Garrett Motion (NASDAQ:GTX) Downgraded to "Buy" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Garrett Motion from “strong-buy” to “buy,” adding to a mixed analyst picture that still leaves the stock with a Moderate Buy consensus and a $35.40 target price.
• Garrett Motion’s recent quarter beat expectations, reporting EPS of $0.49 versus $0.43 expected and revenue of $985 million, up 12.2% year over year.
• Insider selling has been notable, including recent share sales by a director and an SVP, while institutional ownership remains high at 86.27%.

Garrett Motion (NASDAQ:GTX - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday.

GTX has been the topic of a number of other reports. Freedom Capital cut Garrett Motion from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 4th. BWS Financial restated a "buy" rating and set a $42.00 price target on shares of Garrett Motion in a research report on Monday, July 6th. Stifel Nicolaus upped their price target on shares of Garrett Motion from $29.00 to $36.00 and gave the stock a "buy" rating in a research report on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $24.00 price objective on shares of Garrett Motion in a report on Friday, May 1st. Finally, Royal Bank Of Canada set a $42.00 price objective on shares of Garrett Motion in a research report on Thursday, May 21st. Four analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Garrett Motion has an average rating of "Moderate Buy" and a consensus target price of $35.40.

Garrett Motion Trading Up 0.7%

Shares of Garrett Motion stock opened at $31.77 on Friday. The business's 50 day simple moving average is $32.66 and its 200-day simple moving average is $23.95. The stock has a market capitalization of $5.95 billion, a price-to-earnings ratio of 18.58, a PEG ratio of 0.93 and a beta of 0.78. Garrett Motion has a twelve month low of $11.43 and a twelve month high of $36.25.

Garrett Motion (NASDAQ:GTX - Get Free Report) last announced its quarterly earnings results on Friday, May 1st. The company reported $0.49 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $917.23 million. The business's revenue for the quarter was up 12.2% on a year-over-year basis. Sell-side analysts predict that Garrett Motion will post 1.82 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Daniel A. Ninivaggi sold 17,178 shares of the firm's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $31.22, for a total transaction of $536,297.16. Following the transaction, the director directly owned 124,885 shares of the company's stock, valued at approximately $3,898,909.70. This trade represents a 12.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Thierry Mabru sold 70,000 shares of Garrett Motion stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $33.00, for a total transaction of $2,310,000.00. Following the sale, the senior vice president owned 147,956 shares in the company, valued at approximately $4,882,548. This represents a 32.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 213,834 shares of company stock worth $6,918,710 over the last 90 days. Insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Garrett Motion

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Jones Financial Companies Lllp bought a new stake in shares of Garrett Motion during the 1st quarter worth about $42,000. Jane Street Group LLC lifted its stake in shares of Garrett Motion by 641.7% in the 1st quarter. Jane Street Group LLC now owns 90,919 shares of the company's stock worth $761,000 after acquiring an additional 78,661 shares during the period. Cetera Investment Advisers bought a new position in shares of Garrett Motion in the second quarter valued at approximately $121,000. Legal & General Group Plc boosted its holdings in shares of Garrett Motion by 30.4% in the second quarter. Legal & General Group Plc now owns 97,486 shares of the company's stock valued at $1,024,000 after acquiring an additional 22,727 shares in the last quarter. Finally, Prudential Financial Inc. acquired a new position in shares of Garrett Motion during the second quarter valued at approximately $225,000. Institutional investors own 86.27% of the company's stock.

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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