in Garrett Motion by 85.9% in the 4th quarter. Marshall Wace LLP now owns 4,473,196 shares of the company's stock valued at $77,968,000 after purchasing an additional 2,067,264 shares in the last quarter. 86.27% of the stock is currently owned by hedge funds and other institutional investors.

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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