Garrett Motion (NASDAQ:GTX) Earns "Buy" Rating from BWS Financial

Key Points

• BWS Financial reaffirmed its “Buy” rating on Garrett Motion and set a $42 price target, implying approximately 37% upside from the reported $30.57 share price. Analysts collectively rate the stock “Moderate Buy,” with an average target of $37.80.
• Garrett Motion reported a quarterly earnings beat, with EPS of $0.53 versus the $0.46 consensus estimate and revenue of $976 million, up 6.9% year over year. Management also raised its 2026 outlook, projecting full-year revenue of approximately $3.7 billion to $3.9 billion.
• Institutional investors own 86.27% of the company, while insiders sold 213,834 shares worth about $6.9 million over the past three months. The stock was trading near $30.57, compared with a 12-month range of $12.26 to $36.25.

Garrett Motion (NASDAQ:GTX - Get Free Report)'s stock had its "buy" rating reaffirmed by BWS Financial in a research note issued to investors on Thursday,Benzinga reports. They presently have a $42.00 price objective on the stock. BWS Financial's target price suggests a potential upside of 37.41% from the company's current price.

Other equities research analysts also recently issued research reports about the stock. Stifel Nicolaus boosted their price objective on shares of Garrett Motion from $29.00 to $36.00 and gave the company a "buy" rating in a research report on Thursday, May 14th. Wall Street Zen cut Garrett Motion from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Zacks Research cut shares of Garrett Motion from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. JPMorgan Chase & Co. increased their price target on shares of Garrett Motion from $30.00 to $33.00 and gave the stock an "overweight" rating in a report on Thursday, May 14th. Finally, Royal Bank Of Canada set a $42.00 price objective on Garrett Motion in a research report on Thursday, May 21st. Five analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Garrett Motion presently has an average rating of "Moderate Buy" and an average target price of $37.80.

Garrett Motion Price Performance

NASDAQ:GTX traded up $1.79 during mid-day trading on Thursday, reaching $30.57. 803,980 shares of the company's stock traded hands, compared to its average volume of 2,597,936. The company has a 50 day moving average price of $32.74 and a 200-day moving average price of $24.75. Garrett Motion has a 12-month low of $12.26 and a 12-month high of $36.25. The firm has a market capitalization of $5.72 billion, a price-to-earnings ratio of 17.85, a PEG ratio of 0.89 and a beta of 0.78.

Garrett Motion (NASDAQ:GTX - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.07. Garrett Motion had a net margin of 9.29% and a negative return on equity of 42.77%. The company had revenue of $976.00 million for the quarter. During the same quarter in the prior year, the firm earned $0.42 EPS. Garrett Motion's quarterly revenue was up 6.9% compared to the same quarter last year. As a group, analysts forecast that Garrett Motion will post 1.81 EPS for the current year.

Insider Activity

In related news, Director Daniel A. Ninivaggi sold 17,178 shares of Garrett Motion stock in a transaction on Friday, May 15th. The shares were sold at an average price of $31.22, for a total transaction of $536,297.16. Following the sale, the director owned 124,885 shares of the company's stock, valued at $3,898,909.70. The trade was a 12.09% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 shares were sold at an average price of $31.93, for a total value of $3,512,300.00. Following the sale, the chief financial officer owned 261,909 shares of the company's stock, valued at $8,362,754.37. This represents a 29.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 213,834 shares of company stock valued at $6,918,710. 1.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of GTX. Fuller & Thaler Asset Management Inc. acquired a new stake in shares of Garrett Motion in the 4th quarter valued at $180,383,000. LSV Asset Management increased its holdings in Garrett Motion by 45.8% in the fourth quarter. LSV Asset Management now owns 6,235,408 shares of the company's stock valued at $108,683,000 after purchasing an additional 1,958,808 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Garrett Motion by 170.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 5,139,439 shares of the company's stock worth $89,580,000 after purchasing an additional 3,241,952 shares during the period. Marshall Wace LLP boosted its holdings in Garrett Motion by 85.9% during the fourth quarter. Marshall Wace LLP now owns 4,473,196 shares of the company's stock worth $77,968,000 after purchasing an additional 2,067,264 shares during the last quarter. Finally, Vanguard Group Inc. raised its stake in Garrett Motion by 5.6% in the 4th quarter. Vanguard Group Inc. now owns 4,424,546 shares of the company's stock valued at $77,120,000 after acquiring an additional 234,735 shares during the period. 86.27% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Garrett Motion

Here are the key news stories impacting Garrett Motion this week:

• Positive Sentiment: Q2 earnings beat expectations: Garrett reported $0.53 in adjusted earnings per share, above the $0.46 analyst consensus and up from $0.42 a year earlier. Revenue reached $976 million, increasing 6.9% year over year. Garrett Motion Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Strong profitability and cash flow: Second-quarter net income was $101 million, while adjusted EBIT totaled $152 million. Operating cash flow was $145 million and adjusted free cash flow was $122 million, supporting the company’s financial flexibility. Garrett Motion Reports Strong Second Quarter 2026 Results
• Positive Sentiment: 2026 outlook raised: Management increased its full-year outlook and expects revenue of approximately $3.7 billion to $3.9 billion, compared with consensus expectations of $3.8 billion. New turbocharger, commercial-vehicle, industrial-compression and data-center genset awards also provide potential support for future growth.
• Positive Sentiment: Analyst upgrade: Deutsche Bank upgraded GTX from “hold” to “buy” and raised its price target from $33 to $36, signaling greater confidence in the company’s earnings outlook and suggesting further upside from recent trading levels. Deutsche Bank Upgrades Garrett Motion
• Neutral Sentiment: Quarterly dividend declared: Garrett announced a $0.08-per-share dividend payable September 15 to shareholders of record September 1. The annualized yield is approximately 1.1%, providing modest income support but unlikely to be a major near-term catalyst.

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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